There are many reasons people do either a lease option or owner financing, but usually the biggest is credit issues. Now, this doesn't mean that all people taking these options are in this situation.  

I've had many people do a lease option because they are hired on at a position at a company and they don't know if they will be hired on permanently. But until they are they don't want to buy a house, but they would like to buy the house they are in if they do get hired on.

Another reason is, I have many clients that make really good money, but because they are on commission, like you and me, it is harder and harder to get a loan from the banks now that they are not doing stated income loans anymore. Heck, I even bought my house on owner financing and I love it!

But, like I said, most of the time, it is a credit situation. It may have been job loss, medical bills, whatever the problem was, it isn't the case anymore, but they still need the time to bring up the score on their credit report in order to get a traditional loan through a bank.

But, what happens most of the time, is the person with the best intentions in mind does the lease option or owner financing, but never fixes their credit. Then at the end of the contract they are unable to obtain a traditional mortgage and keep the home. The sad part is unless you do the steps needed during the time of the contract to repair your credit, then you are just throwing thousands of extra dollars down the drain above and beyond what you would have spent had you just kept on renting and in the end, the result would have been the same. Your dream of home ownership will have slipped through your fingers once more.

But, if you do what you need to do and fix your credit during the contract terms then it can be a great benefit for some to do a lease option or get into owner financing to purchase their home.

Below is a great book that I hope helps you in your path to home ownership, this book gives you secrets that are needed to repair your credit and keep your score where it is needed to obtain the mortgage for your new home.

For more information on buying a home on lease option or owner financing, please feel free to contact me anytime and I would love to sit down with you and discuss your options. Maybe we can have you in your home sooner than you think!

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739