What are Your Lease to Own Housing Options?
Lease to own housing is one of the best kept real estate secrets, and when word got out on this revolutionary way to buy a house, the market in doing so literally exploded. However, there are still many people out there who are considering buying a house and are asking themselves: What are my lease to own housing options?
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The term “Lease to Own” (which also goes buy the names “Rent-to-own” and “lease option”) is basically a lease, which anyone who rents is familiar with, combined with the option of being able to purchase the house within a certain period of time, often within 3 years. The buyer and seller agree upon a selling price, and the borrower pays an option fee (typical between 1% and 5% of the price), which in turn is credited to the purchase price. The borrower then pays rent in typical fashion, as well as an additional “credit” that is also credited to the purchase price.
If you are looking for lease to own housing options, you need to realize that while you are renting, getting into a lease to own housing contract is different than your standard rental agreement. For one thing, the credits that are applied to the purchase of the home will be lost if the deal falls through and you don’t purchase the home. Also, lease to own deals can be set up in a way in which one party benefits more than the other. However, lease to own housing options are based on a solid, 100% legal, economic rationale. As long as both the buyer and seller are honest, the deal can be structured to be mutually beneficial. As with any contract, if you don’t know what you are getting into, be sure and contact an attorney with any questions.
Lease to own housing options are available to many people, and are especially attractive to those with imperfect credit and/or no down payment. If you have looked at buying a house but don’t think you are able to, you should look at your lease to own housing options and consider using them to get into your dream house today!
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