Lease Program – A New Path to Home Ownership

Lease program is the contemporary option toward house ownership. It gives you the flexibility to live inside the house of your dreams while you collect maximum funds to purchase it from the lender. If you are someone who is on the lookout to buy a dream house of your own choice but are lacking with finances, then lease program is the right choice for you. With HALO lease program even if you are short with finances you can still make use of other choices that can help you buy your dream house.
Key lease options
There are many lease options that one can opt in order to make a clear path to the house ownership afterwards.

1.     Rental Agreement
A lease option first is a lease agreement. However there are two points that need to be considered while signing the rental agreement. One, the rent for the house should be justifiable according to the current market price. The rent must not be high because of the lease option component. Rent and option fee are two different things. People often misconceive this that if they are paying rent they do not have to pay the option fee. Option fee covers the value of buyer’s right to purchase the home. Second, the term of the option must give the buyer enough time to save a down payment and repair the financial score.

2.     Rent Credit
In most lease agreements, the buyer receives a credit that will go to house owner. Though this credit is non-refundable. So it does not go back to the buyer’s account if he/she decide not to buy the home. But it will reduce the overall purchase price of the house if the buyer choose to buy the house.

3.     Mortgage
Mortgage is another choice to finance the dream of getting a new house of your own. For this, the you as a buyer needs to submit a down payment and reserve some considerable amount of money that will ultimately open his/her way to the house ownership. But what about those who find it difficult to opt the mortgage option? They can still achieve their dream of getting personalized house? If you are not sure how long it will take you to qualify for a loan, talk to a mortgage broker before entering the lease deal. They will be able to give you a better idea of how long it will take to get your finances in order to qualify for a home mortgage. Usually, a period of two to three years are common for rent to own family homes.

Lease to Own Program

There is a new type of residential lease program designed for the people who do not have sufficient balance but are committed to repairing their credit in order to buy a home so they can further be qualified for the mortgage finances. It’s an alternative approach, where the buyer can rent a house for a certain amount of time (say for up to 12 months) before the lease expires. Lease programs mainly consist of two parts. The standard lease agreement followed by the option of buying it which is also known as lease to own homes.

How to Meet the Requirements for the Lease Program?

For getting qualified for the lease program, first a valid mortgage allocating officer will review your financial case. After reviewing the finances, the officer will do cross examining and if you match with the conditions that you have mentioned while filing for lease programs and the mortgage team thinks that you are good enough to qualify for mortgage by the time your lease ends. Then you can qualify for the lease program.
 
This means that in most of the cases, as long as the buyer continue to make his/her payments on time and do not make any poor credit decisions, and follow the guidelines set out by the credit repair specialists strictly, they can easily get qualified for a mortgage by the end of their lease.

What if buyers do not get qualified?

If buyers think they cannot make it up to get qualified for mortgage. Because they fear they cannot stay on target to pay necessary lease funds, the option payment is non-refundable. Such terms and conditions are mentioned on the lease agreement.

HALO- Home Access Lease Opportunity

HALO is one of its kind lease venture started for the people who have big dreams but are lacking with finances. In other words, HALO is a new type of residential lease program designed for the ones who want to buy a house today, but do not currently qualify for mortgage financing. For aspiring buyers who are committed to repairing their credit, HALO provides them with the opportunity to lock in a price on their dream home, rent it for up to 12 months, and then purchase it from HALO when they are approved for a mortgage.

However, HALO reserves every right to extend buyer’s lease if they continue to purchase the home but it is just they need a little more time and flexible schedule to get qualified for a mortgage first. In this case, a new review of their finances will be conducted to assess if they have been making their payments on time or no.

Else wise, comply with the steps necessary to repair the credit. Depending on the outcome of this review, HALO (at its individual decision) may extend the contract on a month-to-month basis for buyers on individual basis. If an extension is granted, then the purchase price and rent may also increase accordingly for successive buyers. In order to put all this in a nutshell. At HALO we believe in three simple steps
1. Choose your dream home
2. Lease it from HALO
3. Buy it when you are ready