How it Works

Lease-To-Own Program

Our #1 Goal is help people purchase their own home. The reasons why some people do not purchase their home through a conventional mortgage are abundant (lack of down payment, low credit score, etc.), but our Lease-To-Own Program can work for any situation. In fact, some people recognize that they have more to gain by using our Lease-To-Own Program, even if they are already qualified for a home loan!

How does it work?

The Lease-To-Own Program uses just 2 documents: a Standard Rental Agreement and an Option Contract.

Standard Rental Agreement - this is just like the agreement you have signed for every apartment or home that you've rented in the past.

Option Contract - this document is what gives the future owner so much power. There are 3 important pieces of information that you should understand about this contract:

  1. You and you alone have the right to purchase this home during the 2-3 year lease, meaning that the investor cannot sell the home to anyone else. This protects your investment, as you continue to build equity.
  2. The purchase price is set in stone at CURRENT fair market value. So as the economy recovers and the housing market starts to come back up, you can still buy your home for the same low price. This could mean a significant profit for you!
  3. The amount of monthly credit that you earn is defined. This money will continue to accumulate each month and will be returned to you at the closing table, on the day this home becomes yours!

How does the Lease-To-Own Program compare to other options?

As you can see below, the Lease-To-Own Program is far superior to the two alternatives of renting your home or purchasing your home. The key differences are the amount of money you have to pay out of pocket and the rate at which you build equity.

  Rent Buy Lease-To-Own
Money Down $0 $25,000-$60,000 $2,500
Closing Costs $0 $3,000 $0
Monthly Payment $1,800 $1900-$2500 $1800-$2045
Monthly Equity $0 $250 Up to $500
Earned Equity after 2 Years $0 $6,000 Up to $12,000
Earned Equity after 3 Years $0 $9,000 Up to $18,000

Renting - In this chart, you can see that renting does have the advantage of requiring no money down (besides a 1-3 month security deposit), but it also leaves you with absolutely nothing on the day you move out. You're right back where you started!

Buying - In contrast, you'll notice that buying a home requires a significant amount of up-front money (large down payment, closing costs, inspections, title insurance, etc.), but DOES allow you to build a little monthly equity. However, the Lease-To-Own Program requires less than a tenth of the up-front money, can charge less in monthly payments, and provides more monthly equity!

Other Programs on the market

You may also have seen other advertisements for programs such as Lease/Purchase, Buying Subject-To, or even Lease-to-Own. Most of these programs offer a similar concept, but with much LESS benefit to the future owner and much MORE benefit to the profit-hungry owners.

Of course, every investor is trying to maximize their profits. However, some investors are more concerned with money than with people. Our program is designed to help people first, and keep our investors satisfied second. It is for that reason that our program is significantly more generous to the Lease-To-Own tenant.

Our Lease-To-Own ProgramThe other guys
Small down payment Down payment as large as the bank's
Up to $500 monthly credit As little as $0 monthly credit
Same fair market rent Charge a large monthly premium

As you can see, our Lease-To-Own Program offers significant benefits over all other options for becoming the owner of a new home. Please contact us today for further information and to discuss the current list of homes available in your area!

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