One of the risks you take with a lease-option is that you just might not be able to get the mortgage you need to make the purchase when you need it.
How to Minimize the Risk. There’s no way to eliminate this risk completely; however, it can be minimized in the following three ways. read more »
We’ve seen the advantages of the lease-option. Now let’s look at some of the potential weaknesses more closely.
The Buyer’s Being Unable to Buy
It’s important at the onset to realize that a lease-option is definitely not a purchase. You do not get title to the property. Rather, you get a lease and an option to purchase down the road. read more »
So they decided to try a lease-option. Their rent would be $1,500 a month for three years. (That was $250 over market rate.) And the seller would credit them with $500 a month if and when they made the purchase. Over three years that would come to $18,000. read more »
For you as a buyer, a lease-option can be a winning situation. Yes, you probably will have to pay an additional amount in rent. Yet all of the additional amount plus part of the regular rent will likely be returned to you as a credit when you make your eventual purchase. read more »
Further, to help ensure that buyers could quickly accumulate the necessary down payment, sellers would add a bonus. They would apply not only that excess rent toward a down payment but some of the regular rent as well. read more »