The Definition of a Lease Option to Purchase:

Lease Option to Purchase, also known as Lease with an Option to Purchase (or Buy), is where the Seller & Buyer agree to lock in a sales price of a home on or before some future date. The Buyer and Seller enter into 2 basic contracts or parts:
(1) Lease or Rental Agreement and (2) Option Contract to Purchase Real Estate. The Buyer makes a non-refundable option deposit with Seller which may or may not be credited towards the agreed sale price. The Seller collects lease payments and also collects a second payment each month which builds credits towards the agreed upon sale price. At the end of the term, Buyer has the right to exercise their option to purchase but not the obligation to. However, the Seller is obligated to deliver the property should the Buyer exercise their option. If the option is not exercised then the Buyer will forfeit or lose the option deposit and any monthly credits.

Does the monthly Lease payment go towards the purchase price?
No. Only the option fee (down payment) and/or the additional monthly payments will be credited towards the purchase price.

How are Taxes & Insurance handled?
We will maintain homeowners insurance and pay the property taxes during the option period. After you obtain a loan for permanent financing it then becomes your responsibility.

Would I be able to purchase a Homeowner Warranty Policy for the Home?
Yes, definitely recommended, many new homebuyers do this as well. Usually the policy will cost between $300-$400 annually depending on the home warranty you purchase. Policies are for 1 year and are also renewable. These companies are in your Local Austin Yellow Pages. 

Of course, if anything happens during the first month that will be our responsibility. This will give you a chance to make sure the A/C & heating, sinks & plumbing, appliances & so on are operating correctly. If they are not we will do the repair for you during the first month.

What if the home needs Maintenance And Repairs after I move in?
With our Rent To Own or Lease Purchase program you would need to handle ALL repairs and maintenance. Furthermore, if you would like to make additions or upgrades (deck, pool, etc.) feel free to do so as well. We just ask that you check with us beforehand so we are aware & you are aware of the risk since you haven't established permanent financing yet.

A word of caution: Whenever you are buying a home you should have an inspection done. We recommend you hire a professional home inspector to inspect the home and provide you with a report. We do it on all the homes we purchase and it would be wise for you to do the same.

Do I have to wait until the end of the Lease option term to purchase or refinance the home?
No, if you have obtained a loan before the end of the Lease option period you may exercise your option at anytime. You may also be able to convert to our Owner Financing program.

The same thing applies to our Owner Financing program if your are ready refinance to permanent financing you have obtained then feel free to do so at anytime. You don't have to wait until the balloon date.

OK, my Lease option term is over & I don't want to Buy, what now?
The Lease option is a contract. At the end of the contract, you can either buy the home or walk away. However, if you do not exercise your option to buy the home you will lose your option fee (down payment) and any other payments made as credits to the purchase price (i.e. Down Payment Assistance payments).

OK, I want to Buy but still can't obtain financing yet, what now?
We handle this on a case by case basis and usually we will have to change terms and price. We may offer to extend the option term for an additional option fee or change the purchase price and terms. If you have established enough equity or saved enough for your down payment we may offer you our Owner Financing program. This way you don't have to move and get more time to get a loan.

We will try to help if we can however you have to show us that you tried and made an effort to help yourself first. That means making payments on-time with us and other creditors, maintaining stable employment, etc. Otherwise, we will not be able to offer any other options as you really didn't make a true effort to purchase the home at the end of the Lease option term or balloon date.

What is the difference between Owner Financing and Rent To Own/Lease Purchase programs?
A Lease option gives you the Option to Buy the house at a locked-in price for a certain period of time, the Lease option period. The option gives you control over the property and locks in your the purchase price of the home. However, you will still have to obtain a loan by the end of the Lease Option period or convert to our Owner Financing program.

Until you obtain a loan or convert to Owner Financing program you will not be able to receive tax breaks and write-offs, pay down your mortgage to build more equity, and other various financial benefits enjoyed by homeowners.

Would You Consider Changing my Rent To Own/Lease Purchase Program to Your Owner Financing?
Sure we would, if you have established a good payment history and your down payment is close to 5% we will consider the Owner Financing program for you. Again, we handle this on a case by case basis.

How much Time will Take To be Approved and then start to Move In?
Usually 1-2 business days after you have submitted a completed application we can let you know if you are approved. Once approved we can go to closing and you can move into the house right after closing.

How do I get Approved?
We are looking for a 5% option fee or down payment for our Rent To Own/Lease Purchase program or our Owner Financing program. This will be credited to the purchase price of your home and any other closing costs associated with your home purchase. Do you have less than 5%, you might still qualify for the Lease to Purchase program through Travis County.

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