For sellers, lease options give several advantages, including higher than market rent, top-market value for the property and tax-free use of the option consideration until the option expires or is exercised. Also, the renter is more likely to treat the property like an owner, tax-free use of option consideration until the option expires or is exercised.
Another option for you would be seller financing, but it comes with a higher interest rate. Higher interest = less house.
Or, better yet, wait a year or two and buy with an FHA loan. You only have to save 3.5% for a down payment, and possible closing costs if the seller won't or can't pay. You no longer have to wait to save 20%. And, your credit doesn't have to be stellar, just 620, but the better it is, the better your interest rate will be. So why take a chance with a lease option if you have to wait to buy anyway? Just buckle down, save your money, because you'd have to anyway, and work on your credit if you need to. I can send you some good info if you'd like it.
Couldn't any of you guys have given him some options? Lease options SOUND good, but they're usually most beneficial to the seller.
Cory La Scala, REALTOR
What area and price range are you considering? With interest rates so low and so many low down payment program available it may also be worth considering an outright purchase.
I would be happy to discuss your options and send you information on the homes that are available for a lease with the option to buy the home.
I am never too busy for your referrals
The San Diego Property Shop
CA DRE # 00648687
However, I always suggest using a local agent in your area who knows the market. Your agent can pull up properties that have lease purchase or rent to own as financing options.