Lease To Own

Lease to Own

The Credit Crisis has put many Buyer(s) who would have qualified for a mortgage as little as a few weeks ago, into the underwriter's reject file. No one knows when the situation will work itself out. Both Buyers and Sellers are in a holding pattern.

Lease-to-Own (sometimes called Rent-to Own) opportunities are not new. However, the terms for homes advertised with New Century Real Estate as Lease to Own (LTO) differ, sometimes greatly from what you might find in the paper or on Craig's List.

We are in the business of assisting Buyer(s) with purchasing; and Owners with selling real estate. We are not in the business of placing prospective buyers into properties that we know will not close. Our LTO program requires a background check before an offer is submitted. Perfect credit isn't required, but individuals with credit problems that can't be repaired within one year will be turned away.

The mechanics of the program are straight forward. A contract to purchase is signed by both the Seller & Buyer with a provision allowing possession prior to closing. The terms of the possession are governed by a written lease that is attached to the purchase contract. New Century's LTO program requires that both Loan Application ( which includes the Appraisal) and Inspection be performed prior to possession by the Buyer(s).

When the Buyer(s) makes Loan Application, the lender will come back with a list of requirements. During the lease period, the buyer must clean-up their credit file as required by the Buyer's Lender. The lease period is typically 12 months.

Earnest Money is non-refundable after the Appraisal and Inspection deadlines are met. A portion of the monthly rents, call the "premium rent" is credited to the Buyer(s) at closing. Our LTO program is designed so that the Buyer(s) will have a 3% down payment at closing. In some cases, the Seller may even pay all or most of the Buyer's closing costs.

All real estate transaction have some element of risk. If the property significantly increases in value, that is good for the Buyer and bad for the Seller. Conversely, if the property decreases in value, that is good for the Seller and bad for the Buyer. If the Buyer walks away and the property doesn't close, the Buyer is out the Earnest Money and all premium rents paid to the Seller. The Seller has to go back to square one and sell the house all over again.

We are ready and able to assist you with purchase of one of our Listed properties participating in this program, yet there is no requirement that you must work exclusively with a Broker employed by New Century Real Estate. Have your broker call us and in just a few minutes we can have him/her up to speed.

Some other good information to know:
You can use any Mortgage Broker registered with the Colorado Real Estate Commission.
There is no requirement that you must have perfect credit, just repairable credit.
The terms and conditions of this program were designed with extensive consultation with lending professionals to maximize the probability of a successful closing.