ABOUT THIS PROGRAM
AND HOW WE CAN HELP YOU
Lease To Own Programs allow you to find a home that you want to rent, but may also like to buy in the next up to five years. We believe that there are many households who may be thinking about buying a home, but for whatever reason would like to rent at the current time. You can lease the home for up to five one-year terms, and you may purchase the home from us at any time at a predetermined price.
STEP BY STEP GUIDE
With the Lease to Own program, you can just rent. As a tenant in this program, you still have the option to buy the home your living in.
In the event you don’t want to buy the home, due to outside factors, at the end of any lease term you can and have the option to walk away from the home.
SO WHY RENT FROM LEASE TO OWN?
On average there are double to triple the number of homes for sale than for rent.
The rent is set for you on paper for the next 5 years so there are no large rate hikes.
Within the 5 years of eligibility, you have the option to purchase the home.
84 Percent of Americans See Homeownership as a Good Investment
Have a low Credit Score? The minimum score for the program is 580 for anyone living in the house over the age of 18.
Have Low Income? The minimum for income with this program is $65,000 for Colorado. This way you would be able to afford rent int the 2 major metro areas in Colorado, Denver, and Colorado Springs.
Have a Bankruptcy? As long as it has been discharged, Bankruptcy is not an issue for the program.
No down payment? The security deposit, similar to every other rental is 2 months rent. No 20% down needed for the program
Total Cost is the price paid for the home, closing costs, make-ready, and repairs/maintenance costs. Total Cost is used to determine the resident’s Right to Purchase prices. A sample is highlighted below:
Purchase Price – $200,000
Closing Costs – *$3,000
Make Ready and Repairs/Maintenance Costs – $7,000
Total Cost – $210,000
MONTHLY RENT INCREASES
Each year, a resident’s Monthly Rent increases by no more than 3.75% over the previous year’s Monthly Rent. For example, if the Monthly Rent for Year 1 is $1,400 per month, the increase for the next year is $50/month (i.e., $1,400 x 1.0375)*.
Year 1 – $1,400
Year 2 – $1,450
Year 3 – $1,500
Year 4 – $1,560
Year 5 – $1,620
RIGHT TO PURCHASE
Each year, the Right to Purchase Price increases by 3.5%-5% (depending on the region).
In the example, if the Total Cost of the home is $210,000 and if the Right to Purchase increases by 5% (i.e., Prior Year Purchase Right Price x 1.05)* then the Purchase Right Price for Years 1-5 is as follows:
There are additional costs that the resident will incur if they exercise the Right to Purchase such as closing costs to purchase the home, including transfer taxes, attorneys’ fees, title insurance, and the cost of a mortgage loan. As a result, actual total costs to exercise the Right to Purchase will vary.
* Rent will round to the nearest $10. Right to Purchase Price will round to the nearest $100.
NEW TO COLORADO?
Coming from another State or Country? That means your not familiar with the neighborhoods, the cities, the people. Moving to a new state can be daunting. On the bright side, the program gives you the opportunity to live in an area and make sure you like it before you buy it. Don’t like Denver Traffic, move into a home in Castle Rock or Colorado Springs. Your dream home is up to you.
TOP REASONS TO CHOOSE LEASE TO OWN
Live in the rental for up to 5 years before making the choice to move or buy.?
Letter of employment with Pay Rate and Start Date is sufficient for Income Verification.?
Quick Close ability helps with moving time frame and getting the home before you arrive.?
Once you move in, you’re able to leave at the end of any of the 1-year lease terms. This way you’re not tied to an area for too long.
Let us help you find your DREAM home today
SOCO Dream Homes Team