For those looking to buy a home, but lacking the credit score or money for the down payment, there is a method proven to be the most profitable – The lease Option. Buying a home with a lease option has a lot of benefits, but mainly because it allows those who would not qualify to purchase a home right now to buy a home of their choice.
Lease option purchase means you sign a contract to buy a house, but you do not automatically own the property. A lease option refers to the fact that you have the option to buy the property at the end of your lease term. You would be a tenant in a lease option purchase home for a year, two years, or three years; then, you would attend the Settlement/Closing proceedings to take ownership of the property. Generally, lease option agreements require a minimal deposit, which is applied to the purchase price of the home if you decide to buy. The payment schedule is laid out in the agreement.
In a lease option agreement, your biggest advantage is that a portion of the rental amount you pay will be put aside in a separate bank account and will also go towards the purchase price of the Credova property. One of the advantages of leasing as opposed to renting is the ability to pay down the purchase price. Also, this is a great financial option for those who think they are unable to buy a home due to their less-than-perfect credit. This option helps to buy the property with bad credit. This type of purchase gives you the time you need to clear any debts.
Several different terms are used to describe Credova option purchases: lease purchase, rent with option to buy and lease option. All of these terms are interchangeable, so don’t be confused, they refer to the same thing. The lease portion of the lease-purchase agreement allows you to move into the house immediately and live in it throughout the lease term.
Lease option contracts are nothing more than options. It reduces the interest which allows saving money. Choosing not to purchase the property at the end of the term is perfectly fine. During these troubling economic times, lenders are being extremely restrictive. Even people with perfect credit are having difficulty getting approved. Essentially, the lease option purchase allows you to purchase the home you want, at the time you want.