Community Development - Lease to Purchase
Planned for future
The Lease to Purchase program is a way for us to help you become a home owner if you are not ready or able to purchase right now, but will be in the next few years. Open Door Memphis will purchase a home you are interested in and work with you to do any renovations or repairs prior to you moving in. Before Open Door Memphis purchases a house, we will sign an agreement that will require a “down payment” from you which will be used toward the first month Lease and “Option Payment”.
After and renovation work is done and prior to moving in, we sign a “Lease to Purchase” agreement that specifies your monthly lease payment, how much money is saved monthly by Open Door Memphis from your lease amount to be credited to you for your closing costs, and the sales price of the home. The “Option Payment” and the “monthly savings” amount will be credited back to you for your closing costs when you actually buy the house. There will also be a time limit in which the “Option to Purchase” must be used. If you do not close on the house within this period, the “Option Payment” is forfeited to Open Door Memphis. At that point, a new Lease or Lease to Purchase agreement can be signed.
Prior to and during the time of your lease, Open Door Memphis will provide financial advice to make sure you are ready to close on the house. While you are leasing your home, repairs will be your responsibility. But, Open Door Memphis will be available to advise you on doing the repair or maybe even provide the labor with your help as a way of teaching you how to take care of your home.