IS A LEASE OPTION RIGHT FOR YOU??

Do you feel that a mortgage for a Bank is nowhere in sight?
Well, there is good news!

There is an alternative that not only grants you ownership in a property, but also buys you time to fix those things that are preventing you to currently qualify for a mortgage . This is called a lease with an option to buy.

Just as the name implies, a lease option is having two contracts: a lease contract, and an option to buy contract. A lease is simply a rental agreement on a property that outlines all the terms and conditions but better as it is like you already own the home. With a lease option, the option part allows you to purchase the property sometime in the future.

A typical lease option contract includes the terms of the purchase price, the expiration date of the purchase option, and the percentage of rent that will go towards the purchase price each month.

Lease options make for one of the best way to assume ownership of a home. It allows for an easier way to qualify than a traditional mortgage loan, and works along the same means as renting. The only requirements of a lease option are that you will be able to get financing on the property within two to three years.

A strong advantage of a lease option is that it usually requires a small initial investment. Typically 2-5% of the agreed upon purchase price.

Another great advantage of lease options is that it buys you time to fix those things that are currently preventing you from obtaining a mortgage today.

By exercising your option when the lease ends you could watch the market value of your home soar, and exceed its option price. With this appreciation on the value, you may be allowed to borrow the money needed to close the sale of the property. In addition to market value any improvements you made on your property could greater build the equity in your home.

Last but not least, lease options literally allow you to save for your down payment. As much as 50% of your total rent could be applied towards your down payment.  

If you are looking for an easy way to purchase and own your own real estate, a lease option may be the right option for you.