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Lease Option Program

How should I choose lease option vs. mortgage?

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Our lease option program is a great solution for many people that don’t quite qualify for a mortgage, but it’s good to understand the differences between our lease option program and a traditional mortgage.

First- let’s define a lease option.

A lease option is a real estate agreement that gives a renter a choice to purchase a property during or at the end of a rental period.

IMPORTANT: A lease option agreement prevents the property owner from offering the property for sale to anyone else. A lease option is also known as a lease with the option to purchase.

With a lease option, the renter has the exclusive right to purchase the property.

What are the main differences?

With our lease option program, you rent your home while you save up to buy. Here are some of the key differences:

  • With a lease option, you rent your home while you save up to buy it
  • You pay fair market rent every month
  • There’s no interest on your monthly rental payments. With a traditional mortgage, you’ll have an interest rate.
  • You only need 2 month’s rent to move-in, versus 3-20% with a traditional mortgage
  • Choose a home and an all-cash offer is submitted to the seller to buy the home, which can be significantly more attractive to sellers than offers from buyers needing a mortgage
  • We can close fast—usually in as little as 21 days

We also help you get mortgage ready through our free home buyer strategy planning and credit counseling.

lease option program

Who is a good fit for our lease option program?

A lease option is a great fit for people who are ready to try out homeownership but don’t yet qualify for a mortgage. Maybe you haven’t had the time or opportunity to save up for a down payment, or you’ve had a financial misstep in the past— our lease option program can be a great solution to help you get on the path to homeownership.

Mortgage loan denied in underwriting?
lease option

Our program is also a great option for potential home buyers that were very close to qualifying for a mortgage, but didn’t get the final approval. Recently we’ve seen mortgage lenders tighten their home buyer requirements during the pandemic, meaning there are people that would have qualified 6-12 months ago, but may not today. We can help you secure your dream home, even if your mortgage fell through.

I think I can qualify for a traditional mortgage—how should I choose?

We typically recommend that you take the traditional path to homeownership by getting a mortgage, if you’re able to qualify. Our lease option program is simply a bridge for people who want to become homeowners, but can’t quite get there today. 

Our all-cash offer can also help home buyers get a leg up in competitive markets. If you’ve been struggling to win the home you want, having the power of an all-cash offer could be a good solution.

Our lease option program also gives you the flexibility of renting. If you’re moving to a new city or area, you can use our lease option program to find a home you love and try it out before fully committing to buying it.

Our main goal is to help people become homeowners—whether that takes 2 years or 2 months. Our program lets you buy back at any time. 

However, if you’re not sure you want to commit to homeownership yet, or if you still haven’t saved quite enough for a down payment, a lease option is a great solution!

Think a lease option could be a good fit for you? Get started today! It’s free to find out if you pre-qualify and only takes a 2-3 minutes.


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Lease Option Program

Rent to Own Housing, A Building Block of Communities

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Rent to own housing is a great way for people to work towards homeownership, but it can also help improve the entire community. In today’s blog post, I want to discuss all of the benefits that rent to own can bring to a community as well as some examples of it in action.

Rent to own takes place most of the time in one of three scenarios.
1

Often, the first is that a vacant or foreclosed is bought by a real estate investor that fixes up the property and sells the home via rent to own to quickly turn the property.

2

The next scenario is where a developer builds a series of new homes or condos using a rent to own program to entice buyers.

3

The final scenario is when an individual home owner has some difficulty selling their home and decides to use a lease option or rent to own method to sell.

When we look at the first scenario you might think, how does this benefit the community?

Good question. Well, when a neighborhood has a home that is vacant or foreclosed it can lower home prices nearby as well as attract crime and squatting and. (Yikes!)

The incentive of the quick turn around that lease options and rent to own provides for the investor can improve home prices for everyone in the area as well as prevent many problems.

Although a developer building rent to own luxury homes or condos can some what drive up the surrounding home prices, it doesn’t have quite the overall community building affect that takes place when they build a development in a economically challenged area.

There is a great example of this situation in Maryland where real estate broker Dana Ash-McGinty is working with developers renovating  20+ homes to sell using rent to own. While this has some hurdles to overcome, it would significantly improve this community in addition to providing affordable housing to families in need.

It’s always a frustrating story when a seller can’t find the right offer for their home and desperately wants or needs to move. Many times in this situation the home either remains vacant or is run through a series of tenants. While we visited the issues with a vacant home above, a home with bad tenants can be just as bad. Tenants tend to not take as good of care of the home and if evicted, may even damage the property purposefully.

In a rent to own program, the renter intends to buy the house and is more likely to take good care of the home and make nice with the neighbors.

Regardless of the scenario, rent to own can provide serious benefits to the community and in some cases helping it actually flourish.

Learn more about about our Maryland Rent To Own Program.


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Lease Option Program

Defining a Rent to Own Home

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Owning a home is part of the American dream and something that everyone should be able to accomplish.

Many years ago, people used to think of buying a home in their late 40s and 50s when they had enough savings and disposable income to afford it. Gradually the trend started to drift towards people buying a home after spending a few years in their career field. Of course provided that they saved enough money for a down payment and had a decent credit rating.

Though due to the economy, loss of income, or poor credit ratings, it became more challenging for many people to own a home and ended up renting.

To maintain the American dream, the real estate experts came up with an original way to combine renting and and owning a home.

This is process of buying a home is referred to as rent to own. It works by allowing you to rent a home you want to own. Once the buyers have had a chance to work on their credit and save enough money to make a down paymen, you have the option of purchasing the home.

Not only is this a renter friendly option for the new generations seeking to purchase a home of their own, it is also a safe way to find the perfect home without having to get a mortgage immediately.

No worries if you change your mind. Most rent to own program give you the option to not purchase the home.

If you are interested in looking for a rent to own home, we have one of the largest databases of Maryland rent to own houses available.


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