Lease Option Definitions
Estimated Current Value

This is just an estimate of the property is worth.

What is the future value? There are two different ways a rent to own contract can be written:.

  • Appraised Value: Value determined by a licensed appraiser that neither you or me know.
  • Set Value: Some sellers will state what the price will be when the lease expires.
Asking Down
This non refundable"Option Fee" will be converted to a down payment at the end of the lease and when you exercise your option to purchase the property. If you have less than the asking down but can pay more than the asking monthly, we can probably work something out.
Asking Monthly
This is the total monthly payments you will be making. This does include HOA fees. It does not include utilities (gas, electricity, water, telephone, cable, or satellite.)
Asking Rent Credit
This amount is added to your down payment. At the end of your lease, all of your rent credits and "asking down" are converted to a down payment for a conventional loan.
Contract Pending
If you see this in the "Availability" area, it means someone has a contract in their hand but hasn't coughed up the asking down. My rules are simple: First person with money gets the property.
Lease Period

This is usually flexible. Generally speaking, it's not in your best interest to go more than a year. If your FICA is more than 550 I recommend a 1 year lease. If you don't know what your score is, this is a good time to find out. You can pull your own credit at these credit reporting agencies:

http://transunion.com

http://equifax.com

http://experian.com

FYI - Every time someone else pulls your credit, your score drops. New car dealerships will sometimes pull your credit several times!!!
Price - Lease End

There are 2 ways to structure the price at the end of the lease:

  • Appraised Value: Value determined at the END of the lease by a licensed appraiser.
  • Set Value: A value set today.
There are advantages and disadvantages to both. Also every property is different.