Lease with a Right to Purchase Program
Are you close to being able to buy a home but aren’t quite ready? Did you just move to Windermere, Ocoee, Winter Garden, Dr Phillips, or Metro West and aren’t sure where you want to live? Do you need to rent right now but really want to buy a home in a couple years?
I work with an amazing rent-to-own homes program (also known as a Lease with a Right to Purchase). If you qualify for the program, you get to pick a house that is currently listed FOR SALE based on your approved rent. An investment firm purchases the home in an approved community and you get the opportunity to rent that house.
You are only obligated to a 1 YEAR LEASE term at a time, with a right to renew your lease each year for up to 5 years. You have the right to purchase the home at any time during your residency, at the pre-set price. If the home value appreciates above this price each year and you choose to purchase it, you realize a financial benefit. If the value of the home declines, you can choose not to renew your lease and walk away without penalty.
There is no obligation to buy and there is not a non-refundable option fee. The biggest benefit is you will have access to a lot more homes to rent than what the market shows. It will generally be in better condition than a rental in same neighborhood, because it’s on the market to sell. So it needs to be in sell condition.
Rent will be slightly higher than average rent in area, because they are taking on risk. They are buying the home and the only guarantee is that you will be in the home for 12 months. AND You have the right to purchase the home at any time during your residency, at the pre-set price. If the home value appreciates above this price each year and you choose to purchase it, you realize a financial benefit. If the value of the home declines, you can choose not to renew your lease and walk away without penalty.
If you are going to be renting anyway, then this let’s you rent a nicer home that you have the option to buy. So you can see that it is a great program depending on your financial situation.
HOW THE PROGRAM WORKS
The program provides responsible households with a clear and transparent path to homeownership through its Lease with a Right to Purchase Program. This program provides [three/five] years of rent certainty with only a one-year financial commitment on the lease.
If you want to own a home but cannot currently qualify for a mortgage, or if you would prefer to rent a home now with the goal of purchasing it in the next three to five years, then this program may be for you. The program doesn’t focus exclusively on your credit score. The full credit profile of your entire household is taken into account when they review your application.
As with a standard lease agreement, the program requires you to sign a lease for a year and make a security deposit. Unlike a standard lease agreement, you will have renewal options providing [three/five] years of rent certainty and the right to purchase the home at a price established when you enter the Right to Purchase Agreement, in accordance with the terms of the Agreement. You can also select the home that you want to live in from those eligible and available for sale in approved communities – enabling you to live in a neighborhood today where you might not otherwise find a suitable home to rent.
The program buys homes in specific approved communities, contact me to see what communities are currently in their program. We will guide you in finding the right home in the right community. Once you approve the purchase price in your Right to Purchase Agreement, that is the price at which you may purchase the home during the term of the lease, in accordance with the terms of the Agreement, whether the home is later appraised at a higher or lower value. If you do not purchase the home as provided in the Agreement, the program may rent or sell the home to others when your lease ends.
Your initial lease is for one year, so your financial commitment is limited to one year. Your lease is renewable every year for [three/five] one‐year periods, and you have the right to notify the program if you don’t want to renew the lease. Your full security deposit will be returned as provided in the lease if you decide to leave the home at the end of a lease period and have been in full compliance with the lease.
RIGHT TO PURCHASE AGREEMENT
Your Right to Purchase Agreement gives you the right to purchase the home you selected at a predetermined price for every year of your lease, as long as you have been in compliance with the lease, Agreement and other documents. You are under no obligation to buy the home.
Contact me to learn more about an innovative Lease with Right to Purchase program. Unlike many rent-to-own home programs or lease options, there is no obligation to buy and no non-refundable option fees.
The Minimum Requirements to Qualify for the rent-to-own program:
• Annual household income of $70,000+
• Stable employment
• No history of eviction or other landlord issues
• No pending bankruptcy
• No disqualifying criminal history
• Minimum 7 months of clean credit
• Minimum 525 credit score
• 2 months of rent payments available in cash
As you can see this is a great opportunity for someone that wants to live in a specific neighborhood, but does not quite know if they are ready to buy just yet. Contact me today if you are interested in a rent-to-own home in the Orlando area and you meet the minimum qualifications listed above.