In today’s credit crunch, financing is hard to find for home buyers and buyers are hard to find for sellers. An alternative to finding a loan that is usually done during slow real estate market is lease options.
Lease options means to lease or rent a property with the option to buy it in the future. As the lease-option is signed, the future price of the property should be fixed.

Lease option involves an up-front payment of some amount to purchase the home which amount varies, but still usually not as much as a mortgage might require. Sometimes you are given the chance to pay your monthly payment larger than normal and the excess of the payment is paid towards the purchase of the house.

This method to purchase a house is often used by tenants who have a poor or limited credit history. They usually don’t qualify for a typical mortgage.

If you are thinking of purchasing a home but are having problems to get financing, lease option may be an alternative for you. But do your own research first because with advantages for the buyer, it also has disadvantages.

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