Rent to Buy? Thinking of buying a home in the next five years? Consider renting with an option to purchase

Rent To Buy Options
Would you like to find your home, but you're not quite ready to buy? A lease with a right to purchase program may be a good fit for you!

This program allows you to 1) Find the house you want to live in now, 2) move in, and 3) if you’re ready within five years of the initial move-in, purchase the house.
Your monthly rent is not applied to the cost of the home, but the agreement ensures you have first dibs on the property should you decide to buy it within five years (Unless you’re in Texas, where it’s three). The right to purchase does not obligate you to buy the home, but if you do decide to buy, you can begin the process at any time in the five-year window. 

If you’re interested to learn more, this is how it works ...

Call Nate for more specifics to see if this program will work for you. Call 571-494-1245 or email

Step 1: You apply for the program and obtain approval 

There are many reasons people go the route of leasing with a right to purchase program: You may be repairing your credit, relocating, a first-time home buyer, or simply concerned about the current housing market. 

If you think this program may be a good fit for you, you can get the approval process going online and receive a decision within two days.

First, there are a few requirements:
  • At least 18 years of age
  • Annual income of at least $50,000
  • Stable employment
  • No history of eviction and no pending bankruptcy
  • Acceptable criminal history (Every person in the household will subject to a background check)
If you meet these requirements, you must provide proof of income, verify you can pay for two months’ rent and submit a $75 application fee. This information will be evaluated to reflect household rent-to-income and debt-to-income ratios, rental and housing history, and FICO scores. 

Step 2: You pick your home

If you’re approved, here comes the fun part of picking your home using the program’s online system. 

The home you pick needs to fall within the following criteria, and you’ll be working with a real estate agent to help you: 

  • It must be in a  community approved by the program (based on a variety of factors including high school attendance rates and any nearby features that may negatively impair a property’s value)
  • The listing price must be between $100,000 and $500,000
  • It must have a minimum of two bedrooms and lot of three acres or less
  • A single-family home or fee-simple townhome
  • A traditional or bank-owned property
For each home you view, you’ll be provided with some very helpful numbers: 1) What you’ll pay in rent for year one, year two, etc. and 2) What the home will cost to purchase in year one, year two, etc..

Once you’ve picked your home, our agent will submit your property for review. If your home is approved (You'll receive an answer within 4-6 hours) you’ll be provided with a schedule of rent and purchase prices for each lease term. NOTE: The rent increases by 3.75% each year, and the purchase price of the home increases by 3.5% each year. 

If you agree to the terms, it’s time to start packing! The program will pay for a complete home inspection, and you’ll need to provide the first month’s rent (pro-rated depending on move-in), and a two-month deposit. 

Step 3: The last step of the process is buying your home.  Once you've moved in, you can buy the home at any time. 

A few things to keep in mind: 
  • You are required to rent for a minimum of one year, but can move out after a one-year lease term without penalty
  • You may renew your lease for a total of five years but no more.
  • The total move-in process can take up to two months: This includes the time required for the program to buy the home on your behalf, and inspect the home
  • You must have an Experian credit score of 525 or above
  • The program does not provide you with a mortgage, and makes no guarantees that you will be able to obtain a mortgage
If you think this program is a good fit for you, call Nate to talk more about this program. We’ve helped hundreds of buyers find the right home, and we believe this is an excellent program to get you into the home you love. Call us at 571-494-1245 or email 

Written by Charity Corkey - 12:45 Team