| You can own your own home even in this market. | | | | may not need to go to credit counseling, you can do |
| You don't have to have great credit, but you do have | | | | some things on your own. |
| to do your home work, so to speak. The way is | | | | A lease can be written to favor the buyer or the seller |
| through lease purchase homes, or commonly called | | | | so it's best to have a lawyer look over the contract. |
| rent to own or a number of other names. | | | | The contract includes sales price of the home, rent |
| Most everybody has rented at sometime in their lives | | | | (these both are market driven), the option fee, the |
| and are familiar with a standard lease. The lease | | | | option period and the rent premium. The owner of the |
| document allows you to live in the home for a specific | | | | home still pays the taxes, insurance, and repairs and |
| time period for a specific amount each month. With a | | | | maintenance of the property during the lease-option |
| lease purchase home or lease option home the lease | | | | term since you have no ownership interest in the |
| part of the contract gives you the right to live in the | | | | property. Although some of this is negotiable. |
| home for a specific amount of time and the option part | | | | The lease-purchase offers home ownership |
| of the document allows for the purchase of that home | | | | opportunities to people with little cash and/or poor |
| at a predetermined price. Usually there is an option fee | | | | credit, who are prepared to take charge of their lives. |
| due when the lease is signed similar to a rental deposit. | | | | The thought is that before the option period expires, |
| This amount is usually 1-5% of the purchase price. The | | | | they will qualify for the mortgage they need to |
| monthly payment is a bit higher than standard rent that | | | | exercise the option. During the option period, they have |
| is because part of the monthly payment applies to the | | | | the opportunity to rebuild their credit and accumulate |
| purchase price like a down payment. | | | | equity while living in the house. This in no way has |
| Part of the reason to do a lease purchase home | | | | anything to do with sub-prime mortgages. At the end |
| agreement is to allow time to work on your credit and | | | | of the option period you will have tried to qualify for a |
| build equity. There are several ways to do that. You | | | | conventional mortgage. |