Lease with Option to Purchase FAQs
1. What is the Lease With Option Program?
Our Lease with Option Program (the “LWO Program”) allows you to find a home that you want to rent from us initially, but who may also like to buy at any time within the next three to five years.
We believe that there are many households who may be thinking about buying a home but for whatever reason would like to rent at the current time.
You can lease the home for up to three to five years and you may purchase the home from us at any time at a predetermined price in accordance with the Lease with Option Agreement.
2. Who is eligible for the LWO Program?
We have certain minimum criteria for our program. Your household must have an annual income of $40000. You must have stable employment. We cannot accept you into our program if you or anyone in your household has a history of eviction or a pending bankruptcy. Everyone in your household will be subject to a criminal background check.
3. How do I apply to the LWO Program?
Complete the application, which requires certain information, including residence and employment history, for each member of the household. You also must provide income and asset verification for each member of the household whose income is to be considered in determining the rent approval amount in order for your application to be considered complete. If you are moving from a different state or starting a new job, we will need confirmation of your new job and income.
We take several factors into consideration when reviewing an application, which include household income, rent-to-income and debt-to-income ratios, rental and housing history, employment history, criminal history, and FICO® scores.
We will usually make a decision on your application within 1 to 3 business days of receiving all required information.
4. How much does it cost?
We have a one-time Application Fee of $35 (1 applicant) or $45 (2 applicants) as part of the application process. This Application Fee covers all applicants in the household and is nonrefundable.
5. Why might my application be denied?
We take several factors into consideration when reviewing an application, which include household income, rent-to-income, and debt-to-income ratio, rental and housing history, employment history, criminal history, and FICO® score. We consider the profile of the entire household when reviewing an application. If your application is denied, you will receive notification.
6. Do you own the homes shown on your website?
No. The homes shown on our website are listed for sale in the markets in which we operate. This list of homes automatically feeds into our website from a listing service and is updated on a regular basis. However, we cannot filter for certain criteria such as whether a townhome is or is not fee-simple so there is a possibility that a home shown on our website does not meet our minimum eligibility criteria. The information on available homes shown on our website is for informational purposes only and cannot be guaranteed by Dream Realty USA.
7. Is there a required deposit?
Yes. A deposit is required and is applied toward Lease Option Fee.
8. What happens after I move in?
You are our tenant, and we are your landlord. You have entered into a lease with us for one year and are bound to the terms of that agreement. Repairs needed to the property before move-in will be added to the cost of the home. Any repairs needed after move-in date are your responsibility.
9. Are the monthly rent payments that I make applied to the purchase price of the home?
Yes. A portion of the monthly rent payments based on the interest rate of the contract are applied to the purchase price of the home.
10. How do I exercise my Lease with Option?
You may notify us at any time that the Lease is in effect that you would like to exercise your Lease with Option. However, you must provide us with that notice in writing at least 60 days before you want to complete the purchase. Once you notify us that you want to exercise your Lease with Option, we will contact you to get the process started.
11. Can I buy a home in the middle of a lease term or do I have to wait until the end of the year?
You can exercise your Lease with Option at any time during your Lease. However, you must provide us with written notice of your intent to exercise at least 60 days before you want the sale to close. In addition, the closing date must occur before the end of the applicable Lease term.
12. Do you provide me with a mortgage or other financing?
We are not a mortgage company and we will not provide or arrange a mortgage loan for you. We cannot guarantee that you will be able to obtain a mortgage loan if and when you wish to exercise the Lease With Option.
13. Can I have pets in my home?
We do allow up to three pets (cats or dogs) with a max weight limit of 180 pounds total. There is a $300 per pet fee. This fee is due with the required deposit and is refundable in the event you purchase the home. Otherwise, it is not refundable.