Lease-with-Purchase Option

The Lease-with-Purchase Option program is designed for customers that don’t want to lose all their monthly investment to rent but are not quite ready to complete a traditional purchase.

Many of our customers are new to the area and are unsure of the area or duration of their stay. They wish to see a return on their investment into the property should they choose to purchase the home.

Our lease-with-purchase option is also a great program for those who have extenuating circumstances, which are preventing them from closing on a purchase immediately.

The program with IPS Amarillo is quite simple — you choose to either pay an option fee, which will reduce your monthly payment, or you can choose not to pay the option fee. The purchase price is fixed at the lease signing so that you can lock in today’s prices based on current market appraisal. All leases are twelve-month terms.

Another great feature of the lease-with-purchase option is that all payments are drafted automatically from your account, which removes the hassle of remembering to make payments. Additionally, your payment history is reported to the Experian Rent Bureau, which helps those who wish to raise their credit score.

You can pay an option fee in increments of $1,200.00 up to $3,600.00 upon signing. We will lower your monthly payment in proportion to the option fee amount you choose. If you choose $3,600.00, then we will lower your monthly payment by $300.00. In addition to lowering your payment, we will also give you full credit for the amount of the fee you pay — you get double credit for every dollar you pay!

You can exercise your option to buy anytime during the lease period.

Here is an example:

Monthly Lease Payment $1,550
Option fee paid $3,600
Payment Reduction for Fee $300
Payment after Option Fee $1,250

If you elect to purchase the home, then you will have a credit for the $3,600.00 applied to your down payment at the time of closing.

You do not have to pay the full $3,600.00. You can choose to pay $1,200.00, $2,400.00 or $3,600.00, and your monthly payment will be reduced accordingly by $100.00, $200.00 or $300.00.

IPS Amarillo wants to help you succeed at obtaining the financing you need. We understand that many who elect to engage in this program have circumstances that prevent them from following the traditional home-buying route. Your status will be evaluated based on your income and work history as well as your plan for long-term financing.

If you complete the term of your lease and decide not to purchase the home, then you are clear of your lease and free to move on. If you wish to continue the lease, then we will discuss this with you at the appropriate time.

For an application, click here.

how lease to purchase works infographic