How much money is required for a ‘down payment’?

The money that you pay at the time you move in to the home is called the ‘lease purchase payment’. This payment is what guarantees you a purchase price based on today’s values for a specified period of time. Typically the lease purchase payment will be 1% of the purchase price of the home.

What happens to my lease purchase payment?

The lease purchase payment is applied to the purchase price of the home. For example, if you are purchasing a home for $120,000 and put down a $1200 lease purchase payment, you will be purchasing the home for $118,800 plus Rent Credits. If for whatever reason you are unable or decide not to purchase the home, your lease purchase payment is nonrefundable.

How long do I have before I can Purchase the home?
Upon receipt of your lease purchase payment, you can purchase the home as soon as you are able to.

When must I purchase the home?
We typically create a three year purchase agreement that is signed to coincide with a three year rental agreement. You can purchase anytime within three years.

How much of my monthly payment is applied toward my purchase price?
A rent credit of $200 per month will be applied to your new home. The rent credit will be applied to the purchase price of the home.

What is a rent credit?
Rent credit is where the rent to own Seller sets aside a certain percentage or dollar amount of the monthly rent you are paying, and applies it to the purchase price or down payment. In return for this rent credit, they want you to pay your rent on or before the first of each month. Now your rent money is not completely lost, you are having a portion of your rent applied to the sales price or the down payment to help you qualify for a loan later.
Don’t forget that your lease purchase payment for the rent to own home is applied to the purchase price or down payment as well. By accruing rent credits, you are buying the price of the house down. If you were renting, all your rent money is lost forever.

Will I get the rent credit back if I do not purchase the home?
No, the rent credit is used only to apply toward the purchase of your new home

Who pays for the real estate taxes and for the homeowner’s insurance?

Both real estate taxes and homeowner’s insurance on the structure are paid for by the current owner until such time that you exercise your option to purchase the property. It is a good idea for you to continue to keep renter’s insurance on your personal belongings.

What happens if I decide not to purchase the home?
The lease purchase payment is NOT refundable and the rent credits would go away if you decide not to purchase the home.

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