Lease purchase programs 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.
Working of the Lease Purchase Programs:
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.
Advantages of the Programs:
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 people.
ABOUT THE AUTHOR:
Charles
W. Moore is a U.S. Army Veteran who began
investing in Real Estate in 2001. He's a
Full-Time Investor, Webmaster, Speaker, and
Author of the book, "Million Dollar Rent To
Own Real Estate Secrets Exposed." Get a Free
Report on
Rent To Own Real Estate Investing from
Charles at:
http://www.Rent2OwnExposed.com and learn
more about Real Estate Investing, Investing
in Stocks and Internet Marketing by
visiting:
http://www.REIeBooks.com
