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Lease-Option |
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exactly what is entailed in buying house when you want to rent within the intention of buying. I asked someone and they seemed to think it was too complicated. I believe this is the only way I can get house right now. Is this a bad way to go and if so, why. |
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A lease-option arrangement allows you to move in as tenants with the right to buy the property later at a specific price, if you want to. You're not obligated to do so. Sometimes part of the rent goes toward your down payment if you do buy. But in most cases you're still going to have to qualify financially for a mortgage loan, sooner or later. If you couldn't, you would remain as ordinary tenants till your lease was up.
A land contract allows you to move in and buy on a sort of installment plan. With that, the seller usually acts as your bank, collecting the money monthly. Sometimes the place is then deeded to you half-way through the payment schedule, if everything is going well.
These are indeed complicated documents, and you must involve your own real estate lawyer to make sure your interests are protected. But you and the property owner can decide what arrangements you want before you sign anything. |
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Edith
Originally published on June 10, 2008 |
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