Lease to Own
Program Details
Our Lease-to-Own Homeowners program gives you the ability to purchase a home today without the hassle of having to meet the qualifications required by typical banks or lending institutions. This program was designed to assist families having trouble obtaining conventional financing in today’s strict lending environment.
Using this program, you are your own landlord the day you move in; you will never again have a landlord telling you what you can or cannot do. You can personalize or renovate the property just like any other home owner.
Many companies offer “Rent to Own” or “Lease to Own” programs, however we believe every deal should be win-win for everyone, and we pride ourselves in being able to customize our program to fit your unique needs.
This is how it works:
Our program was designed to help families qualify for traditional financing as fast as possible and realize the dream of home ownership without needing large down payments or a perfect credit history.
The lease you will sign is based on a 1or 2 year term with the option to extend for an additional year. In our experience, most families are able to qualify for traditional financing after 2-3 years. We help the process by repairing your credit and showing lenders that you are able to make the payments on time and in full.
The purchase price is negotiated at the time of your lease signing and is guaranteed for the term of your lease. The guaranteed price is based on the projected end value of your home when the lease expires based on the condition you receive it in. This allows you to benefit from any equity appreciation from renovations or remodeling around the house.
Your Option Deposit (down payment) will be credited towards the purchase price of the home and viewed by any traditional lender as an acceptable down payment when you exercise your option to purchase. In an effort to make the lease payments more affordable, you have the option to reduce your monthly payments by making a larger Option Deposit. For each additional $1,000 we will reduce your monthly lease payment by $15.00 giving you an 18% yearly savings.
In comparison with traditional methods of financing, this gives you roughly double the monthly payment reduction.
Your monthly payments are all inclusive: property taxes, building insurance, condo fees (if applicable), lease payments and your Lease Option Credits are included in one easy payment. The Lease Option Credits are are credited towards your down payment as well as your original Option Deposit when you exercise your option to purchase. The Lease Option Credit varies depending on the property you select but is usually at least 20% of your monthly payment.
If you have made all of your payments on time and worked with us to repair your credit. We will do everything possible to enable you to purchase your home. We will put our mortgage broker to work for you and provide documentation showing your payment history.
What Happens at the End of the Lease Term?
At the end of your lease with Fair Home Buyers, you will have a variety of options to help you make the final step towards home ownership.
1) You will be able to obtain traditional financing without any additional assistance from Fair Home Buyers
For most of our clients this will be within reach. Between any additional equity appreciation in your home and the generous monthly Lease Option Credits- most of our clients have no trouble obtaining traditional financing right away. You simply buy the house from Fair Home Buyers at the agreed upon price. It’s that easy!
2) You are qualified for financing, however the bank is asking for a higher down payment.
Banks and mortgage markets don’t always do what we expect them to and sometimes this means our clients need a little extra help to make the deal go through. If this happens to you then you can take advantage of our Down Payment Top Up Program, Fair Home Buyers will provide the extra funds needed (up to 4% of the value of the home) to help you exercise your option to purchase. This money will be provided interest free for 1 year.