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 through the
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 amortized
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 schedule,
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 credit straight
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 traditional purchase.

3. Is there a prepayment penalty? No, you may pay this loan off at any time with
no penalty.

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% above prime
rate. With prime rate at 7.75%, the rates would be between 12.25% and 16.25%.

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 payment is
10%, but if you have other collateral we will work with you to help you become a
home-owner.

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 things like
bankruptcies, collections, being turned down for a bank loan or other credit
problems are no concern to us in regard to getting you in one of our homes. We
want to be familiar with your credit issues so we can better guide you to repairing
your credit.

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 the term?

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 purchase.
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 may change,
but we won't force you to move out.

THE LEASE-OPTION PROGRAM

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!

Step 1 $550.00 Monthly Lease
  $2,750.00 5% Option Fee (Non-Refundable) only guarantees the price of the house during the 12-24 month lease.
  $3,300.00 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
Step 2

Lease, by 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.

Step 3

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.

Step 4

Now, youíre able to purchase YOUR home. 

Example:  $90,000.00  Purchase Price
                - $4,500.00  Option Fee
(Becomes your Down Payment)
                     
$85,500.00   Balance Financed

*If you follow through and purchase the home, your Option Fee becomes your down payment.

*Upon Refinancing your monthly payments should decrease

*Option Fee is non-refundable and is forfeited if the home is not purchased.

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