Q & A
HOW DOES THE LEASE-TO-OWN WORK?
One easy way to think of a lease-to-own is like a normal purchase. There is a commitment to buy the property, but instead of closing the transaction within 30 days, the closing will occur several months or years later, allowing you to lease the property up until the closing date.
WILL MY LEASE PAYMENTS COUNT TOWARDS MY CREDIT SCORE?
You will have the option to setup a rent reporting account with one of our partners. They specialize in verification of rent payments along with reporting your rent payments to the credit bureaus to boost your credit.
WHAT IS THE MOVE-IN DEPOSIT?
The move-in deposit includes the earnest money and non-refundable assignment fee associated with that specific lease-to-own or owner financed home. Homes4Assignment is under contract for each home listed on our website. The assignment fee goes towards assigning our exclusive purchase rights, title, and interest in our lease-to-own or owner financed contract to you, the future homeowner. Together, the earnest money and assignment fee are used to kick start the move-in process and secure the property for you and your family.
WILL THE MOVE-IN DEPOSIT BE CREDITED TOWARDS THE PURCHASE OF HOME?
When you are ready to buy the home, at the end of the lease period, a portion of the move-in deposit will be applied towards any closing costs and/or down payment requirement by a mortgage lender.
WHAT STEPS ARE INVOLVED IN SCREENING APPLICANTS INTERESTED IN THE LEASE-TO-OWN PROGRAM?
a. Applicants complete a pre-screening questionnaire for the property.
b. Applicants undergo an affordability analysis to determine if/when they are able qualify with a bank for financing the property
c. We conduct a Meghan’s Law registered offender search, background check for credit and criminal history. Conduct reference checks (employer, past landlords, etc.).
d. We review and analyze the collected information to determine if the applicant is a good fit for the lease-to-own property and program.
WHAT ARE THE BASIC REQUIREMENTS TO QUALIFY FOR THE PROGRAM?
-3x the rent in monthly (gross) income
-Move-in deposit
-550+ minimum credit score*
*Not required for Owner Financed homes
-Stable employment
-No evictions within the last year
-No felony convictions within the last 4 years
-No pending bankruptcy
WHAT ARE THE BENEFITS OF LEASING-TO-OWN A PROPERTY?
There are many benefits associated with the lease-to-own model including property appreciation, time, mortgage rates and flexibility. Our lease-to-own program gives buyers the opportunity to increase their credit score and savings to be able to qualify for a better mortgage rate in the future. Our clients also have the opportunity to enjoy living in the home and neighborhood before buying. Did we mention you will not have to make any payments on our lease-to-own properties for the first 30 days?
WILL I BE RESPONSIBLE FOR REGULAR MAINTENANCE ON THE PROPERTY DURING THE LEASE-TO-OWN?
Yes, as the future homeowner you will be in charge of regular upkeep and maintenance of the property.
WILL MY LEASE PAYMENTS BE CREDITED TOWARDS THE PURCHASE PRICE?
For all properties listed as Owner Financed, your lease payments will be applied towards the purchase price of the home.
SHOULD I CONTINUE TO SAVE FUNDS THROUGHOUT THE LEASE TERM TO GET FINANCING SECURED FOR THE LEASE-TO-OWN PROPERTY?
Yes. Most mortgage lenders (i.e., banks, credit unions, online lenders, or mortgage brokers) will require a down payment, for a mortgage loan at the time of making a good faith loan application. Any earnest money provided for our lease-to-own homes will be credited towards any closing cost and/or down payment requirement by a mortgage lender.
WHAT HAPPENS ONCE MY LEASE IS ENDING FOR THE LEASE-TO-OWN?
Prior to lease expiration, you will make a good faith loan application for the financing the property with a mortgage lender.
DOES HOMES4ASSIGNMENT OFFER ANY ASSISTANCE FOR CLOSING COSTS?
For specific properties, Homes4Assignment will negotiate a seller’s contribution towards closing costs, on your behalf. The seller’s contribution will go towards the sale of the home in the form of discount points, help with closing costs or other expenses.