Rent to Own / Lease to buy: -
Overview
Understanding this concept is fairly simple and in layman's language you rent the property / your dream home and eventually land up buying the property as with rent to own or lease to buy option or clause is included in this agreement. Say for instance as of today you are not in a position to buy your dream home for multiple or any reason.
- Credit score Issues
- Debt to income issue
- Recent Bankruptcy or foreclosure
- Deed in lieu / Repossession in the past
- Short Sale in the past
- Blanket Money with no paper trail
In any or multiple scenarios the banks will not qualify you for a mortgage, there are various investors who will give you the option of lease to buy, where you just pick a realtor and choose the house you want to move in and the investor will buy that property for you and you get an option of buying back the property depending the time frame mentioned in the agreement between 3-6 years you have the option of purchasing the property that you are living in.
Advantages of Rent to own / Lease to buy
- The rate for buying the property is capped @ 2% every
- You can enjoy the appreciation of the property value as your purchase price is capped
- You can make any changes to the interiors of the property
- Enough time to build your credit and purchase the property from any lender
- Even while renting you feel that this is your own home
- You are under no obligation to buy back if the property value falls down
- Early exit minimum of 1 year
Disdvantages of Rent to own / Lease to buy
- You need to bring upfront deposit for escrow for this option 3%-5%
- You land up paying more rent as compared to current market trend
- Purchase price of the property keeps increasing by 2% every year
- Locking period of 1 year
Currenty we can help you qualify for the program in the below mentioned States
- California
- Texas
- Arizona and
- Washington