JSC Rent To Own Homes

December 1, 2008 

The Chicagoland Buyer's Choice Program

How the Buyer's Choice Program Works
Simply start by contacting us, and we'll discuss the type of home and price range that works within your budget. We don't worry about your current credit scores as this program will provide ample time to improve them. We only require a minimum 7.5% option fee (down payment) on the home you choose and a verification of income demonstrating your capacity to make the monthly rental payments. Your paid option fee is 100% applied toward the predetermined option purchase price.

After a brief interview to determine your needs, we guide you through the home shopping process. You may search for homes with our Realtor until you have found that perfect house you can call home. Or you can begin by shopping on-line or visiting open houses or homes for sale by owner. This usually takes anywhere from 1-30 days depending on your search.

Once you find that perfect home, JSC will make the purchase offer and negotiate with the seller on price, terms and closing date. When the negotiations are complete and a deal is reached, you and JSC will meet to finalize the Rental and Option Agreements and you are required to make the option fee payment to JSC at that time. Your lease will begin the same day we close on the home purchase. This usually takes 2-5 days depending upon scheduling the meetings.

The closing date is usually 21-30 days after we finalize a purchase contract with the current home seller. The entire process typically takes anywhere from 30-60 days.

The option agreement terms for your Buyer's Choice home are generally calculated according to the following formulas (they may vary depending upon taxes, assessments, etc):

Option Price: 11% over current list price for the first year, add 6% for the second year and add 4% for the third year.

Option Fee: minimum 7.5% of the current list price

Monthly Rent: Current list price * .009

Monthly Rent Credit: 15% of the monthly rent payment

This option price will be fixed over the term of the agreement so no matter how much the home appreciates in value over the term, the price will not change. Rental costs are roughly the same as you would pay on a new mortgage, including escrow for taxes and insurance.

EXAMPLE: You find a home listing for $200,000. You seek a 1 year option agreement term. To estimate your future option price, rent and rent credit, apply the formulas above. In this example, your option fee would be $15,000 ($200,000 x .075), the one year option to buy price would be $222,000 ($200,000 x 1.11) and your monthly rent would be $1,800 ($200,000 x .009). You have the potential to earn rent credits for each on-time rent payment of $270 ($1,800 x .15).

Now let's fast forward for one year and you choose to exercise your option to buy. Here's how much you would need to buy out your option contract:

Option Purchase Price $222,000

Less upfront paid option fee $ 15,000

Less earned rent credits (12 x $270) $ 3,240

Net option price after credits $203,760

Notice we credit 15% of every on-time monthly rent payment as a credit toward reducing the option price! Let your rent money work for you and build equity-like credit before you own the home!

If you are serious about improving your lifestyle, your credit ratings and finding your true dream home now, complete the application and send it in today!

Get started

• We'll analyze your situation and be able to tell you up front how we can help you.
• Complete our application
• Based on the location and kind of home you need, we'll call and/or email you the homes that realtors are selling in your target areas.
• We'll tell you the amount of the monthly payments and down payment. We'll review with you what your future income should be for typical financing
• Before you know it, you'll be living in a beautiful home in a great subdivision. YOU can pick the home that YOU want to move into. The entire realestate home market is available to you!

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