Full Into Home Success A-Z Process

Leasing options, also known as rent-to-own agreements, provide a pathway for individuals to eventually purchase a property while initially renting it. It offers flexibility and the opportunity to build towards homeownership, especially for those who may not qualify for traditional mortgages or face financial challenges. Here are the steps involved in a leasing option:

1. Agreement: The tenant and the property owner enter into a lease agreement that includes a provision giving the tenant the option to purchase the property at a later date. This agreement outlines the terms and conditions of the lease, including the monthly rent, lease duration, and the pre-determined purchase price.

2. Rent Payments: The tenant pays the agreed-upon monthly rent to the property owner, just like in a typical rental agreement.

3. Option Fee: The tenant will be required to pay an initial option consideration fee upfront, which grants them the exclusive right to purchase the property within a specified timeframe. This fee is non-refundable and may be credited towards the purchase price if the tenant decides to exercise the option.

4. Rent Credit Accumulation: As the tenant pays rent on time, a portion of the rent may be accumulated as a rent credit. This credit acts as a form of savings that can be used as a down payment or applied towards the purchase price when exercising the option to buy.

5. Property Maintenance: The tenant is responsible for maintaining the property during the lease period, just like in a regular rental agreement. This includes routine upkeep, repairs, and compliance with any homeowner association rules or regulations.

6. Option Exercise: At a predetermined date or within a specified period, the tenant has the choice to exercise the option and purchase the property. If they decide to proceed, the pre-determined purchase price agreed upon in the initial agreement remains unchanged.

7. Financing: During the program, the tenant will work with the mortgage broker to secure a traditional mortgage such as credit repair, documentation of payments which will help in turn complete the purchase of the property.

8. Property Transfer: Once the financing is secured, the ownership of the property is transferred to the tenant buyer, completing the transition from renting to homeownership.

Throughout this process, transparency and clear communication are essential. A reputable leasing option provider ensures that all terms and conditions, including the pre-determined purchase price, are fully disclosed and documented in a transparent and accountable manner. The goal is to provide tenants with a clear pathway to homeownership, empowering them to achieve their dream of owning a home.