Stop Renting - Own Now!
Are you currently renting but would
rather OWN YOUR OWN HOME?
CPS has several different options that will allow you to do just
that. With our rent-to-own programs, you
can build your credit and build equity in your own home WITHOUT
having to qualify at a bank.
THE RENT TO OWN PROGRAM
Rent to Own Basics
Rent to Own is simply where you buy the property from us under a
private contract and we act as a financial institution, just like a
bank. If you have a
10% to 15% down payment, you can get the property without going
traditional qualifying and loan approval process.
We will give you a residential lease with the option to purchase the
property at a
specified price at any time during the lease period. Each payment
you make will
reduce the principle which you owe us, just like a standard mortgage
over 15 or 30 years. However, unlike banks we are not in business of
providing permanent financing, so we can finance you only for a
short term, to help you jump from renting into home-ownership.
Any payment quotes we make would be based on a 30 year amortization
but our rent to own arrangement would be for 1-5 years. At the end
of that term
you will have to obtain a replacement loan from a traditional
lender. And again at
that point you would go for a "refinancing" loan, which should be
easier & less
costly to get than a "new purchase" loan, assuming you kept your
and made payments on time.
Frequently Asked Questions:
1. Where do I make my payments? Make all checks out to CPS,
Inc. and mail all
payments to P.O. Box 1327, Murray, KY 42071.
2. What closing costs, fees and points should I expect to pay?
CPS, Inc. charges a loan processing fee of $100.00, a document
preparation fee of $150.00, a credit check fee of $20.00, and an
origination fee of 1% of the loan value for handling the
owner-financing transaction. However, all such fees are
wrapped into your loan, so the only out-of-pocket money you will
need to pay will be the down payment. Also, you will need to pay for
the 1st year insurance premium to have the home insured against
damages. As you can see your total closing costs are a few hundred
dollars, so you're not wasting thousands of dollars like in a
3. Is there a prepayment penalty? No, you may pay this loan
off at any time with
4. What interest rate will I be charged? Depending on your
credit score and other
indicators of creditworthiness, CPS will charge from 4.5% to 8.5%
rate. With prime rate at 7.75%, the rates would be between 12.25%
5. What if I have 15% or more to put down? With a higher down
payment we can
finance you at lower interest rates.
6. What if I don't have 10% down payment? Our minimum down
10%, but if you have other collateral we will work with you to help
you become a
7. How quickly can I get approved and move into the house?
Typically within 2-3 business days.
8. Do you do a credit check and what happens if I have a
bankruptcy or other
credit problems? Yes, credit check is done in most cases. But
bankruptcies, collections, being turned down for a bank loan or
problems are no concern to us in regard to getting you in one of our
want to be familiar with your credit issues so we can better guide
you to repairing
If your credit is extremely bad, you can still get approved but we
may require you to
pay a slightly larger down payment.
9. What happens if I donít qualify for a bank loan at the end of
If, during the term of the agreement, you were late on your
payments, or other
credit accounts, if you incurred additional debt, or jeopardized
your loan in some
other way, you were not making a serious effort to get ready for the
Therefore, we won't give you a second chance.
If, however, you were on time and did everything you could, but
still could not get
financing, we will give you another opportunity. The price and terms
but we won't force you to move out.
Our Lease-Option Program can help you own your own home in ONLY 12-24
months. When Banks & Mortgage Companies say NO, we say YES! Hereís
how to Tell Your Landlord Goodbye!
5% Option Fee
(Non-Refundable) only guarantees the price of the house
during the 12-24 month lease.
Amount needed to move in.
The Option Fee becomes your down payment if you purchase
the home. This 5% Option Fee is WAY LESS than the 20%
DOWN required by Banks & Mortgage Companies
making 12-24 monthly on-time lease payments. This will
establish your credit, or clean up any credit issues
that you may have. These payments must be timely and
consistent for the program to work.
At the end
of 12-24 months we will help you arrange financing
through a Financial Lending Institution (Bank or
Mortgage Company). They will finance your loan with
proof of on-time payments.
able to purchase YOUR home.
$90,000.00 Purchase Price
- $4,500.00 Option Fee
(Becomes your Down Payment)
follow through and purchase the home, your Option Fee
becomes your down payment.
Refinancing your monthly payments should decrease
is non-refundable and is forfeited if the home is
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