MBN's Lease Purchase Program
-Are you tired of paying high rents?
-Are you ready to start investing in your future?
-Do you desire to own a home but need to move right now?
-Are a few past credit hiccups preventing you from homeownership?
If you answered yes to any of the above questions, then our lease purchase program may be for you! We offer short term lease purchase agreements on all of our MBN Homes! This allows the buyer the right to move into our property on a rental basis while we work with them to secure a mortgage loan to ultimately purchase the property and start investing in their own new home. We have made countless families' dreams a reality in Northeast Indiana with our unique lease purchase program over the past few years and are excited to make homeownership a reality for you on one of our homes!
Is there a credit check?
Yes, we do a credit check. While a perfect credit rating is not required, we do have to make sure the buyer is close to being able to secure a mortgage loan or purchase the property within a reasonable amount of time.
What are the qualifications?
The qualifications are pretty simple. It takes a stable job or income, intent and desire to purchase, and an a acceptable credit rating (No unpaid collections, liens, judgments or a recent bankruptcy). Assuming the applicant meets this criteria, it is very likely they will be a great fit for one of our homes and this program.
How do I find out if I may qualify?
First, you can call or email us anytime at the contact information provided on our site. You can also fill out a free, secured application on our site here by clicking on the APPLY HERE tab at the top of this page. It only takes a couple minutes to fill out and we will process your application within 1-2 business days. We do recommend you talk with one of us before filling out an application. This will help us to gather additional information up front to help ensure an accurate pre-approval.
How soon can I move in?
Assuming the home is a completed project we can allow the lease inception to start right away in most cases. We will not allow someone to move into one of our homes before they have applied for the program, agreed in writing to the terms, and the lease purchase contract and purchase agreement have been signed by all parties.
Will the mortgage payment be more than what I pay in rent?
Generally, we charge rent based on an estimation of what the mortgage payment will likely be. Obviously, there are a lot of factors we do not control, such as ever-changing interest rates, real estate taxes, and homeowner's insurance that could reduce or increase the buyers mortgage payment from what they were paying each month as rent. There is a chance the buyer will purchase the property and the payment could go up or down based on these changing factors. On average, the mortgage payment is usually similar to what the buyer/tenant was paying to us as rent.
Does the rent go towards the purchase price?
On average, we greatly subsidize the rent from market rate rent to reflect a similar payment to what the buyer is likely to pay as a mortgage payment when they purchase the property. Because we are already subsidizing the rent in most cases from market rate, we are not able to put the rent towards the purchase price of the home.
How long may I lease the home before I must purchase the property?
This greatly depends on the individual applicant. Generally, the shorter term lease the better for us. We are not currently able to offer long term leases on our properties at this time. Generally, we look for an applicant that is very close to being able to secure a mortgage loan to buy the real estate. The length of time generally will not exceed 3-6 months and we may not be able to offer more than 1-2 months on some of our properties.
Am I obligated to purchase the home?
This program is a homeownership program. Our goal at MBN is to create homeownership. There is an obligation for the tenant to secure a mortgage or purchase the property within the agreed upon amount of time that is spelled out in the lease agreement. We will work diligently for you and with you in this process to make sure you are on track to securing a favorable mortgage on the home.
Can I have pets in the home while I'm leasing it?
Upon lease inception, we allow the future homeowner to make the home their own for the most part. We do require that they disclose and make us aware of all individuals and pets that will be living in residence. While we may allow it, we strongly encourage the future homeowner not to make any modifications to the home itself until they have secured the financing and closed on the property.
Who maintains the property when I am living there?
We treat our future homeowners just like they bought the home once they sign the lease. They are welcome to inspect the property or have the property inspected by a professional inspector before they move in. Once the agreements are signed and the tenant/buyer takes possession of the property, the responsibility for repairs and upkeep is their responsibility.
Are there penalties if I don't buy the home?
There is an obligation to purchase the property. If the buyer/tenant is unable or unwilling to secure financing in order to purchase the property, then there may be penalties incurred to the tenant/buyer.
Do I have to have a deposit to move in?
The deposit is negotiable but we do require first month's rent and a deposit on our lease purchase homes. The deposit is determined based on many different factors such as: How long the lease term will be, the purchase price of the property, and the credit worthiness of the buyer/tenant.
Do you offer all your homes on a lease purchase basis?
Yes, if the terms are negotiated to mutual benefit, we are willing and able to offer any of our homes on a lease purchase contract.
Where can I find an up to date list of your homes available for lease purchase?
All the homes we have available are found on our website on the AVAILABLE HOMES tab. We update the website weekly to make sure we have an accurate and up to date list of all the homes we currently have available.