Last night I was at a happy hour with some girlfriends of mine. I was intending to go to network or "talk shop," but it never fails that as soon as I mention that I am a real estate agent, the questions start coming. I love it! I love helping to educate people on areas of our industry that they may be unclear on.
I was talking to a friend of a friend by the name of Jill. Jill is in an interesting situation. She and her husband have a lease that is about to expire and they are trying to weigh out their options as far as whether to rent or buy something. They really want to buy a home, but because they are both in medical school and also working, they are afraid that A) they won't get approved for a loan and B) they want to work on restoring their credit.
"Have you ever thought about a lease purchase?" I said to her. "No, but I guess I don't really know what that is either!" she said.
While I don't normally push people into lease purchases, in her situation it might just be a great thing. They will be paying rent somewhere in the Kansas City area anyway, so why not take a risk and see if it will pay off in the long run?
According to Realty Times, a viable tool for cash-poor, but income-rich households, lease-purchase programs traditionally allow you to rent a home for some preset period of time with a portion of the rental payment going toward the down payment to help purchase the rented property.
Last week, Pulaski County, AK officials and Freddie Mac announced a $43 million lease-purchase program for families with blemished credit, a lack of traditional credit or the lack of down payment funds.
Also, earlier this year, Freddie Mac and Fairfax County, VA rolled out a similar program for first-time home buyers with similar credit and savings problems. In both cases, after 39 months in the programs, provided the participant makes the required payments on time and has resolved any credit history issues, the buyer takes ownership of the home and assumes the mortgage.
Lease Purchases aren't for everyone, but it is a great feeling as an agent to well informed and to help people make the decision that is right for them!
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