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Lease to Purchase

More often than not, a rapidly growing church will find itself in a situation where it cannot afford a facility large enough to house its current or expected congregation. Since the existing building size limits the growth potential of the organization, most churches look to renting a larger space. While this certainly is an option, the rental fees act as sunk costs that reduce the overall income of the church.

Fortunately, there is another solution that is often overlooked:

Leases with the option to purchase are a great way to get the space you need, while putting your down payment towards the purchase price of the property. Since there are numerous ways to structure this type of agreement, we recommend you keep the following aspects in mind as you negotiate:

  1. The purchase price of the property should be determined and included as part of the lease purchase agreement.
  2. Determine the amount of each monthly payment that will go towards the purchase price of the building.
  3. Establish terms outlining how improvements or repairs to the building will be handled. Do these financial outlays go towards the purchase price of the property?
  4. How long is the lease purchase agreement valid for? A longer time frame is always preferred for buyers.
  5. We recommend asking for partial seller-held financing at the time of purchase when possible. Being too aggressive here may ruin the deal – A second trust of 10 to 15% should be sufficient for most purposes.

Although a lease-purchase agreement is not for everyone, understanding your options is a vital step in the negotiation process. For more details about this option, or to speak with us directly, please call us at (800) 710 – 6762 Ext. #1

As always, we have one of the best referral programs around. By introducing us to someone that we provide a loan for, we will pay you ½% of the loan amount, up to a maximum of $10,000. While this program is open to everyone, mortgage brokers must choose between charging points on the loan or earning the referral fee.

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1135 Heatherstone Dr., Fredericksburg, VA 22407 | Phone: 800-710-6762 | Fax: 540-548-1117