Buy a Home Using Lease Option (aka Rent-To-Own option)

Have you always dreamed of owning your own home, but current economic and financial woes has you stuck? Once touted as the American Dream, homeownership has become harder than ever to attain for a large number of people. Frozen credit and outrageous unemployment is leading many to look toward rent to own homes or lease options to attain their dreams.

The Rent-To-Own Process

Lease options or rent to own homes have really become interchangeable phrases, however in some cases there can be a difference. Buying a home via leasing or rent to own has many benefits for buyers and in some cases the seller as well. By and large, the process will go something like this:

• Purchase price agreed upon
• Down payment (if any)
• Length of agreement typically 1-3 years
• Buyer takes possession
• End of term- buyer is given the option to obtain financing and purchase the property
• Portion of monthly fees may be attributed to the down payment
• Buyer responsible for repairs, insurance and maintenance during occupation

Here's an excellent Guide to Rent To Own Agreements

Potential Pitfalls of Rent To Own Agreements

It is easy to see how beneficial lease options can be for both parties, but as a buyer, you need to be aware of possible problematic clauses in your rent to own homes contract.

• Void premiums- a portion of each months rental fees are usually set aside as a potential down payment. Some contracts stipulate that if your rent is late by one day or more, that months “premium” is forfeit.
• Lease Option- at the end of your contract there may be a lease option fee. You may feel like you are at the mercy of sellers in this regard, however always remember to choose terms that you will be able to fulfill.
• Foreclosure- one risk you want to avoid is losing your investment because the seller defaults on the current mortgage. Talk to your attorney about safeguards you can put in the lease options agreement.

Finding Rent-To-Own Homes

RealtyStore.com offers potential buyers a convenient database of homes for sale, many of which are lease options properties. Search homes across the country with this easy to use website, full of potential rent to own homes. Do not let your current financial crisis prevent you from achieving your dreams of homeownership; rent to own could be the answer you have been hoping for.