Frequently Asked Questions
What is a lease purchase agreement?
A lease purchase agreement allows a prospective homebuyer to rent a property for a set amount of time with the obligation to purchase that property at the end or within the specified time period at a predetermined purchase price. The tenant holds the exclusive right to purchase during that time period.
How does Crescent's program work?
Crescent buys the home of your choice and leases it to you for up to two years. During those two years you will have the option to buy at a predetermined purchase price in the first or second year. We specialize each lease purchase agreement to help you meet your financial goals and to put you in a position to secure financing to purchase the home.
Why enter a lease purchase?
If you are having trouble securing financing as a first-time home buyer, self-employed, or facing financial hardships a lease purchase may be a good option for you to get into a home. If the buyer does not have a qualifying credit score for a mortgage, a lease purchase agreement can give the buyer time to repair their credit score, pay off debt, and fix other credit problems.
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The buyer has a chance to purchase a property in the future at today's prices and has the potential to build equity if the home value increases above the agreed upon purchase price. If the buyer isn't quite ready to buy but is worried the home's value will increase in the next two years, the lease option could be a good choice.
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The program also gives you the convenience of living in a home that will be yours and not having to move again. The tenant can offset those moving expenses and hassle by buying the home they’re in.
What are the requirements to qualify?
Crescent has flexible qualifications for our program but makes sure it is financially feasible for you to secure financing by the end of the lease period and be able to purchase the home. We look at several factors including household income, debt to income ratio, and other factors like rental history. We cannot accept applications with evictions on their record. Applicants will also be subject to a criminal background check.
Is there a deposit required?
Yes. We require a lease purchase deposit starting at as low as 8% of the purchase price, dependent on multiple factors. Your deposit amount will determine what we can approve you for. When you execute the purchase option the deposit is applied to the purchase of the home. A portion of that deposit will be a nonrefundable transaction fee ($6,000 for homes below $500k & $10,000 for homes above $500k). If the purchaser fails to exercise the purchase option, the full deposit will be forfeited.
Will credit affect my approval?
No, while we do look at credit history, it is not a primary factor in our approval process. We know that everyone has faced unique situations and our program is a great way to actually improve your credit and financial position during the lease period.
How do I choose my home?
After your application is accepted you will be approved for up to a certain amount based on your income, deposit, and financial situation. We then work with you and your realtor to find active listings in your target area that work for you!
Does Crescent make cash offers?
Crescent does make cash offers in most situations, making your offer more competitive and reducing the time it takes to close if need be.
Are rent payments I make applied to the purchase of the home?
No. Rental payments are not applied to the purchase of the home. You are required to pay the full predetermined purchase price when you execute your purchase option.
How much will rent be?
Monthly rental payments will be determined largely on the home you choose, although it is always going to be slightly above market rent. We factor in taxes & insurance in the area as well as if their is an HOA to determine your exact rental amount. Your rental amount will not change over your entire lease period.
When am I able to execute my purchase option?
You can execute your purchase option at any time during the 2-year lease period. You will have a first year and second year option.
How much is the application fee?
There is no application fee required!
What type of properties qualify for the program?
Crescent is willing to consider most types of homes including SFH, townhomes, condos, etc. We currently do not purchase manufactured homes.
Can I choose my own realtor?
Yes! Choose your own realtor or we will fit you with one our well-versed preferred agents we work with.
How long does it take to close?
On average up to 30 days, dependent on multiple factors.
Who pays the insurance, property tax, and HOA fees during the lease period?
Crescent pays all these costs during the lease period.
Who is responsible for maintenance and repairs?
The tenant is responsible for all maintenance and repairs unless insurance related.
Is renter’s insurance required?
Renter’s Insurance is not required but is recommended.
Do you allow pets?
Yes!
Does Crescent provide a mortgage or financing?
No, we are not a mortgage company. However, we can refer lenders or work with the lender of your choice.
How do I apply for the program?
Start by filling out a prescreening/prequalification questionnaire on our website. If you prequalify one of our associates will send you an application to get started on.
How can realtors become involved with the program?
Crescent partners with realtors to become "preferred agents" with our program. This allows agents access to our program for their clients and the ability to receive free referrals. Sign up on the "Agents" page of our website.
Once a household moves in, who owns the home?
Crescent owns the home until the household exercises their right to purchase the property.
Is there a minimum/maximum purchase price?
Our minimum purchase price is $200,000, and we have no maximum purchase price,