What is Rent to Own or Lease Purchase or Lease Option?
Rent to Own program may be also called Lease Option or Lease Purchase. This type of program allows a potential buyer to lease and occupy a home and have an exclusive right to buy a home at a certain price for a certain period of time.
Depending on the agreement between the buyer and the seller, you may or may not have a portion of the lease payment going towards the down payment or equity towards the sales price. A buyer and seller will sign a Lease and Option agreements with all the terms of the lease and option to buy. The buyer and the seller agree on the sales price and its possible adjustments at the end of or after the option term.
Lease Purchase program is great for those buyers who are ready to be homeowners, love the home and want to move in immediately, but still might need to save more money for down payment or improve credit. In addition, remember, that all the work you do in the home will not be wasted when the lease is over - homeownership is just around the corner.
