Lease Purchase Agreements in Atlanta
Lease/Purchase Contracts Offer a Solution to current and future homeowners
Many owners in Atlanta are considering lease purchase agreements, which can put you on the road to home ownership even with poor credit and little money for a down payment. A lease purchase is an agreement to rent a property for a certain amount of time (usually 1-3 years) then purchase it at the end of the lease period.
At the start of the agreement, the future owner typically pays the current owner a small down payment to demonstrate their intent to eventually purchase the home. Every month thereafter, a portion of the rent payment is added to the down payment fund. So, by the end of the lease period, the tenant has built up a large enough down payment to obtain a mortgage and purchase the house. If the tenant does not follow-through on the agreement, however, the owner will keep the down payment money.
Lease purchases are perfect for people who wish to own a home but need some time to repair their credit before securing a mortgage loan. Because a portion of your rent is going toward the down payment, you are saving a portion of rent money that you’d otherwise never see again. You will also be building up a solid payment record that helps improve your credit. Today’s tight lending practices have made owning a home impossible for many people in Atlanta, but a lease purchase can put you back on track to own a home.
Lease purchase agreements can also be attractive to current homeowners who need to sell their home but their home is worth less than they owe on it. The lease purchase allows them to continue making monthly payments on their current mortgage while giving them the financial freedom to purchase another home or rent closer to where they’d like to live. Homeowner’s are more willing to accept tenants with poor credit because the tenant has put some money down upfront. As the down payment money builds month after month, the tenant would be forfeiting an increasingly larger sum by breaking the agreement, so there’s even more motivation to keep paying the owners rent.
In today’s market, the lease purchase is a great alternative solution for many current and future homeowners. If a lease purchase could help you re-gain control of your financial future, call me today to discuss your options. You want somebody on your side who has experience finding and negotiating lease purchases and can get you the best deal in Atlanta’s rapidly changing market.