Realty Funding Corp.

Qualifying for the LEASE WITH OPTION Program

You can be in the dream house of your choice in a matter of weeks without those large down payments and closing costs needed today to buy a house.  Our Program has three very simple qualifications highlighted below.  Once you have met these qualifications, we will place you immediately into the house YOU choose.

  1. You must have a reasonably good chance of securing mortgage financing during the next 24 months, the usual length of a Lease With Option contract.  We will basically review your credit, income and finances.  While you do not NOW have to qualify, you will need to qualify down the road.  The 24 months of the contract period give you ample time to repair past bad credit situations, create new credit sources, pay down liens and/or judgments and eliminate erroneous information on your credit report.  We will give you an in depth report of what needs to be done to raise your scores to where they will need to be.  If need be we will recommend a professional credit repair company that will work hand in hand with you to attain your desired results.  When the time comes, should you wish, we will recommend a licensed New York State Mortgage Broker who is adept in these credit challenged situations.  There is no charge to you at anytime from Realty Funding Corp. for any assistance we may provide in the pursuit of your credit repair and improvement.
  2. Housing Calculation: Your MAXIMUM allowable monthly Lease With Option payment can not exceed 30% of your family's GROSS reported monthly income.  If your family earns $6,000 in monthly GROSS income, your Lease With Option monthly payment can not exceed $1,800 ($6,000 X 30%).  Your GROSS reported monthly income includes salary, commissions, bonuses, child support, insurance payments, alimony, Social Security payments, disability payments, etc.  Non-Reported income can not be used for this calculation.  All income used for your housing calculation must be proven and verified.
  3. Liquidity needed: Cash needed for the Lease With Option transaction will average around 3.5%-4% of your desired home's Purchase Price.  The money is for one month's security deposit and the 2.5%-3% Assignment Fee.  Assume you wish to move into a house that has a Purchase Price of $180,000 and a monthly Lease payment of $1,500.  Calculate that you will need approximately $7,000 (4%) to move in.  This is for a $1,500 Security Deposit and $5,500 for the Assignment Fee.  Please remember that you will also need $1,500 on the first day of each and every month as rent during the Lease With Option contract period just as you would with any Rental or Lease agreement.

PLEASE Remember: The entire Security Deposit AND Assignment Fee is deducted as CREDTS from your Purchase Price when you buy your house. Thus you are simply loaning yourself this money when you enter into your Lease With Option Agreement.

Investors Self-Directed IRA's and Roths Realtors Loan Officers Mortage Brokers Florida/Vacation properties Owners and Sellers Qualifying for the Lease with Option program Tenants to Homeowners