Purchasing a Home on a Lease Option Program
The lease option program is a way for folks who have always dreamed of owning their own home, but have either no credit history, little or no down payment, or have bruised credit.
How does it work? When you and the landlord come to an agreement that states you can have the option to purchase the home in the future and you opt to do so after a period of time, you then get the mortgage and stop renting. If not, you move on. The agreement also states all terms and conditions. i.e. time in which you have to buy, expenses that will be covered and by whom.
Why is lease option popular?
• You have to opportunity to move in now and worry about the mortgage later.
• It also gives you a chance to establish or fix credit issue which will work in your favor later with better rates
• Since the home is going to be yours you could put equity in the home by finishing the basement, add landscaping etc.
• While renting it allows you to save for the downpayment which lowers the mortgage amount.
• Watch the real estate market while you’re renting. It works in your favor either way. If the values go up you’re locked in at the agreed price when you started your lease. If they go down you still have the option not to buy.
More and more people are using this method of purchasing their home that they once thought was impossible to attain. This might be your solution!