Understanding LOP Pricing
If you have started on the path to owning your home through Vision Property Management’s Lease Option Purchase program you may have some questions on the application process and the lease contract. During your process you will work one-on-one with a specialist, a closer and finally an account representative. Any of these people will be happy to assist you in understanding the process and how your contract will work.
When you initially find your property the advertisement or representative will advise you of the list pricing on the property. This will include the overall price of the property, the minimum down payment on the home and the monthly payment for the property. This is not the final word on pricing and you will have an opportunity to discuss those numbers further. The overall price and the monthly payment could possibly be reduced for a strong customer. The down payment listed will always be a minimum and could rise a minor amount, based on credit or income.
Our pricing is flexible and we are happy to work with responsible buyers. Your personal Closing Coordinator will communicate with our underwriting department as your representative and work to get you the best contract terms available to you. Completing your application in a timely manner, performing due diligence and offering a solid plan for repairs will be beneficial and help your closer to secure a satisfactory principle price and monthly rate.
Throughout the 7-year term of your contract you are making payments towards the principle purchase price of your property. Each monthly payment includes a credit amount that is going to the final purchase price. At the end of the 7-year term this credit amount is multiplied by the number of payments made, added to your option agreement fee and subtracted from the overall price of the property as listed on your contract. You are given the opportunity to purchase the property at the now reduced principle price of the home.
This program offers many advantages when compared to a traditional rental. While your monthly payment will not apply to purchase in full you are actively building equity and pushing towards a lower price for your final purchase option. Property taxes and insurance are rolled into the monthly payments you make as well, freeing you of those burdens throughout the year or from facing a hefty lump sum at the end of the year.
Ultimately this purchase option gives customers the opportunity and time to build their credit while reducing the final cost of purchasing their property. When the time is right VPM will assist those customers in making the conversion to a traditional mortgage or obtaining the necessary loan to complete their purchase.
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Properties available through the traditional Lease Option Purchase program offered by Vision are typically sold in an as-is condition. Many of these homes are fixer-uppers, offering potential home owners the opportunity to truly create their dream home while working towards ownership.
In today’s market renters are paying a premium without ever having the option to own the home they pour the years and funds into.