About lender
Microf LLC is a financial institution offering HVAC lease purchase options. It was started in 2010 with a focus on providing options for residential heating and cooling system purchases. The company set up a lease program for heating and cooling system restoration at affordable terms.
It is a BBB-accredited business and rated A+ by the Bureau.
HVAC is a heating, ventilation, and air conditioning system. HVAC loans are generally secured personal loans people take to purchase or replace an HVAC system. Microf doesn't provide loans or financing. It issues leasing and rent-to-own options. Lease-purchase transactions are not available in AK, HI, VT, MN, NJ, WI, and WY.
Pros and cons
Pros
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Availability for bad credit borrowers.
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You can apply with a co-signer. The co-applicant will need to provide their SSN or ITIN and proof of income.
Cons
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Poor customer reviews. They are stated to be a predatory business by many customers.
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The terms are undisclosed. You cannot find the lease terms until you submit an application with Microf.
Terms and conditions
Microf offers an HVAC lease-to-own financing option.
HVAC lease-to-own means Mircof will hold ownership of your leased HVAC system until you pay the company the total sum is provided. You can cancel the agreement before paying off the total sum at any time and not pay any penalties. You only need to surrender the leased HVAC to Microf.
Microf states it provides lease-purchase transactions rather than financing. The term of your agreement will be one month. After one month, the agreement renews for an additional month until you lease your property or surrender it to Microf.
The minimum lease amount is $2,500. The transactions are only available for the primary or vacation (second) homes. The renewal payments of up to 48 months are available for CA, CT, IA, ME, NY, OH, PA, and WV residents. The minimum lease amount here is $3,000.
To understand how much you will pay, Microf has a payment estimator. For example, the NY residents leasing an amount of $5,000 will have to pay $278.24 to $194.29 for each renewal for a 36-months term. It means that if you don't pay the company back the first month, you will have a $5,278.24 amount to pay back in your second month. Your ownership of the property is not acquired until you make all payments under the agreement.
Funding a loan
Microf reviews your application and determines whether you are a creditworthy borrower. They will ask you to complete a customer interview with a representative of Microf, and you will choose your lease option. Once you sign your rental-purchase agreement electronically, you get funds transferred to your bank account.
Keep in mind the company works with its own HVAC contractors, so you may not be able to get the system you wanted to purchase depending on the terms in your agreement.
Microf representatives work Monday through Friday, 8 am to 7 pm ET, and 10 am to 2 pm ET on Saturday.
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Universal Credit
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Important
How to Choose a Lender
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Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
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Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
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Carefully review all the terms and conditions of your payday loan contract.
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Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
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Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
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Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
