Lease Purchase Tips

As a Buyer, if you are not approved for a mortgage either due to credit or low savings, you can still purchase a home with a lease-purchase agreement.  Usually, the terms of the deal include a lease and an option to buy with part of the rent going toward the downpayment. The forced savings helps buyers amass enough to buy the house in the specified timeframe, usually three to five years.

Here are some tips if you are contemplating using a lease-purchase option:

1. Don’t be afraid to ask the seller if the owner would accept a lease-purchase agreement. Sellers might find it attractive once they understand it will generate regular rental income.
2. Negotiatehow much money will go toward the downpayment and whether the buyer or the seller or both will handle maintenance and repairs.
3. Avoid prepayment penalties. No prepayment penalty increases the incentive to do the deal quickly. In most cases, that’s a good thing from both the buyer’s and the seller’s points of view.

What more information about doing a lease purchase?  Call 404.444.5777 or email places2love@gmail.com.  Happy House Hunting!

Source: Florida Today, Anne Straub (07/19/2009)