Lease-Purchase
Lease-Option or Rent-to-Own

Buyer Benefits

Here are some features and benefits for the tenant/buyer:

* Faster equity growth: Equity accumulates much faster (five times or more!) than with conventional financing through a bank or lender.
* Rent money is working towards purchase: Every month a portion of your rental payment (typically $100-$500) is credited towards your down payment or off of the sales price.
* Option Fee money is credited towards purchase: When you sign a Lease 2 Purchase contract, you will pay the seller an Option Fee deposit. This money is your vested interest in the home and will be fully (100%) credited to you when you buy the home. The Option Fee deposit is forfeited if you do not close on the purchase of the property. All terms and conditions are determined by the amount of the Option Fee.
* Minimum cash out of pocket: When you purchase a home the conventional way, you must pay at least 5-20% down plus closing costs and prepaid fees. When you buy with a Lease 2 Purchase, you only pay first month's lease amount and a small option deposit, typically 3 - 10%. This could save you up to 17% every time you buy a home.
* Lower or no down payment at close: Since you have given the seller an option deposit and you have been receiving monthly rent credits, there will  be less left to pay for a down payment at closing when you purchase.
* Profits from appreciation: Since the sales price is locked in before closing (as specified in your agreement), any increase in property value will mean that your equity (what it's worth minus what you owe) is increasing in the home.
* Increased buying power: When you buy a Lease 2 Purchase home, you can put down as little as first month's rent and a 3 - 10% option deposit. Compare that to a typical bank or lender who requires 5-30% down plus closing costs and prepaids.
* Credit problems okay: Qualification restrictions are less severe. You will be approved at the sole discretion of the landlord/seller.
* No lengthy escrows or mortgage approvals: Your approval will be based solely at the discretion of the landlord/seller instead of a lender who can take up to a month (or longer) to render a decision.
* Control of the home: You will be put in full legal control of the home for a specified period of time without actually having to own it.
* Quick move in time: You can typically take possession of the home in a week or less, instead of conventional move in times of one to three months, after your offer was accepted.
* Maximum leverage: You are spending very little money to control a potentially very expensive, and very profitable, piece of real estate.
* Time: Before you actually buy the home, you will have 3-24 months (depending on your agreement) to repair your credit, find the best interest rates, investigate the home and research the neighborhood and/or schools.
* Regular maintenance: You will be responsible for the regular, monthly expenses. Large maintenance problems or any maintenance problems that exceed a certain amount of money can be delegated to the landlord/seller.
* Privacy: Your name will not be on the deed or in the public records until you exercise your option to buy.
* Peace of mind: You will have full control of the home and can maintain or improve it however you wish.