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HOW MUCH IS THE LEASE PAYMENT? The
amount of lease payment is approximately what your monthly mortgage payment will be when you finance the home
in the future. Thus, it includes PITI, Principle, Interest, Taxes and Insurance. When you go to finance the home, the
bank will want your rental history showing that your lease payment was at the same level (or more) as the mortgage payment
that you are trying to establish. This is a solid way to rebuild your credit for home purchase, and put principle into the
home before you get your own mortgage. HOW MUCH OF A DOWN PAYMENT
WILL I NEED?
That depends on your monthly payment, gross income and the price of the home. Most of our homes are
offered as non-qualifying lease-purchases. The range for the option/(downpayment) can be as low as $2,000 or up to $40,000
for most of our homes, in otherwords, 3-10% of the home's purchase price. Remember, we can accept borrowed funds and can give
you up to 90 days to make the entire down payment. Please recognize this is a down payment and is not
a security deposit, thus it is not returned to you if you default on either the Option or the Lease.
CAN I BUY THE HOME BEFORE THE END OF THE LEASE?
Yes, you can exercise your option to buy at anytime during the
lease period. We are want to sell you the home and will help you through the process at the time you choose to purchase
it outright.
WILL THE PRICE OF THE HOME GO UP?
Not over the term of the Lease Option. We
freeze the price of the home for the duration of the option (usually 24-36 months). At any time during that period, you can
purchase the home for the option price. By freezing the price of the home, you won’t be ‘shooting at a moving
target’ when you talk with the lenders.
AM I BUILDING EQUITY IN THE HOME?
Yes. We encourage
you to build equity in the home while you are leasing it. You can build equity in two ways. First, we give a $100-200/month
renters credit towards the purchase of the house if you are on time with your payment to us and depending on the value of
the house. Second, you can always add equity by submitting more funds with your rent. We also help you to build a paper trail
and good credit so that you can qualify for a mortgage when you go to a bank to refinance the home in your name.
HOW SOON CAN I MOVE IN?
We only show homes that are currently available. So if you see one of our
homes you can move in immediately unless a date is posted otherwise. We will continue to post homes that we have available.
However, be sure to let us know of your specific needs so that we may contact other investors for properties that meet your
desires.
WHAT IF THE PROPERTY TAXES GO UP?
We pay the property taxes and the Real Property Insurance
and it is included in the monthly note. However, if taxes go up, you as a home owner, or even a potential homeowner,
must be able to absorb those increases to quialify for a mortgage through a bank. Thus your rent note will need to be sufficient
to cover changes in property taxes just as a mortgage note would. Fortuantely, tax assessments are only every 4-5 years and
changes in your lease note would not be frequent based on tax increases. You will have to pay for your utilities, club
membership and any association dues, since you receive the benefits from those. You will also need an insurance policy for
your personal possessions.
WHAT KIND OF IMPROVEMENTS CAN I MAKE?
We want you to feel that the
home is yours. Depending on the home you can make improvements, however for major improvements we require that you notify
us and obtain any required local permits and follow the proper building codes.
CAN WE BUILD A DECK OR A FENCE?
Like we said above, we want you to make those improvements as long as you abide by neighborhood building regulations,
have the job professionally done and get appropriate permits. We ask that you inform us of your plans for building. You
should enjoy the benefits of home ownership.
If you have any other questions please feel free to give
us a call at 901-270-0746.
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