Lease with option to buy

Asked by Steffanie Bush, Dallas, TX Sat Sep 21, 2013

I am looking to relocate from Texas within the next two(2) months, wanting to live in Alpharetta, Marietta or Sandy Springs area. I would like to lease with the option to buy within a year. Are there any reputable companies that offer the option?

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Betty D. Scy…, Agent, GA,
Sun Sep 22, 2013
1 vote
Sally English, Agent, Atlanta, GA
Sun Sep 22, 2013
No no no - do not even think about doing a lease with option to buy. They are usually scam type deals. A better idea is to rent less home than you can afford and then sock everything you can into a savings account until you have enough cash for a down payment.

Talk to a mortgage loan officer and ask them to give you guidelines for what steps necessary to be approved for a home purchase loan.
1 vote
Jimmy Payne, Agent, Alpharetta, GA
Fri Oct 11, 2013
I always advise to rent or buy, don't do both (like "Sign then Drive" vs "Sign and Drive"). When you purchase an option, you are doing just that. It is a unilateral decision and if the terms are not concrete, you may end up with nothing. In an improving/recovering market like we are in now, sellers usually have nothing to gain by a lease purchase or lease/option since the price in 1 or 2 years will be higher and they will miss out on potential profit which is no good for sellers. In a declining market it is the opposite effect and no good for the buyer. The other issue is that if you do not like the area, you are stuck. Take your time and get to know where you really want to live then purchase.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sun Sep 22, 2013
Keep in mind that rent to own can be risky and one could stand to lose a bit of money, therefore do inform yourself well, and consider consulting with an attorney who specializes in real estate beforehand. If you haven't done so yet, visit with any licensed loan officer, see if you can buy outright...
0 votes
, ,
Sun Sep 22, 2013
Hi Steffanie,
I do not suggest doing lease purchases/rent to own. There are simply way too many things that can go wrong with one from either side.

In order to do true owner financing, the owner must own the property free and clear of any mortgages. Very few sellers are going to be in that position.

If the property currently has a mortgage on it, the owner cannot legally transfer the title to a buyer without the mortgage first being paid in full. Most all mortgage loans have a due on sale clause. This due on sale clause requires that the mortgage be paid in full should a title transfer occur.

The buyer is also at great risk on a lease purchase transaction should the seller quit making their mortgage payments. Right now, many sellers cannot afford to make their mortgage payments or simply chose not to continue making them. I have seen where the buyer is making their rent payment, but then the owner is not paying the mortgage. The next thing the buyer knows is that the home is in foreclosure. That means the buyer will generally not get back any of the money they have given as earnest money or security deposits.

It is also a big risk on the buyer. If your credit is not where it needs to be now, there is no possible way of you knowing it will be acceptable in a set amount of time.

Before entering into any type of agreement like that, the buyer needs to make sure that they fully understand the potential pitfalls that could arise. Should the seller default on the mortgage, the buyer could lose ALL of the money that they have invested. Until you are able to purchase, renting is generally the safer option.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options to see if purchasing might be a possibility for you. To get Pre-Qualified for your purchase, you can submit your request online at to get started.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes
Veronika Bar…, Agent, Roswell, GA
Sun Sep 22, 2013
Dear Steffanie,

Any agent can help you to find a lease-purchase. There are no companies that focus on lease-purchase transactions solely.

Just to let you know that the number of properties offered for lease-purchase is very limited now since homes are selling pretty fast these days. Your selection will be very narrow.

Generally, Lease/Purchase never benefits the buyer.
Deposit is typically much higher on such transactions and will be forfeited if you can't complete the purchase. Also, seller would expect you to take care of the house maintenance, i.e. repairs as needed.

My suggestion would be find yourself a rental property; get in touch with a mortgage consultant to figure out your buying power and time frames.

Any quesitons - feel free to contact me.


Veronika Barash, Realtor®

Top Agent, Honorable Mention, KW

Outstanding Customer Service Recognition, KW




678.230.4235 c
678.287.4800 o

404.410.6983 f

Keller Williams Realty Consultants

695 Mansell Rd. Ste 120

Roswell GA 30076
0 votes
Rick Musto, Agent, Roswell, GA
Sun Sep 22, 2013
Steffanie - real estate agents can help you find homes that are listed with a lease/purchase option. The key is that you need to be certain that the owner of the property truly can offer that. I would be happy to help you with that as I do both real estate and mortgage loans. You need to be very careful in this area so make sure you choose someone with experience to help you out. Give me a call today and we can discuss your specific situation to determine if that will be a good fit. Good luck and I look forward to hearing from you.

Rick Musto, Realtor®, ABR®, SRES®
Managing Broker
Buckhead Home Realty | Buckhead Home Loans
Serving the Atlanta Metro Area
Mortgage Loan Originator
NMLS: 989741
Cell: 770-480-7699
Work: 404-419-1004
Fax: 770-783-3119
0 votes
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