Lease Purchase or Rent to Own

Asked by Tammy, 29732 Mon Sep 22, 2008

My question regarding rent to own or lease protection programs is that what are they and are they a good idea! I started looking into them because I want my own home, but since I dont have down payment and do not want to live in SC no longer, will that be a good choice. Basically to find out about them before I make a move that I would regret! If you could answer my questions about them and/or tell me where to find information about them, please please respond! My mind in running a mile a minute trying to find a solution about owning a home!

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Justin, , Charlotte, NC
Fri Oct 24, 2008
A Lease Purchase can be a great way to buy if done right, especially now with the mortgage troubles. Too many buyers jump into a Rent to Own type program without any direction. There's a program called Lease Purchase Protection that safeguards you during the transaction, it's free with all kinds of mortgage assistance until closing. The sellers benefit too, so there are homes already signed up or you can use the program to buy any home on the market that will accept the program. Check out the website to learn more.
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Jill Ballard, , San Jose, CA
Mon Sep 22, 2008
A lease option is basically what it sounds like: A lease with an option to buy the property at the end of the lease period. There is an upfront option fee to enter you and the current owner into the contract. It could be a percentage of the purchase price or a couple of months rent. The monthly amount of the lease is usually higher than the corresponding rent of the property because part of it is going towards the buy option. This money is not refundable if you choose to not buy the property.

Is it a good way to go? If you have found a house that you absolutely MUST have that and only that house and you can't afford it right now, then a lease option might be the way to go. If you just want a house, then I would put myself on a budget (maybe a payroll deduction right into a savings account?) and save the money upfront.
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