Bloomington, IN Rental Homes and Condos
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Lease To Own Your Next Home


Learn more on how to lease to own your next home.

We understand that in today's real estate market that buying a home is harder than it used to be. Lenders are more picky and are requiring people to have better credit, larger down payments, longer time on the job, and other more stringest requirements.   Some of our rental properties are owned by people who would be interested in selling their home rather than just lease it.

What is Lease to Own?

A lease with an option to buy is a situation where you have a willing Seller/Landlord and a Buyer/Tenant.  There are different ways to do this, but the way we have found is best for both parties is to have 3 agreements drafted and agreed to:

  1. Option To Purchase  Real Estate: this is an agreement where the tenant/buyer is giving the right to buy the home during the "option period" which can be 1-3 years.  "Option money" considerartion is paid by the Tenant/Buyer in the amount of 1-3% of the purchase price of the home.  If you "exercise" (buy) the home in at some point during the "option period" then the money is credited to you at closing where it can be used as part of the down payment or pay closing costs.  If you do not buy the home for some reason, then the Seller/Landlor keeps it.  We use the Bloomington Board of Realtors' standardized form that was approved and is used by most REALTORS in the State of Indiana.
  2. Purchase Agreement: This is the agreemetn of the price, terms and conditions of the future sale.  We go ahead and draft this up at the beginning so there is no negotiation or disagreements about price/repairs/etc. later between the Seller/Landlord and the Buyer/Tenant.  We use the standard Purchase Agreement used by the Bloomington Board of REALTORSand many of the Realtors in the State of Indiana just like if you were going to buy a home from a REALTOR.
  3. Residential Lease : This is the customized lease with the rent, security deposit, any pet deposits, and the other terms like you might see when you rent a house without a lease with option to purchase. Some times there will be a "rent credit" where some of the monthly rent is credited to you at the future closingof the property.  It helps the Buyer Tenant save up money for the down payment and closing costs.  The amount varies but typically is about 10-20% of the monthly rent. 

Give us a call at 812-360-3460 or email mkleinba@homefinder.org if you would like more information or would like to discuss these options furher

 

 

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