Watch Out!

What to Look For When Selecting a Lease Option Program.

You’ve had troubles in the past and are ready to turn your life around. The last thing you need is to throw money away and be in the same position you are in now in a year. Here are the top five things to look out for when shopping for a lease option home.

1. Entering into a Lease Option Contract with someone who doesn’t want you to exercise the option. It’s unfortunate but true. Like anything else, there are lease option programs out there that are scams. They prey on people who are in bad situations and simply look at your option money as extra profit. The contracts are structured in a way that 95% of the tenants could never purchase the home at the end of the term. They want you to move out, so that they can collect the option money from someone else. If the landlord doesn’t talk to you about credit repair and the steps you will need to take to get in the home, don’t walk…run!
2. Accepting an Option Price that is Far Above Fair Market Value. This is how many of the unethical programs out there get you. In fact just yesterday, I saw an ad for a two bedroom home where the option price was $189,000. I did some research and the value of the home was close to $100,000. Clearly the landlord is simply trying to scam the people out of the option money, because even if the tenant is willing to pay that for the home, no bank would ever finance it!
3. Waiting Too Long to Begin Credit Repair! Credit Repair is a process. You must start right away!
4. Continuing the same habits that caused you credit troubles in the beginning. If you continue to spend more than you make, then no program can help you get back on track. You must be willing to make changes—either commit to earning more income or reduce expenses.
5. Not saving for a down payment. The reality is that no one knows where the mortgage market is going and it is better to be safe than sorry. Hopefully your rent credit will be enough, but why not give your family the security of know that if you had to put money down in two years, you could.

Now more than ever, Americans are seeking alternatives to conventional bank financing to obtain their dream of home ownership.

While there are a variety of creative financing options available in the marketplace, it is imperative to understand the true structure of the financing to ensure that it will put you in a position to actually own the home.

Properly structured, lease options, sometimes called rent to own, can offer a phenomenal opportunity to buy a home, build equity, get credit for rental payments, rebuild credit and participate in a home's appreciation.

For this reason, it is important to work with a professional company who is truly looking to improve your quality of life by positioning you to be able to own the home. All Lease Option agreements are NOT created equal. It is a very complex document including terminology like option, rent credits, option price, option money and must be structured properly or you can end up paying significant amounts of money for a home you will never own. Other important factors are the current status of your credit report and the time that will be necessary to qualify for conventional mortgage financing.

Frequently Asked Questions

 

Qualifications

 

Q.    You state that your program is No Credit Qualifying.  Why do I have to make an application?

A.    While our lease option program is no credit qualifying every applicant must qualify for our program.  We are not in the eviction business and don't want to be.  It doesn't do us or you any good to take up-front Option money and then put you in a home that you can't afford or that you won't be able to qualify for prior to expiration of the Option.

 

Q.    What are you looking for to qualify for your program?

A.    We look at a number of things.  First and foremost, we are looking for people who truly want to become homeowners.  There are numerous Lease Option programs out there that simply want to take your option money, rent to you for a year and then for you to move out so that they can repeat the process.  This isn't us.  We want to help you and your family achieve financial success and become homeowners!  This is why we require that you sign up for a credit repair program.  Secondly, we are looking for your ability to pay for the home.  You must be able to verify that you can afford the payment and have steady income.

 

Q.    Why do you pull our credit?

A.     There are two reasons.  First, we need to make sure that we aren't getting you in over your head.  We want to build solid long term relationships with you.  The last thing we want is for you to be overextended with other debt and not be able to afford your home.  The second is that because our lease option program is truly designed to help you become a homeowner, we need to understand what it is going to take to make that happen.

 

Q.    I make a good income, but can't verify it in traditional ways.  Does this mean that I can't qualify for your program?

A.    No, not at all.  We can look at non-traditional sources of verification.  The key thing that must be considered is that because Stated Income Mortgages are a thing of the past, we need to ensure that steps are taken so that you can purchase the home in two years.

 

 

Home Buying Service

Q.    I would really like to participate in your program but you currently don't have a home that meets my needs.  What are my options?

A.    You have two options.  You can visit our site frequently and hope that we acquire a property that meets your needs, or you can enroll in our Homebuyer program.

 

Q.    How does this program work?

A.    First, we need to get an application and qualify you for our program.  You can apply and pay your application fee online.  Once you are qualified for this program, we will get a retainer from you.  Each situation is unique, but our typical retainer is $1600, which is what other reputable companies charge for this service.  Within two days of receiving your retainer, you will be put in contact with a realtor who will provide you with a list of homes that are eligible for our program.  Once you select a home, you will be responsible for any earnest money that is required to place a contract on the home.  Of course, this is completely refundable should the offer not be accepted and goes towards your purchase price.

 

Q.    Does any home qualify?

A.    No.  Because we sell the home to you at fair market value, we need to buy the home under market in order for our investors to make a profit.  As such, we are typically looking for distressed sales and short sales.

 

Q.    What is the retainer for?

A.    While we have your best interest at heart at all times, we need to make money to stay in business.  When we collect money from a client upfront, we create a team to help them find and move into their dream home.  We compile a team of real estate agents, investors, lenders, appraisers, and inspectors to pull this off for you.  All of these people would not be happy to spend time working for someone who isn't serious about following through with the purchase.  So, we ask for a deposit to show you are serious.  Once we make an offer on a property, we become financially liable for the deal and begin to incur expenses directly related to that home.  If something goes wrong and you change your mind we must be protected.

 

Click a link below for more FAQs on the

•  Benefits of our Program and            

•  Transaction Highlights that detail the terms of the contract. 

We can help you!

 

Are you ready?

If your answer is yes, click Apply Now! to begin the journey to make your dream come true.

Everyday we help people just like you realize their dream of homeownership.