Lease purchase your home
A very interesting article by Carla Barnes. Use lease purchase homes to put you in a house. If you must rent why not try rent to own?
With current mortgage forecasts being unfavorable it’s not surprising lease options today are gaining favor.
Lease Purchase Homes is a lease combined with an option to purchase the property within a specified period, usually from 1 to 3 years. The borrower pays an option fee, 1% to 5% of the price which is credited to the purchase price. If the purchase option is not exercised, the buyer loses both the option fee and the rent premium. The option fee is typically charged in exchange for taking the property off the market during the lease and is only a fraction of what a down payment would be.
Lease purchases are a wonderful alternative for people who would like to purchase a home right now, but may need to build up their credit rating or just needing a little more time to acquire a down payment. EOTM Properties has a great deal of rent to own and lease option homes available as well as regular homes for rent in the Atlanta & Surrounding areas.
Below are a few common Lease to Purchase Questions that we hope you find helpful.
1. So what exactly does rent to own or a lease purchase entail?
A standard rental lease allows you to live in the home and there are usually associated move-in expenses such as a deposit and/or security deposit. With lease purchase homes or lease option homes, the “option” agreement gives you the right to purchase the rental home within a certain period of time at an agreed upon price. There is also usually an initial “option” amount due upon signing (similar to a rental deposit) and a monthly additionally payment which applies to the purchase price of the lease option home.
2. I want to buy a home, but not sure if I want to make a commitment because of the market. What should I do?
It is understandable to be reluctant considering the market woes, but consider a lease-option as a long engagement without the commitment. You don’t have to commit to the purchase of the house at the end of the lease period and can walk away if prices have declined or simply if the “chemistry” with the house wasn’t right.
3. Why should I buy through a rent to own program?
Buying a lease option home through a rent to own lease is one way to save for a down payment while you get to enjoy living in the house for lease option purchase. But be sure to fully understand this type of agreement as you must be willing to see the option all the way through and make your payments on time or you could risk losing the right to purchase the home and any additional option amounts you paid.
4. How do I qualify for a lease option home?
The number one qualification is a sincere desire to own a home of your own and a firm commitment to follow through the entire process. We are dedicated to helping our clients understand the entire process and customizing the right plan to fit their needs. Our Professional Group of Mortgage Advisors work directly with you to get a clear plan on what it will take to position yourself for a mortgage at the end of the lease term. This may entail correcting credit issues, pay off bills, save for a down payment, etc. This process can be started by filling out a standard rental application. Get a jump start today.
5. What types of homes do you have available as a lease to option?
We usually have several homes to choose from that are posted on our website. They are homes in great neighborhoods with assorted amenities. If there is not one that meets your needs, we can document the type, location and price of home you are looking for and contact you if one similar becomes available.
Even though this article is written for a specific market, it is applicable nearly every where. Lease to purchase may be the way for you to move toward home ownership the right way.
Tags: Home lease option, lease purchase homes, lease to own home
