Have you ever considered how a lease-purchase might be a useful tool for you as either a buyer or seller?  With credit tightening and higher levels of homes on the market, a lease-purchase could just make the difference in whether you are able to purchase or sell that house!

For the buyer who may be slightly “credit challenged” at a time when lenders are tightening their lending policies, a lease-purchase provides a way to get into a home now (the lease) and be assured of owning the home later (the purchase) when their credit is stronger and/or lenders ease their terms.   The time period of the lease is negotiated with the seller and can give the buyer time to save a larger down payment, repair credit, and wait for better credit terms. 

From a seller’s perspective, a lease-purchase is one more tool for selling in a more challenging market, and for alleviating cash flow problems if they are trying to carry two mortgages.  Assuming some level of qualification has been done on the buyer, and earnest money has been received on the future sale, a lease-purchase can provide immediate cash (the lease payment) and an assured future sale—often at a price higher than the current asking price due to factoring in appreciation over the lease term.