Lease Option Program

Category: Finance, Real Estate.

Lease option program is good for the people who want to buy a home and cannot afford to pay the bulk amount.

A Lease- Option program allows moving into new home and arranging for financing at the end of a specific term. It allows you to rent a home for the preset period of time with a portion of the rental payment going toward the down payment to help in purchasing the rented property. Lease Option Program. An" Option Agreement" is the right to purchase the home within a specified period of time for a fixed purchase price. The lease- option is two separate terms but related agreements: A" Lease Agreement" is a standard agreement that gives the right to live in a home in exchange for payment of rent. When the conventional financing does not work, lease option program can offer alternatives by matching the client s needs with investors who helps. But the lease option program is designed for those clients who even do not qualify for a hard equity loan.

There are two types of scenarios that works in Lease- Option: � Foreclosure Bailouts: Hard equity loan is the only source for the clients in foreclosure, having 35% or more equity in their property. The client must have at least 20% equity in the property for it to work at all. � New Purchases: Lease option program helps the clients who purchase a home, but are prevented because of their credit. Here the payments made as down payment and the monthly payments are credited towards the purchase of the home in two years. Buyer makes a down payment securing an option to buy the home and then makes monthly payments, just like rent. Why Lease Option Is Better Than Renting. But many people prefer buying a home though it raises more concerns with regards to payments and expenses. For some people renting may seem more practical than home buying as per their personal situations such as careers, which require them, work to relocate periodically.

It is a permanent decision that provides the homeowner with many benefits including the option to resell if the need ever arises. If homeowners have to relocate, they can resell and invest the money in some other property. Home buying provides an opportunity to put the rental money into the property that will one day belong to them. Lease option provides many of the same benefits of home ownership. This information helps the people who cannot afford for the huge payments for property investments. It enables the buyer to find and choose a quality home they want to purchase. It could even suggest for the people who are looking for the lease- option purchase or hiring.