What is a Lease Purchase?:
Do Rents Apply Toward the Down Payment?:
Are There Up-front Payments Required?:
What's Good About a Lease Purchase for Tenant Buyers?:
- They need time to resolve credit problems, and want the home.
- They want the home but need to build up a down payment.
- They are in as long a lease as the landlord will give them, and want the option to buy rather than move again.
- Sometimes very creative deals are made for repairs and improvements made by buyers and for applying them to down payments or against the purchase price.
On the Other Side - What's In It for Sellers or Landlords?:
- The up-front option payment increases the return on investment and stays with the owner even if the tenant does not purchase.
- The owner can lock in a reasonable price for the home in the time frame they want.
- The lease purchase option can bring in excellent tenants with long term occupancy.
- If the tenant thinks they may end up owning the home, they will normally keep it in better condition throughout the lease period.
Lease Purchase Can Be Good for Both the Tenant and the Owner:
If you have lost a home, have other credit problems, or just can't get a down payment together in a short period of time, lease purchase can work for you as well. Or, perhaps you want to be sure that a new job or area is really right for you, and believe it unwise to jump into a home purchase.
It doesn't matter which side of the lease purchase you're on, if the concept can help to satisfy your housing needs as a buyer or your investment objectives as an owner, then it should be something you want to consider.