1. Are Lease-to-Own Homes real?
Yes, Lease-to-Own is a legitimate path towards Home Ownership.
In fact, this path is becoming more popular each year with hundreds of thousands of individuals/families seeking alternative paths to Home Ownership due to financial position, credit, work history or legal status.
Lease2OwnAmerica™ has a proven, transparent and easy-to-follow program; we operate in multiple U.S. states serving thousands of individuals/families who are enjoying a path to Home Ownership.
2. How do I find Lease-to-Own properties?
You can search and find Lease-to-Own properties through several avenues and a growing number of organizations offer this unique, affordable and friendly path to Home Ownership.
Lease2OwnAmerica™ patrons visit us as ‘walk ins’ at our Oklahoma City Headquarters, reach us through Social Media and call us via friends and referrals.
But the easiest and quickest way to look for your Dream Home is to use our custom website.
Our property inventory showcases homes typically ranging in price from $50,000 to $550,000 and represents cities in many U.S. states.
To see a list of available homes, click here.
3. Do I need a realtor to Lease-to-Own?
No, you do not need a Realtor to Lease-to-Own. Lease2OwnAmerica™ employs trained, dedicated Leasing Specialists who are waiting to work with you!
To connect with a trained and seasoned Leasing Specialist, click here.
4. Can Realtors help me find Lease-to-Own homes?
Yes, you have the option of using a licensed Realtor to help you find a Lease-to-Own home. Lease2OwnAmerica™ has a valued, long standing relationship with the Realtor community. In fact, we will compensate your Realtor when they refer you to our program! Click here for more information.
5. How do you Lease-to-Own a home?
To Lease-to-Own a property, first, browse the Lease2OwnAmerica™ website and social media platforms for a desired home in your area. To initiate the Lease-to-Own purchase within the Lease2OwnAmerica™ program, connect with us and/or fill out the simple application and get approved.
Then, upon finding your Dream Home, pay at least 5% of the agreed upon Purchase Price (which never increases or escalates – unlike our competitors), make the monthly Lease Payments and annual Option Payments per the Agreement schedule.
You just entered our most popular Home Ownership program.
See helpful Explainer Video.
6. What are the steps to Lease-to-Owning a home?
The Lease2OwnAmerica™ team is committed to our customers’ success in Home Ownership. We strive to deliver more value, better service, and constant innovation through our popular program.
See our Three Easy Steps for entering the Lease2OwnAmerica™ Lease-to-Own program.
Step 1. Get Approved
This very simple form is where it all starts. It takes less than two minutes to complete and then you’ll be on a pathway to Home Ownership. That’s how we do it. You could be in your new home in as little as three business days.
Click Application here.
Step 2. Find A Home
Search through thousands of listings featured on Lease2OwnAmerica™ website. We are always here to help answer any questions you may have.
Step 3. Move In
As you live in your new home, you’ll gradually be working toward Home Ownership. Our clients typically qualify for their mortgage or contract for deed in less than four years.
Click on ‘How it Works’ for a comprehensive explanation.
7. What does it cost to Lease-to-Own a home?
Good News! The Lease2OwnAmerica™ team wishes to set you on an affordable path to Home Ownership!
The cost of Lease-to-Own is directly correlated with the Purchase Price of the Property. In our popular program, the property’s Purchase Price, monthly Lease Payment and annual Option Payment never increases or escalates during the Agreement. What makes our program unique is the Purchase Price actually decreases as we apply the annual Option Payment!
Click on ‘The Math Matters’ for a comprehensive explanation.
8. What are the benefits to a Lease Option (Lease-to-Own) program?
The popular and proven Lease2OwnAmerica™ program allows individuals to move into their home through a Lease Agreement. While you make your monthly Lease Payments and annual Option Payments, you are building credit and positioning yourself for a traditional mortgage.
Our clients enjoy credit repair assistance, do not worry about taxes and insurance, and enjoy centralized collections with on-line payments and a working relationship with knowledgeable helpful professionals.
The Challenge: Many individuals living in the U.S. cannot receive a traditional mortgage loan (own their own home) for one reason or another. Traditional lenders turn down applicants daily due citizenship challenges, poor credit or no credit, self-employment, debt-to-income ratios and a variety of other reasons. Lease2OwnAmerica™ is here to help.
Benefits to individuals within the Lease2OwnAmerica™ program:
- Lease2OwnAmerica™ monthly Lease Payments include tax and insurance
- Lease2OwnAmerica™ monthly Lease Payments often match ‘rent prices’ in the same area
- Final purchase price of Tenant/Buyer’s home is comparable to property comps in the same neighborhood
- Lease2OwnAmerica™ ‘Purchase Option’ payments never escalate (increase) and are offered at zero interest
- Lease2OwnAmerica™ has adopted a user-friendly Credit Check much less stringent than traditional banks
- Lease2OwnAmerica™ Tenant/Buyers qualify to own their own home in three to four years (average)
- Lease2OwnAmerica™ Tenant/Buyers earn a $500 bonus when referring a successful Friend or Family Member to the program
Check out ‘Key Considerations’ for more information.
9. Is there value in my annual Option Payment?
Yes, while not technically ‘equity’, Option Payments made under the Lease2OwnAmerica™ Agreement have value. These payments apply towards the Purchase Price of your home and ensure that our Tenant/Buyers do not owe MORE for a home than what the home is WORTH.
Check out How It Works.
10. How important is my credit score?
Lease2OwnAmerica™ qualifies applicants on simple terms with the intent of helping thousands of individuals living in the U.S. own their own homes.
Because our organization is not FDIC regulated or under the same restrictions as banks, credit unions and mortgage lenders, we have a 98% client approval rate.
While we do check credit scores, they are not the primary factor in our underwriting process.
In short, we aim to match individuals with their Dream Home by becoming a Lease-to-Own Tenant/Buyer…and provide a transparent, easy and straightforward path to Home Ownership.
11. How much is rent in a Lease-to-Own home?
The rent (monthly Lease Payment) is largely determined by the Purchase Price of the home. You can assume the rent (monthly Lease Payment) to be within 8% and 12% of the property’s Purchase Price [sample: monthly rent on a $100,000 Purchase Price may reflect $1,000 per month].
Importantly, we find Lease2OwnAmerica™ program’s Lease Payments (also known as ‘rent’) near or below rent rates managed by landlords in any given area. The path of Home Ownership is not burdensome or difficult through our proven, transparent and affordable Lease-to-Own program.
Check out Experience the Difference.
12. Is Lease-to-Own safe?
Real estate transactions of all types can have risks and it is the consumers responsibility to educate themselves before entering into any contract. Lease2OwnAmerica™ takes the position that it is our duty to fully inform and make clear our Agreements, the benefits of the Program AND the consequences that can come from not adhering to the terms of the Program.
Furthermore, Lease2OwnAmerica™provides consumer education geared toward the Lease-to-Own industry as a whole. We want you to be informed and comfortable with any Lease-to-Own Agreement!
For a more detailed explanation, download free e-book.
13. How do I qualify for a Lease-to-Own home?
Every applicant has different circumstances; however, there are usually set underwriting qualifications that must be met to enter into a Lease-to-Own program. At Lease2OwnAmerica™, an applicant’s qualification is measured by underwriting criteria and we have a 98% approval rating.
Qualifying factors are weighted more on income, rent history and work history than credit score and criminal record. In most cases, the household income must total 3X or more than the financial obligation of the monthly Lease Payment plus have the ability to make the annual Option Payment.
14. What does it mean to Lease-to-Own a home?
Leasing-to-Own a home means that you are currently leasing a home with the intent of buying it (ultimately converting to a Contract for Deed or traditional mortgage).
At Lease2OwnAmerica™, you enter an Agreement to pay the monthly Lease Payment (rent) and the annual Option Payment. By making these payments, you are leasing your way into a favorable position (20% paid toward agreed upon Purchase Price) versus renting.
Bonus: By paying on time, you are often building or restoring your credit score.
Check out How It Works.
15. What is a Lease-to-Own option for a home?
A Lease-to-Own option is a Lease-to-Own contract, through which you lease the home for a certain period of time from the seller (often a Lease-to-Own organization) with the option to purchase the home at the end of the agreed upon schedule. However, you are not required to purchase the home.
The Lease-to-Own option for a home is a form of Lease-to-Own, which means, in addition to monthly Lease Payments (rent), you pay an annual Option Payment that is applied to the original and agreed upon Purchase Price.
The Lease Option is what ensures the unilateral contract between the buyer and the seller, in which the seller must sell to the buyer at the agreed upon terms and cannot sell to anyone else; however, the buyer merely has the option, not the requirement, to buy at the end of the Agreement schedule.
For a more detailed explanation, download free e-book.
16. What is a Purchase Option?
A purchase option is a type of Lease-to-Own contract in which you have the option, but not the requirement to purchase a home. It means that you have the option to purchase the property you’ve been leasing before the lease ends, and the seller has the obligation to sell the property to you if you choose to purchase it within that timeframe. It’s important to note that the seller cannot sell the property to anyone else until after your contract has expired. This is possible because you pay an option payment, which ensures your option to purchase the home.
If you buy the property, the option fee is credited to the purchase of the home, if you choose not to buy, the seller keeps the option payment instead.
For a more detailed explanation, download free e-book.
17. Can I pay off my Lease Option early?
Yes. Many Lease-to-Own organizations – including Lease2OwnAmerica™ – do not penalize the Tenant/Buyer if they accelerate the Option Payment schedule of the Agreement. In fact, by advancing the financial schedule you will reach the 20% “trigger’ earlier than projected. This early fulfillment of the Lease Option places the Tenant/Buyer into a position to either convert to a Contract for Deed or secure a traditional mortgage
Several clients have entered Lease2OwnAmerica’s program, made improvements to their home, accelerated their financial schedule and sold their home for a profit!
18. Are Lease-to-Own homes more expensive?
Leasing-to-Own a property can be more expensive, equally expensive or less expensive than the alternatives. When considering the monthly Lease Payment, you may pay less, the same or more each month than the renter next door.
Importantly, ANY extra payment over and above the monthly Lease Payments (including the annual Option Payments) per the Lease-to-Own Agreement goes towards the Purchase Price of the home.
At Lease2OwnAmerica™, the property Purchase Price you agree to never increases or escalates. Check out The Math Matters.
19. Can you Lease-to-Own a house without a down payment?
In lieu of a “down payment” most Lease-to-Own programs require an Option Payment (5% of Purchase Price is typical) to Lease-to-Own the property. This is much like a down payment and the Option Payment is used to immediately reduce the Purchase Price. At the end of the Lease-to-Own Agreement (achieving the 20% ‘trigger’), you may enter a Contract for Deed or secure a traditional mortgage.
For a clear and concise example, see The Math Matters.
20. Can you Lease-to-Own with a previous eviction?
Yes, you can Lease-to-Own with a previous eviction. There are no specific industry requirements to Lease-to-Own and this is not an FDIC regulated industry. Therefore, you can Lease-to-Own a home with a previous eviction.
Each individual seller or Lease-to-Own organization has their own criteria for approving Tenant/Buyers. The seller or Lease-to-Own organization may or may not perform a background or credit check on their Applicants. Previous evictions may or may not impact the decision-making process.
21. How can you Lease-to-Own with low income?
When you have low income, consider these options:
- Explore homes in the lower price point range. Lease2OwnAmerica™has Leased-to-Own homes in the $75,000 price range with monthly Lease Payments as low at $800.00 Plus, Lease2OwnAmerica™ Tenant/Buyers are not responsible for taxes and property insurance.
- Consider ‘pooling’ money with co-Tenants (e.g. spouse, partner, family member). The Lease2OwnAmerica™ underwriting team has a history of successfully ‘pooling’ or combining incomes for same-property Applicants desiring Home Ownership.
Meet with a Leasing Specialist to better understand how to shop for a home that you can afford using your current income and check out How Much House Can I Afford?
22. When should you Lease-to-Own?
You should consider Lease-to-Own when you:
- Have credit challenges that disqualify you from a traditional mortgage.
- Have a citizenship status which does not comply with traditional mortgage underwriting protocols.
- Have found a home that you would like to Lease-to-Own while ‘test driving’ the property.
Many people enter a Lease-to-Own program with the goal of establishing or restoring their credit while living in their Dream Home. Lease2OwnAmerica™ has built a program that keeps our Tenant/Buyers on the path towards Home Ownership while providing a method of paying down the homes Purchase Price — while in the program!
Check out Key Considerations.
23. Can I see a visual of how Lease-to-Own works?
Sure! See our helpful Explainer Video.
24. I want more information on the Lease-to-Own Industry
Sure! For a deeper explanation, common terms and best practices of Lease-to-Owning your own home and the Lease2OwnAmerica™ program, download this FREE e-book.