The Path to Home Ownership

Just follow our 7 Steps To Home Ownership plan

Got 5%-10% Cash Down Payment?

Our Lease/Purchase program is perfect for you. If you have good steady income and monthly debt payments that are not overwhelming we can get you approved immediately.

Lease/Purchase Basics

Who is Lease/Purchase Program For?

It is designed primarily for 3 groups of Buyers:

Group 1.

Buyers who have minor credit problems which still need to be corrected. To get a loan you will need to upgrade your credit to “A', which typically means, old collections accounts must be settled or paid off, and you should have no late payments on your current credit accounts for the last 12 months preceding the closing of the purchase.

Group 2.

Buyers who don’t have enough cash to cover the downpayment and closing costs. Typically, mortgage companies require that you have about 5.5%-6% of the purchase price in your hand and they’ll finance the rest. In many cases they also allow you to receive a gift from a relative or even a friend for part or all of the cash needed.

Group 3.

Buyers who have been self employed for less than 2 years. The lender will require that you have at least 2 years of self-employed tax returns before they consider making you a loan. If you have been self-employed for more than 2 years, but you are writing off a lot of expenses and showing very little income from the business, you’ll need to change that pattern before you’ll get the loan.

Benefits Of Lease/Purchase

If you belong to one of these 3 Groups our program offers you 3 important benefits:

1. You buy yourself some time.

During that time you must work on whatever is stopping you from getting a loan today, your weak link. You must correct your credit, build up the downpayment, or work up a consistent income from self-employment.

2. You lock up the price of the home upfront.

During the term of the agreement the price of the home will not change. Yet the prices of homes in the Austin area lately have been growing at a rapid rate. If you just continue leasing where you are right now, you will likely discover that a year or two from today you will have to pay 10%-15% higher price for the same house you wanted to buy now. Why do that, when you have Lease/Purchase alternative?

3. You will already be living in the home of your dreams.

That's why you decided to buy in the first place, right? You got tired of apartment living and making your Landlord rich.

Common Questions And Answers About Lease/Purchase

Will The Rent Money Apply To Purchase?

Depends on the property. But we generally do give generous rent credits. Any rent or option payment credit always goes toward the purchase price of the house. However, this plan is based strictly on your performance... the payment is due ON the first of every month or you lose your rent credit and are charged 5% additional late payment. If you are late on your payments consistently then you are not ready to own a home of your own. This money counts toward your purchase price, not the downpayment your bank may require for your loan. Downpayment money must be saved by you separately.

Why Do You Require a Commitment/Option Consideration Payment?

Bottomline; We want to make sure your and our valuable time is not being wasted and we only want to work with SERIOUS home BUYERS. It should be understood that our goal is to help you PURCHASE a home; it is not our desire to RENT you a house for the long term. If you are serious about becoming a HOMEOWNER, please read on... Rest assured, this payment will be credited to the purchase price of the house. It is not lost unless you do not purchase the house from us at some point. This option consideration payment is not a security deposit. We do not require a security deposit. Security deposits are for renters, not buyers.

Who Will Be Responsible For Taxes & Insurance?

Until your loan is approved and purchase is closed, we are responsible for paying property taxes and having the house insured. After closing you will become responsible for paying taxes and getting your own insurance.

Is There A Warranty On Systems And Appliances In The House?

We do offer our own 30 days home warranty policy. After you take possession you have 30 days to use the house, run the systems in the home, check appliances, air conditioning, heating, plumbing, etc. to make sure everything works good. If you discover something is not working properly, we’ll send our contractors to repair it.

There are also commercial companies selling homeowner warranty insurance known as Homeowner Warranty Shield' that has a coverage of up to 1 year, and may be renewed. A lot of new homeowners buy a policy like that. It costs about $300 per year.

Who Will Be Responsible For Maintenance And Repairs?

While you are on a Lease/Purchase plan you are responsible for ALL repairs and maintenance under $150. All major repairs will be taken care of by the property owner.

Can I Buy Early, Before The End Of The Lease?

Yes, if you have your loan lined up, and enough downpayment money, there’s no reason to wait until the end of your agreement.

What Happens If I Don't Buy At The End Of The Lease?

You must buy the house by the end of your agreement. If you don’t, your agreement terminates and you lose you original downpayment and any additional money you have contributed towards the purchase. Depending on the situation, we may offer you a new agreement and terms so you can stay there. We do realize that not everyone will be ready within 12 months.

I Still Want To Buy, But Can't Get A Loan?

If, during the term of the agreement, you were late on your payments, or other credit accounts, if you incurred additional debt, or jeopardized your loan in some other way, obviously, you were not making a serious effort to get ready for the purchase. Therefore, we won’t give you a second chance.

If, however, you were on time and did everything you could, but still could not get financing, we will give you another opportunity. The price and terms may change, though, but we won’t ask you to move.

Can You Convert Me To Your Non-Qualifying Financing?

Possibly, if you can raise more cash for down payment, or if your budget allows you to make high additional payments towards equity. We do it on a case by case basis, depending on your Lease payments record.

How Long Does It Take To Qualify And Move In?

Once we have your application we typically can give you the answer in 1 business day. If you are quick, you could be moving into a house within a couple of days.

What Do I Need To Qualify?

For this program we normally require 3-5% of upfront“commitment' money - it will be applied towards your purchase price at the time of purchase. If you don’t have that much, check out our commitment money/option consideration installment plan below.