A lease-option (aka lease-to-own or rent-to-own) home purchase involves a lease agreement and an option agreement to purchase a home within a specific period time and under certain conditions.
The lease is based on a 1 or 2-year term with renewable annual terms for up to 5 years. You can purchase the home at anytime during your lease without penalty. The price of the home is outlined in a scheduler, and it increases with each annual renewal and is pro-rated according to the month that you buy.
An initial option fee is required when you enter into a lease-option agreement and will be credited back to you at the time of purchase. A portion of your monthly payments will also be credited back to you at the time of purchase. The program works like a savings program that helps to increase your down payment while giving you time to improve your credit score. We will work with you and a mortgage broker to help meet the requirements for a mortgage.