What is a Lease Option?
One of the best ways to buy a property nowadays is through a lease option. A lease option (also known as rent-to-own or lease purchase) is where you sign an agreement that allows you to lease a home for a period of time (usually 1-2 years, sometimes longer) and have the right (but not the obligation) to buy the house at sometime in the future.
There are many benefits of moving into a lease option. They include:
– Allows you to live in the home while you build up your down payment, repair credit and/or accrue more time in your job so you’ll be able to qualify for a good loan when you decide to buy.
– Gives you the ability to try out a house (or neighborhood) to see if it will be good for you and your family.
– Creates an opportunity for you to take advantage of equity buildup and appreciation even though you don’t own the house.
– Allows you to make improvements to the house, and the benefits go to you when you buy.
– Allows you to move if you choose to without having to sell the house (and possibly take a large loss in a down market)
– Usually keeps your payments lower than if you were to get a mortgage right now
All in all, a lease option is a great way for anyone to get the benefits of home ownership without a lot of the challenges that exist when trying to qualify for a loan.
If you have any specific questions about lease options, be sure to leave them here.
