The lease purchase program are for the people, who are not able to fulfill their dreams of owning a home. Such people are always turned down or disqualified while purchasing homes due to bad credit or employment history. The programs of lease purchase aka lease option, rent to own are suitable for such heartbreaks, and can help everyday people own a home.
Some people have good salaries and a good rental history, but have a few blemishes and glitches on their credit reports. The lenders also ignore them by demanding huge down payments for financing. Such problems can be solved by use of the lease purchase program.
The lease purchase programs have a simple working pattern. Once the home is agreed upon, the tenant buyer contacts the seller investor of a lease purchase house. A simple form has to be then filled. This is only done for the purpose of verifying the information provided. This form can usually be faxed to the seller investor.
The verification response can be availed of within a time span of twenty-four hours. A minimal down payment is charged for this. After paying the option payment and monthly lease payment for the first month, people can move into their dream house.
People have to just sign a lease agreement, with a separate option to purchase. This process does not involve the long waiting periods of pre-qualification and rejections. The various advantages of the lease purchase option programs are mentioned below.
.The down payment required for such programs is very minimal as compared to that required by the mortgage companies.
.The people can quickly move in and enjoy the feeling of pride involved in owning a home immediately. The long periods of waiting and filling of tons of forms is avoided in this process.
.It gives a time span of twelve to twenty four months for arranging the credit required to qualify for the loan. It also clears up the credit rating by forming a good payment history.
.The purchase option with the lease agreement can allow a part of the monthly payment of lease to be credited to the people while closing. This helps in building a down payment during the lease period.
.The entire amount paid of the option fee is also accredited back to the people at the time of closing.
.The requirements of qualification are not strict as in the case of the conventional financing systems.
.There are no insurance or tax payments to be made. However, people are recommended to get a rental insurance policy for remaining secure.
.People can renovate the concerned property, knowing that the advantages of the renovations will be enjoyed by themselves in the future, and not the landlord.
.Any kind of appreciation received by the property is a profit for owners, and the decision to sell the property some day, will always give rewards.
The most important aspect of the option of lease purchase is that, it fulfills the ownership dreams of the tenant buyer.
