The current crisis in our real estate market has made the Prospective Buyer have to be more creative and resourceful in trying to find ways to accomplish their goals of home ownership. The current market hasn't changed the desire for most people to own a home, it has just made it more challenging to accomplish. The lending requirements have tightened, the down payment requirements have increased and good credit has become a must. Most people are keenly aware of the advantages that home ownership provides: tax savings, property appreciation, financial and personal security, etc. However, more and more people are having the door of homeownership shut because of the current economic climate and a "Lease-Option" or "Lease-Purchase" contract is a tremendous vehicle to help many families re-open this door and walk through it down the path towards homeownership.
What is a Lease-Option, or Lease-Purchase?
A Lease-Option agreement, also called a Lease-Purchase, is a lease combined with an option to purchase a property within a specified period or at the end of their lease, usually 3 years or less, at a pre-negotiated sales price. Lease-Options allow a Tenant/Buyer to pay their lease monthly, with a portion of their lease payment (lease premium) being applied towards the purchase price when they are ready to buy the property. The prospective Tenant/Buyer pays an up-front option fee, generally 1.5% to 3% of the purchase price, which is credited to the purchase price. If the purchase option is not exercised, the buyer loses both the option fee and the lease premium.
Please visit www.jamesregroup.com to learn more about lease options and how we can help you accomplish your goals of home ownership.