Examples

In 2003 John and Mary Smith and their daughter, Samantha, had just moved to the area. John was a carpenter and Mary had recently found a job as a waitress. They liked the area so they decided to buy a home close to work and in a good school district. They found the home they wanted and fell in love with it. Because they had some credit trouble in the past and Mary had just begun her job, they were unable to qualify for affordable financing. John and Mary had two choices: they could buy the house with a very high interest rate or they could rent until they repaired their credit. Unfortunately the housing market was increasing at 20-25% per year, and they may have never been able to afford to own their home if they delayed their purchase.

The Smiths contacted LeaseOptionProgram.com and asked for help. They completed a brief application and informed LeaseOptionProgram.com of the amount of down payment and monthly payments they could afford. The Smiths were qualified through LeaseOptionProgram.com for a home valued at up to $200,000 based on their $5,000 down payment and a total monthly payment of $1,700. The Smiths learned that 100% of their down payment and $300 of their monthly payment would be applied to their future purchase of the home. The length of their agreement with LeaseOptionProgram.com was two years. The Smiths could exercise their option to buy the home at the end of the two year term or sooner without incurring any additional fees. The Smiths’ purchase price of $242,000 was based on 10% per year appreciation. The Smiths were happy with the 10% per year rate since their area had been appreciating at well over 20% per year. Any excess equity in the home would be theirs to keep. John and Mary Smith were on their way to realizing their dream of becoming homeowners.

Over the two-year option perdiod, the Smiths participated in the LeaseOptionProgram.com mandatory Credit Monitoring Program and implemented the many credit improvement suggestions made by the program. Their improved credit scores and history of on time payments to LeaseOptionProgram.com enabled the couple to qualify for an affordable mortgage. In 2005, John and Mary Smith became homeowners after exercising their option to buy the home for $242,000. The market value of the home was $288,800. The additional equity was for the Smiths to keep. They saved $46,800 by purchasing their home through LeaseOptionProgram.com. They were also able to add their closing costs to their new affordable mortgage enabling them to buy the home with no additional money out of their pockets.

Submit your application today, and find out how LeaseOptionProgram.com can help make home ownership an option today!

Following is an illustration of the numbers used in the above example.

Lease Option Parameters
Down Payment	$5,000
Monthly Base Payment	$1,400
+ Monthly Credit	$300
= Total Monthly Payment	$1,700
Maximum Qualified Home Value⁽¹⁾	$200,000

⁽¹⁾	Including closing costs.

Purchase Parameters
Purchase Price⁽²⁾	$242,000
Accumulated Down Payment ($5,000 down payment + 24 monthly credits of $300)	$12,200
Maximum Mortgage Needed⁽³⁾	$229,800
Example 2-year Home Market Value⁽⁴⁾	$288,800
Example Equity in Home ($288,800 - $242,000 + $12,200)	$59,000

⁽²⁾	Excluding closing costs. Option to purchase home may be exercised at the end of the two-year term or sooner.
⁽³⁾	Maximum mortgage needed is based on 95% of the purchase price of the home. Customer may choose to make an additional down payment at time of purchase, thereby reducing the amount of mortgage needed and the monthly payments.
⁽⁴⁾	Based on 20% per year market appreciation. This number is used for illustration purposes only. Market appreciation will vary and is outside the control of LeaseOptionProgram.com.

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