Rent to Own and “Lease Options” and “Lease Purchases” were popular in the 70’s and 80’s, but have gotten a bad rap in recent years due to some fraudulent activities, such as wrap around mortgages.
The good news is that there is now a legal, trustworthy and completely transparent way to get into a home, as a tenant, and eventually buy that home at an agreed upon price.
Through a RE/MAX Approved supplier, Home Partners, responsible households are provided with a transparent path to homeownership through its Lease with a Right to Purchase Program. If you are still working to rebuild your credit, save for a down payment, or need to have two years self employed tax returns under your belt before you buy, this is a great program for that transition period. It’s also great for people moving to the area who are waiting for their house to sell elsewhere.
With the assistance of your RE/MAX Capital City Realtor you will find a home listed as an approved property through Home Partners. These are homes that are currently on the market being sold by regular sellers. Home Partners buys the property from the seller for cash. They then become the landlord and you, with a refundable deposit paid, will rent the from Home Partners for up to 3 years. After year one, you can purchase the property at a price or continue to rent.
This “Try Before You Buy” program is perfect for those who want to avoid moving twice and just want to feel settled. It’s also a good way to secure a purchase price on a home now and know exactly what you will pay for the home next year or in two years when you are ready to get a home loan. The good news is that you can change your mind about buying the home. There is no obligation and you can get your deposit back (barring any damage) when you decide to end the lease at the end of year 1, 2 or 3. The Lease terms are market value and the deposit is generally two months rent. The amount of the rent and the amount of the purchase price for each home are all spelled out ahead of time so there are no grey areas.
There are pros and cons of course and everyone’s situation is different. If you would like to meet to discuss this program and if it’s right for you, contact your favorite agent through the agent link on this site.
Contributor: Christina LeGrande, RE/MAX Capital City