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What is a Lease Purchase or Rent-To-Own?
A lease-purchase is a combination real estate rental, and sales technique. It is a property lease for a fixed time period, such as 12 or 36 months. At the end of the lease period, the purchase agreement portion of the contract is executed.
A lease purchase / rent to own transaction allows you to live in the home you desire while you establish & repair your credit or establish your work history. By buying a home on lease purchase / rent to own terms you also have time to create a good payment history, which both aid you in acquiring a new mortgage.
A lease purchase / rent to own transaction gives you, the buyer the exclusive option to lock in the purchase price of today, and then complete the purchase at anytime during the 12-36 month option period.
As the buyer in a lease purchase / rent to own home, you are not obligated to complete the purchase of a home. However the seller is, in fact legally required, during the option period to sell to you, and no one else. If you have bruised or even bad credit a lease purchase / rent to own home is the best solution to homeownership. Please feel free to search our site by personal criteria or just choose the "View All Properties" button in the top left navigation bar.
We provide Tools and Education!
New Visions Realty provides the tenant buyer with the tools and education.. We provide education how a lease purchase works and everything they need to do to become educated to buy or lease your home.
How Does a Lease Purchase Work ?
Lease purchase / rent to own transactions usually are not credit driven, but do require employment and income verification: to make sure that the buyer can afford the monthly lease payments.
How is purchase price established?
If the lease and purchase term is set up for 1 year then the purchase price is negotiated prior to signing the agreements. If the lease and purchase terms it set up for more then 1 year then the purchase price is set at market value. Next, the option fee is paid in order to secure the future purchase price as well as a future closing date.
What is market value?
The market value is established by having the property re-appraised and whatever the appraisal price comes back with is the purchase price.
How much down payment is required on the purchase agreement?
When you sign lease and the purchase agreement we require a down payment of 3 % of the total purchase price. For example if the agreed purchase price is $100,000.00 then the down payment is $3,000.00.
Buying a lease option home through a rent to own lease is one way to save for a down payment while you get to enjoy living in the house for lease option purchase. But be sure to fully understand this type of agreement as you must be willing to see the option all the way through and make your payments on time or you could risk losing the right to purchase the home and any additional option amounts you paid.
Searchers can also get information about your lease purchase homes through our regular homepage searches and by narrowing their search down to houses with lease option to purchase agreements.
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