What is a Lease-Purchase?

A lease-purchase is an agreement to rent a home and the option to purchase it with the closing sometime in the future. It comprises two agreements: A standard lease agreement and an option to purchase agreement.

A lease-purchase is a way for your family to live in the home that you intend to purchase prior to qualifying for a mortgage loan.

People sometimes may need a couple of years to repair credit issues. This is how our program can help. Ryland Portmann homes are available for lease-purchase giving you the exclusive right, but not the obligation, to purchase the home sometime in the future. Usually within one to three years. However, you may elect to exercise your option to purchase at any time.

A lease purchase is one form of owner financing.  Call us for details on other programs available.
 

How do I repair my credit in preparation to purchase a home?

During the one-to-three-year lease purchase period you should work with a mortgage broker to guide you through the credit repair process. After you have repaired your credit, you should be able to qualify to purchase the home through a bank or other traditional lending institution.

 

It may even be possible for you to convert from a lease-purchase to a refinance loan. Although there is no guarantee, we have seen this happen many times in the past and, if you can do this, it will save you money!

 

Do I need to make an up-front payment?

Yes, an up-front payment in the form of “option consideration” is required. The up-front/option consideration is not a security deposit or a loan down payment but will be applied against the purchase price when you close on the house. When you originate your loan, most lenders will directly offset the required loan down payment with the up-front/option consideration. The up-front/option consideration is usually 3-5% of the initial purchase price and is non-refundable, that is, if you choose not to purchase the home for any reason, your up-front/option consideration will not be returned. The up-front/option consideration is your commitment and our reassurance that you intend to purchase the home within a specified time. If you are unable to pay the up-front/option consideration in full, Ryland Portmann will work with you to develop a mutually agreed upon payment plan.

 

How is the monthly rent determined?

The rent amount is determined by the underlying mortgage and rental market conditions. Ryland Portmann rents are generally lower than fair market rents. We can provide evidence to your future lender of your on-time rent payments, which will help you secure a mortgage loan. Your rent must be paid on time, as defined in your lease agreement, so that Ryland Portmann can make the underlying mortgage payment including taxes and insurance.  If the lease-purchase agreement extends more than one year, it may be necessary to adjust the rent to reflect increases in taxes, insurance, etc.

Is it possible to reduce the monthly rent?

If you are able to increase your initial up-front/option consideration, Ryland Portmann will agree to reduce the monthly rent payments. Call us for details.

Do you offer rent credits towards the purchase price?

Our goal is to have monthly rents that are affordable. Ryland Portmann can offer a generous rent credit towards the purchase price for additional monthly payments above our below-market rents. Call us for details.

What will be the purchase price when I am ready to buy?

Your purchase price will be determined by market conditions or by pre-agreed upon terms in the option agreement.

To get the fair market value of the house at the time of purchase, you and Ryland Portmann may get two separate appraisals, take the average of the two, and determine the price.  

We can also establish a pre-determined annual increase using a percentage agreed upon by you and Ryland Portmann.
 

What are the benefits of a Lease Purchase program?

Here are just a few benefits of our lease purchase program.

1. A lease-purchase helps you to re-establish good credit and own your home.
2. A lease-purchase program allows you to live in your future home NOW!
3. A lease-purchase allows you to live in the neighborhood and school district of your choice.
4. Our lease-purchase program allows you to become part of the community.
5. Your rent money is oftentimes working towards the purchase of the home.
6. You have minimum cash out of pocket compared to when you purchase a home conventionally, where you must pay closing costs, prepaids and a down payment. With a lease purchase contract, you pay only first month's rent and an option consideration.
7. Credit problems will not hold you back.
8. Your move-in time is typically less than one week compared to conventional move-in times of one to three months from the time the offer was made.
9. Since you have given us option consideration, and you may be receiving monthly rent credits, there will frequently be very little additional money needed to come up with for a down payment at closing.
10. You have minimal maintenance responsibilities because large maintenance problems are delegated to us.
11. There are no lengthy escrows or mortgage approvals The decision to lease-purchase to you will be made at the sole discretion of  Ryland Portmann rather than by a lender which can take up to a month (or longer) to render a decision.
12. You have peace of mind. As long as you live up to your end of the bargain, you will have full control of the home and can maintain it or improve it as you wish (major improvements will require the permission of the landlord/seller).

 

What sort of homes do you offer for lease purchase?

Most of our homes are just a few years new. Almost all of our homes are located in nice, safe, cul-de-sac neighborhoods. Many are in swim/tennis communities.

We believe in buying nice homes in nice, clean, safe, kid-friendly neighborhoods.

How do I qualify for a Lease-Purchase?

We understand that your credit may be temporarily challenged through situations such as down sizing, high medical bills, divorce, bankruptcy, temporary loss of employment, etc. Ryland Portmann will look at your current situation and what you are doing to repair damaged credit. A lease-purchase is one way to help repair your credit and live in the home of your choice now. We also will review your rent history. Have you paid your rent on time over the past year? Have you had any NSF checks? Have you ever been evicted? Are you a good housekeeper? Are you a good neighbor? Would your current landlord re-rent to you?

What is the next step?

To help speed up the process please fill out and email or fax the on-line application that will help Ryland Portmann assist you in the lease purchase of your new home.  

CALL NOW...In A Few Minutes You Will Know If We Can Help!

770.819.8889