• A seller agrees to rent a property to an interested buyer for a set period of time, usually one to three years. At the end of the lease, the buyer has the option to purchase the home at a preset price.

• A portion of the monthly rent paid during the lease is usually counted toward the down payment. To cover that, the seller charges a rent increment or monthly premium of $200 to $300 compared to comparable rentals.

• Many owners also charge an option fee for taking the property off the market, usually 1 percent to 2 percent of the sale price. This may be applied toward the purchase.

• Sellers have no guarantee that renters will buy at the end of the term, but if they don’t, they keep the option fee and the amount of the rent that would have gone toward the down payment.

Source: Orlando Sentinel (03/09/08)

Address:3503 GAYLORD STREET	Property Type:RESIDENTIAL	Price:$258,000
Listing #:609828	Status:ACTIVE	PSF:$226.71
	Backup/First:	Fin PSF:$226.71

TOTAL UPPER MAIN LOWER BASEMENT Bedrooms 2 2 Baths 1 F Square Feet 1138 1138 655 Finished Sq Ft Total:1138 Total Sq Ft:1793 Date Measured: Basement:PARTIAL Bsmt Finished:OPEN %Bsmt Finished:

Description: CORNER,NO COVENANTS,COVERED PATIO,DISPOSAL,DISHWASHER,FORMAL DINING,GARDEN AREA,GARAGE DR OPENER,MICROWAVE OVEN,PET FREE,PATIO,QUICK POSSESSION,REMODELED,SMOKE FREE,STOVE/RANGE/OVEN,TILE FLOOR,UPDATED, WOOD FLOORS

Public Remarks:CONTRACT FELL, BACK ON THE MARKET! $500 BONUS TO SELLING AGENT IF CLOSED BY 3/31/08 PERFECT BLEND OF NOSTALGIA & UPDATES. NEW KITCHEN W/NEW APPLIANCES,NEW ELECTRICAL, PLUMBING,NEW BATH.GREAT NEIGHBORHOOD,LARGE YARD W/COVERED PATIO.LOTS OF LIGHT& WARMTH.

Broker Remarks:AGENT IS RELATED TO SELLER. LEASE OPTION AVAILABLE

For more information, please contact

Randy Bell

Phone: 720.373.4700

Email: randy@zerodownhomes.net

www.zerodownhomes.net

A lease-option is similar to a new-car lease, in that the renter has the choice of buying the property or not by the end of the lease term. Unlike a lease-purchase, which requires the tenant to buy the property within a year or two, a lease-option doesn’t force the tenant to buy.

For both the tenant and the owner, the amount of the monthly rent credit toward the tenant-buyer’s down payment is the key to a successful lease-option.

Here’s a summary of other lease-option perks:

• Upfront option money is smaller than typical home-purchase closing costs.
• The rent credit outweighs lack of mortgage interest and property tax deductions.
• The buyer can “try on” the house or condo before buying.
• The option purchase price is locked in for the lease term.
• The buyer can move in within a few days after signing the lease-option.

Source: Inman News, Robert J. Bruss (02/03/07)

If you would like additional information about rent to own homes in Denver as well as anywhere in Colorado contact us at 720-373-4700.

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.

Address:2669 SOUTH JACKSON STREET	Property Type:RESIDENTIAL	Price:$269,900
Listing #:592346	Status:ACTIVE	PSF:$216.09
	Backup/First:	Fin PSF:$216.09

TOTAL UPPER MAIN LOWER BASEMENT Bedrooms 3 3 Baths 2 FH Square Feet 1249 Finished Sq Ft Total:1249 Total Sq Ft:1249 Date Measured: Basement:NONE Bsmt Finished: %Bsmt Finished:

Description: CABLE AVAILABLE,DBL PANE WINDOWS,FENCE,QUICK POSSESSION,WALL/WALL CARPET

Public Remarks:GREAT OPPORTUNITY! ALREADY HAS SOILS REPORT, ENGINEERING, SURVEY, PLANS, AND IS PERMIT READY. OR JUST HOLD AND WATCH YOUR INVESTMENT GROW. GREAT LOCATION. 2 NEW BUILDS UP RIGHT NEXT DOOR. LEASE WITH OPTION TO PURCHASE CONSIDERED

Broker Remarks:SELLER IS WILLING TO GET CREATIVE.

Directions:COLORADO BLVD TO WEST ON ILLIFF AND SOUTH ON JACKSON

For more information, please contact

Randy Bell

Phone: 720.373.4700

Email: randy@zerodownhomes.net

www.zerodownhomes.net

Fair Isaac says the new products will predict how lenders can offer even more debt to consumers without taking on undue risk.

The update revamps the old credit-scoring formula so that it penalizes consumers with a high debt load more than the earlier version. FICO 08 should increase predictive strength by 5 to 15 percent, according to Fair Isaac’s vice president of scoring, Tom Quinn.

FICO 08 is also expected to do a better job of determining which consumers with past defaults are “more on the road to recovery and should have more of a higher score,” Quinn says.

The new index can look at three consumers with a 700 FICO score and determine which of the three could take on additional debt without defaulting, according to the company.

Source: Star-Tribune, Kara McGuire (01/22/08)

“Mortgage rates already have fallen and they still are falling,” says Dave Loyst, vice president of retail lending at Stearns Financial in San Diego. “Every deal is a struggle, but we’re still doing loans. I think this rate cut absolutely is going to help the real estate market.”

“This definitely will help the mortgage situation,” Loyst adds. “With rates falling, more people are able to qualify for refinancing and more people who were left out from buying homes before will be able to do so now.”

“This is the affordability piece,” says Richard Musci, vice president of Charles Schwab Bank. “Consumers should be able to afford more (of their living and discretionary expenses) at these lower interest rates.”

Loyst concurred with that assessment: “People will come out looking to buy houses…and it will help slow down the depreciation of real estate (values) in certain areas.”

Source: Dow Jones Business News, Jennifer Waters (01/24/2008)