Benefits

Build equity while living in your own home. Make the home your own and build equity with improvements!
Say goodbye to renting. Break the rent cycle, no longer worry about increasing rent every year!
Pride in home ownership. You are essentially the owner NOW!
Pet-friendly. Bring Fido with you and no longer pay pet rent or additional deposits!
You have options at the end of your program. Everyone loves options!
Save for your down payment. A portion of your monthly rent will go towards Purchase Credits!

How does it work?

Purple Lion Realty offers a faster, more accessible road to homeownership. Pick almost any home listed on the market for sale and rent it while you save up to buy it. With Purple Lion Realty you don’t have to wait to move into your dream home. You’ll move in with a 3-5% non-refundable option consideration, first and last month’s rent, and a security deposit while paying a monthly rent and earning Purchase Credits to use for your future down payment on the home. You can buy the home from us whenever you’re ready, whether that’s in 30 days or in 36 months. We will customize a program and a home that best fits your financial and personal needs.

What is a Non-Refundable Option Consideration (NROC)?

A non-refundable option consideration (NROC) is a fee that is paid by you, the tenant buyer before moving into your home. During the term of the program, when you exercise your option to purchase the home, the NROC will be issued as a credit at the time of closing (minus any balances or fees owed), essentially going towards your down payment and closing costs. If you choose not to purchase your home, a portion of the NROC may be refundable.

What are Purchase Credits?

Think of Purchase Credits as a down payment savings account. Each month that your lease remains current you receive Purchase Credits. Purchase Credits vary for each person and provide flexible building options to ensure your home ownership at the end of your program.

When you are ready to purchase your home from Purple Lion Realty, those Purchase Credits will be applied as a credit at your closing to be used towards a down payment. If you choose not to purchase your home during or at the end of your lease, a portion of those purchase credits may be refunded to you.

Unlike a traditional mortgage, Purple Lion Realty allows you to live in your home without a mortgage, property taxes, or home insurance. We understand that while a lot of people are ready to be homeowners, their finances may need time to catch up. With Purple Lion Realty, you’ll have a three-year window where you can enjoy all the benefits of homeownership, with all the flexibility of renting.

Let’s break down the key differences between Purple Lion Realty and a traditional mortgage.

A typical mortgage requires a down payment of between 10-20%. With Purple Lion Realty, you can rent-to-own almost any home available as long as you have 3-5% of the purchase price.
While traditional mortgages require an immediate down payment that locks you into a 15-30 year commitment, Purple Lion Realty gives you a 3-year period to live in your home and save any additional deposit the bank may require.
Qualifying for a mortgage is often a headache with steep requirements for your credit, financial record, employment history, and more. You don’t need to be able to qualify for a traditional mortgage to qualify for Purple Lion Realty’s rent-to-own program. At Purple Lion Realty, we make homeownership more accessible for more homebuyers regardless of what a mortgage lender is telling them today. Even if you aren’t mortgage-ready today, you may be eligible to qualify for Purple Lion Realty’s rent-to-own program.
Unlike a traditional mortgage, Purple Lion Realty purchases your home on your behalf, allowing you the opportunity to live in your home while saving for the remainder of your down payment or correcting credit concerns.

Purple Lion Realty

How Does Rent-To-Own Compare to Renting?

Purple Lion Realty’s program is a type of rent-to-own program, meaning you get the affordability and flexibility of renting a property while simultaneously contributing each month towards buying it. However, there are some important differences between the rent-to-own program and regular renting:

Easing into Homeownership

Unlike traditional renting, Purple Lion Realty allows you to work towards buying a property while simultaneously inhabiting it. Think of Rent To Own as trying before buying—find a home you love, move in, and develop an understanding of being a homeowner, all while still enjoying the benefits of renting. During your lease, you’ll have a headstart on your new life there. If it doesn’t, you can walk away and cash out a portion of the Purchase Credits you accumulated while living there.*

* If the original purchase price of the home was $400,000 or higher, you will not be eligible for a refund of Purchase Credits if you decide not to purchase the home.

The Quality of the Home

Homes for sale tend to be better maintained and more recently renovated than rentals. This means when you participate in a rent-to-own program with Purple Lion Realty you’ll be looking at higher quality homes than if you were shopping for a standard rental.

Because homes for sale include disclosures and home inspections, buyers have more information about the history and quality of a home than a renter would. We provide you with these disclosures as well, and our team of property experts will work with you and our agent partners to make sure that any home you move into and eventually buy will be a smart purchase.

Rent

Purple Lion Realty’s program is designed to get you closer to homeownership every month you live in the home.

At first glance, your monthly payments may seem more expensive than traditional renting, but that’s because you are entering into a long-term lease for a home that Purple Lion Realty custom purchased for you. Your monthly payment won’t ever change during the 3 years, regardless of the inflation environment. And, your option agreement allows you to earn Purchase Credits and participate in equity upside on the home, which can make your effective rent much lower than comparable rentals.

Repairs, Maintenance, and Improvements

As a homeowner in training, you will be responsible to keep up with the maintenance and repairs of your home. This would include simple maintenance such as replacing air filters and light bulbs, to maintaining the lawn or calling a professional if a toilet is leaky. For major repairs contact Purple Lion Realty to discuss.

We encourage future homeowners to make homes feel like their own.The home you’re renting will eventually be yours, so if you want to paint it, you can! You can even redo the floors, change the kitchen cabinets, and more. Just contact us in advance to review the details! However, because we’re still financially responsible for the home while you rent it, we do require all updates to be approved.

How Do You Qualify

Complete Questionnaire

Provide proof of funds for the NROC

Meet with our lending team to discuss purchase strategies

Your Responsibilities

Make your monthly payments on time
Provide insurance on your possessions (Purple Lion Realty will provide insurance on the home’s structure).
Pay the utility bills
Keep up the maintenance of your new home
Enjoy your new home!

Rent to Own Program