Lease Options | Rent to Own 
Finding a rent-to-own house is one of the many ways someone with bad or no credit can buy  a house. You will often find them called names like lease/options, lease with option to buy, lease purchase, lease 2 purchase, rent with option to buy, rent to own, or rent to buy homes.
If you are a renter who is tired of paying someone else's mortgage and want to own your own home, this is one of many ways that you can buy a home. One of the drawbacks is that you will still need to purchase the home at a later date. This may be a problem if you have bad credit, because you may still need to qualify for a loan when it is time to purchase the home. If your credit can be repaired in several years, this may be a great way for you to get your home now, and good motivation to clean up your credit for the future.
So, let look at some of the ways a Rent With Option to Buy can benefit Buyers and Sellers. .
For Sellers:
  • Top sales price, even if demand is low: As a seller you attract more buyers who are willing to pay a premium because of the exclusive financing terms and value you're offering.
  • Higher than usual rent: Since you are flexible on your financing terms and are offering a tremendous value, you normally can demand a higher than usual rent.
  • Positive cash flow: More likely that you will have a positive cash flow because of a higher than normally rent.
  • Non-refundable option money: When a tenant/buyer signs a Lease 2 Purchase contract, you may  receive a non-refundable option deposit that is yours to keep should they default or decide not to buy. This swirl depend in the contract you are willing to agree with the purchaser,
  • Highest quality tenants, minimum risk: Because you are renting to people interested in buying your house. .they will have a vested interest in your property.
  • Tax shelter is held intact: Because you remain on the deed until the option is exercised, you maintain all of the tax benefits of ownership.
  • Largest market of buyers: In addition of marketing to traditional buyers. .you can add renters and investors. .right now, they are the majority of the buyers out there.
  • Peace of mind: It is safer than conventional rentals because the tenants want to take care of "their" home better than a conventional renter would.
For Buyers:
  • Faster equity growth: Equity accumulates much faster when there is not a 30 year mortgage yet. . 
  • Rent money is working towards purchase: Every month a portion of your rental payment (typically $100-$300) is credited towards your down payment and/or off the sales price agreed at signing.
  • Option money is credited towards purchase: Essentially this is your deposit money. . this will be credited to you at closing.
  • Minimum cash out of pocket: When you purchase a home the conventional way, you must pay at least 3% down plus closing costs and prepaid fees. When you buy with a Lease 2 Purchase, you only pay first month's rent and a small option deposit. This will save you between 25% and 85% every time you buy a home.
  • Profits from appreciation: Since the sales price is locked in before closing , any increase in property value will mean that your equity is increasing in the home.
  • Possible sale for a profit: Provide you have an assignment clause on your contract. .you are allowed to sell (assign) your option and just maybe . . you may sell it to a third party for a profit.
  • Increased buying power: When you buy a Rent W Option to buy.. .your monthly mortgage determines up to how much you should look for in a home.. . as opposed to your down payment if you would buy the home in a traditional way.
  • Credit problems okay: Qualification restrictions simply do not exist at this moment.You will be approved at the sole discretion of the landlord/seller based on your desire to purchase the property and his criteria that determines if you make enough money every month to meet your bills.
  • 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. If the prices drop. . you can drop the contract and you are not obligated to purchase it.
  • No taxes, less liability: Since you do not own the home (yet), you will not have to pay property taxes and your liability exposure will be dramatically reduced.
  • Quick move in time: You can typically take possession of the home in a week or less depending in availability. . you do not have to wait 30 days or more like in a conventional purchase.
  • Maximum leverage: You are spending very little of your  money to control a potentially very expensive, and very profitable, piece of real estate.
  • Time: Before you actually buy the home, you will have 12  to 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.
  • Minimal maintenance: Large maintenance problems or any maintenance problems that exceed a certain amount of money can be delegated to the landlord/seller.



To learn of more creative ways to rent with option to buy techniques if you are in Maryland, DC or Virginia, 


please give us a call at 240-426-5754