We do have properties that we manage that are available for lease/purchase (also known as rent to own). We wanted to provide some additional information for those that are interested in that option:
The monthly rental payment will vary depending on your down payment. The larger the down payment the smaller your monthly rent payment would be. The payment is comprised of a base rent rate, which remains the same throughout the term of your occupancy, as well as the actual cost of the insurance and taxes on the home. As these costs increase over time it will increase your payment, usually this increase is minimal.
Each property has a specific minimum down payment amount, you can of course pay any additional amount over and above the minimum. The down payment is in reality actually an “option fee” which means you are purchasing the right to purchase the house at a particular price (asking price less option fee, example: Sales price is $100,000, paying a $10,000 option fee grants you an option to purchase the home at $90,000) so it is not refundable. The base rent rate is calculated just like a mortgage would be (effective interest rate declines with larger down payments, further reducing your monthly payment) and just like a mortgage a part of your base rent rate is credited towards the purchase of the house. If you don’t pay it off early, either by refinancing or making larger payments along the way, you would own the house after making 30 years worth of rent payments.
Each property that is available for lease/purchase has a “calculator” at the bottom of the listing page that you can use to determine how much of the rental payment would be credited towards the purchase of the house.
The intention of lease/purchase is generally to give you time to get your credit improved to the point where you can get qualified for a normal mortgage, however you can use it just like permanent financing if you prefer.