Rent to Own Program

 

 

Our rent to own program  is available to renters who would like to own their  home but are  unable to take advantage of a lease option.  Our rent to own program requires no down payment or option fee .  However, it is less flexible than a lease option because the tenant is obligated to buy the property at the end of the contract period.

 

Rent to own allows the tenant to build a down payment for the purchase of their home through monthly rent payments.  For example, if a home normally rented for $800, and the  Rent to Own tenant  agreed to pay $1,000, the extra $200 accumulates toward the down payment. 

 

Over 30 months the tenant would build a down payment of $6,000 towards the purchase price.

 

If you are interested in taking advantage of this program please email Gerald@fidelityhousing.com.

Basics of a Lease Purchase

 

· Buyer pays the seller option money for the right to later purchase the property. This option money may be substantial.

 

 

· Buyer and seller agree on a purchase price, often at or a bit higher than market value.

 

 

· During the term of the option, the buyer agrees to lease the property from the seller for a predetermined rental amount.

 

 

· The term of the lease purchase agreement is negotiable, but the common length is generally from one year to three years, at which time the buyer applies for bank financing and pays the seller in full.

 

 

· The option money generally does not apply toward the down payment.

 

 

· A portion of the monthly lease payment typically applies toward the purchase price.

 

 

· Option money is nonrefundable.

 

 

· Nobody else can buy the property unless the buyer defaults.

 

 

· The buyer typically cannot assign the lease purchase agreement without seller approval.

 

 

· Buyers are often responsible for maintaining the property and paying all expenses associated with its upkeep, including taxes and insurance.

 

 

· The buyer is obligated to buy the property.