Is a Lease Option Home Right for You?

If you do not presently qualify for a home loan, you may think that renting is your only option. Why not consider getting a lease option or rent to own home? Let's take a look as some key advantages.

Move into your dream home now!

It is very frustrating when you want to own a home but do not qualify for a mortgage. When you get a lease option or rent to own home, you secure your dream home now. During your rental term, the owner of the home cannot sell the home to anyone else. You do not have to worry about someone buying your dream home out from under you. As long as you qualify for a mortgage at the end of the option period, the home is yours. While you are working on qualifying for a mortgage, you can still enjoy your dream home.

Ability to make the home your own!

The ability to make a home feel like it belongs to you is important to many people. Unlike a standard rental agreement, most lease option agreements allow you to treat the home as your own. You do not have to ask the owner if you want to change the wall colors or landscape the yard. Being able to customize a home to your tastes is one reason that lease option and rent to own homes are so popular.

Begin Building Equity!

Stop throwing your money away on rent! Each month, a part of your payment will be credited towards the price of the home. This means that you begin building equity from day one! Most lease option contracts set the purchase price up front. So, if the home does appreciate during the option period, you benefit from this!

Building equity not only can help you build long term wealth, it can actually help you when it comes time to get a mortgage. Many mortgage companies will treat that transaction as a refinance. This means that as long as the equity is there, you may not have to put any down payment when it comes time to get a mortgage. Your option fee, rent credit and equity will act as your down payment. Of course, mortgage guidelines change all the time, so you should always be prepared to make a down payment should you need to.

While it is not quite the same as owning a home, the ability to move in today and customize the home as you like is very attractive to many people. Also, there are financial benefits. When you lease option a home, you begin building equity from day one.


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Vincent Polisi is the founder of LifeRebooted.org and FinancetheDream.com. To learn more about lease options and rent to own homes please visit www.financethedream.com.