Lease to Purchase Homes in Phoenix, Arizona
Many families spend days, months, even years trying to buy a home but are often turned down for so many reasons – reasons that include poor credit, inadequate income, and a small or non existent down payment. In these situations, people often turn to high interest rate loans to get into a home, only to end up paying exorbitantly high prices and often having to file bankruptcy because they just can’t afford the home. For people like these, there is hope. Lease to purchase homes in Phoenix, Arizona and other places are the answer to many home buyers’ prayers.
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A once little known secret in the real estate world is “Lease to purchase”, often also called a “Lease Option” or “Rent to Own”. What is a lease to purchase? Essentially, you are renting a home with an agreement to purchase it at the end of a contracted period of time. Lease to purchase homes in Phoenix, Arizona, often are purchased at the end of 3 years – however this time frame can vary from person to person, with 1 year, 2 year, and even 5 year contracts not unheard of. The biggest difference between just renting a home and doing a lease to purchase is that a portion of your rent is credited towards the eventual down payment. Again, this amount will depend on how much you and the seller agree to. Some will put a certain percentage; some will apply a dollar amount.
What happens next? With lease to purchase homes in Phoenix, Arizona or anywhere else for that matter, you will have to come up with a loan at the end of the rental period. Someone will have to finance the purchase of the home. However, when that time comes, you should have a sizeable amount credited for a down payment, making the home purchase much easier than it could have been. Many lenders also look upon the reliability of your monthly payments favorably, so as long as you have paid rent on time every month, this will count in your favor when you are going to get the loan.
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