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Can’t afford to buy right now? Lease-to-own is an option.

By Caitlin Bricker on April 15th, 2011

3 Comments

With record low mortgage rates and home prices, there has never been a better time to buy a home. If you’re considering buying, but are not in a position put a down payment on a home just yet, a lease-to-own home may be the right option for you.

How it works?

A lease option is an arrangement between you and a seller to exercise the option to buy a house after you have rented it for a specific period. A portion of your rent would be applied toward the purchase if the option is applied. This is referred to as rent credit, which most institutional lenders will accept as part of the down payment if rental payments exceed the market rent and if a valid lease-purchase agreement is in effect, a copy of which must be attached to the loan application. Read any lease option arrangement carefully for details on transferring the option and other important concerns. For information on lease options, contact your real estate agent (some even specialize in such transactions) or read up on lease options at the public library or on the internet. If you have a real estate attorney, ask if he or she has any prepared information you can review.

Post Author

avatar Caitlin Bricker
Caitlin is a member of the @C21 social media team. When she’s not scouring Twitter and pop culture blogs for the latest celebrity real estate news, she’s experimenting with new recipes, planning her next European travel adventure, and scoping out her ocean front dream home complete with a wraparound porch and Adirondack chairs.
View all posts by Caitlin Bricker

3 Responses to "Can’t afford to buy right now? Lease-to-own is an option."

  1. avatar Love Lester says:

    We don’t just sell houses, we help lease them as well. Horray C21, good article Caitlin. If anyone needs info on leasing in Southern California, I’m here for you.

    Love J. Lester
    Real Estate Agent #01805399
    Century 21 Hollywood
    Office: 323-462-7436
    Cell: 818-671-8897
    Fax: 323-462-8489
    Lester@Century21.com

  2. avatar joel says:

    I am seeing this more often in our mortgage market in Kentucky. Very-well written and timely article.

  3. avatar Lease to Own says:

    Leasing a home with an option to purchase it is really an advantage. Thanks for posting this blog. I also come across to a Lease to Own site that fixes credit and provides FHA financing.

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