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Leasing with an option to purchase (Rent-To-Own) is an excellent method to move from renting a home to being an owner. It offers many advantages over the traditional methods of purchasing a home.

No large down payment required. Instead you pay an amount up-front called “option consideration.” This amount, generally about 3% of the purchase amount, locks in the purchase price during the term and gives you the exclusive legal right to purchase the property. However, you are not required to purchase. If you exercise the option, the option consideration is applied toward the purchase price. If you do not exercise and buy the house during the term provided, the monies are NOT refundable. This compensates the investor/owner for keeping the property off the market during the term and for locking in a purchase price, regardless of whether home values increase.

Rent credit. If you decide to purchase, an agreed-upon portion of your monthly rent is applied to either the purchase price or the down payment. This allows your rent money to be working for you, instead of being thrown away. And you profit from any appreciation during the term.

No up-front loan qualification necessary, however a minimum down payment is required. In most cases, we only require income verification, credit check and references. In addition, when you decide to exercise your option to purchase, we work with many different lenders, so we can work with you to help you obtain the best financing for the best terms.

A FEW COMMON QUESTIONS AND ANSWERS

Q: Why should I pay option consideration when I can just rent by paying a security deposit and get it back when I move?

A: When you rent, your rent money is not working for you; it just disappears month after month. The option consideration allows you to move toward home ownership while still keeping your payments affordable.

Q: What if I decide I don’t want to buy the property?

A: You are not required to exercise the purchase option; however, the option consideration is NOT REFUNDABLE should you decide not to buy.

Q: What if I need more time before buying at the end of the term?

A: In certain cases, it might be possible to renew the lease for another term. This would require payment of additional option consideration, and could require that the purchase price be renegotiated.

Q: What about utilities, property taxes and homeowner’s insurance?

A: All utilities are the responsibility of the tenant/buyer. Until you purchase, all taxes are paid by the seller. In addition, we will maintain insurance on the structure and grounds, however we do require that you purchase renter’s insurance to protect your contents.

Q: What about maintenance?

A: The tenant/buyer is generally responsible for up keeping and repairs.