Buy a Home with a Lease Option

Good Credit, Bad Credit, No Credit…NO PROBLEM!

So you are in the market to buy a home. It’s all over the media that home prices are down and the loan costs are the lowest they have ever been…but there is one problem, for the same reason that home prices have declined and loan costs are down is the same reason why it is very difficult to get a loan. At one time banks were very liberal in their approval process…we all know the outcome of that story…and now, they are very conservative. You may be self employed or you may have a few hiccups on your credit or  have switched jobs in the past two years, trust us..your not alone. However, even though you may have the 3.5% – 20% down payments the banks simply won’t give you a loan…so what do you do?

Lease with Option to Purchase…an Old Solution to a New Problem

Lease Options were popular in the late 70′s and 80′s, back then interest rates were double digits…in fact, the average interest rate as reported by Freddie Mac in January 1982 was 17.48%! Lease Options are going to once again become popular. So what is a lease option? In a nut shell, a lease option is when a Seller leases their home to a Buyer for a predetermined amount of time and at the end of that time the Buyer has the “option” to purchase the property at pre-determined terms.

Example: Joe Seller and Brad Buyer enter into a lease option to purchase. The lease option is 18 months for $2000 per month.  Joe Seller and Brad Buyer agree that in 17 month, Brad Buyer will have the “option” to purchase the property from Joe Seller for $250,000 both agree and Brad Buyer pays an option fee of $8,750 (3.5% of the final purchase price) which will be credited to the Buyer at the time the purchase is finalized.

Click Here to see How our Lease Option Program Works