Lease to own is a way to buy a home during the lease period. The buyer leases the house until the buyer decides to buy a house. During the lease, the customer finally buys the house.
Buyers can choose between leasing or rental options. The buyer will complete the purchase of leasing a house, the buyer may decide to lease option to buy a home. Here is a list of the advantages of the buyer and the seller of the home.
Purchase home with bad credit history
Financial institution uses a credit score to see the buyer's ability to provide mortgage loan repayment. But above 660 local customer a good credit history score. Sometimes, the debt gets a little out of hand. And, the buyer goes by the bad credit score.
Lease purchase allows the buyer to catch up with a credit score. Duration of the lease contract gives the buyer time to repair a bad credit rating. Typically leases range from one to three years. Thus, the buyer has 1-3 years of repairing bad credit rating.
Locks house price
The seller and buyer agree on the price of the house. If the buyer is willing to make home buying, home buyer applies for financing the agreed price of the house. If the home increases in value, the buyer can resell at a higher price at home.
Property begins to grow faster
If the buyer is waiting to buy a house, the home may increase in value. The home may increase in value in such a way that homes are unaffordable to buy a home. How do I lock the house price the buyer, the buyer gains equity from the house immediately. By the time of purchase, at home to increase in value. Thus, the buyer gains home equity.
Try it out before the actual purchase
The buyer may try to bring home. The buyer may be aware of any defects in the home while the buyer is renting. If the buyer is comfortable with the place and a home buyer can go ahead with the purchase of a house.
There is no or low closing costs mortgage
Rent includes rent and premium. The premium is added at the time of purchase. And the bonus is used as a credit to buy a home. The premium can be large enough to pay off down payment and closing cost mortgage financing.
Costs less to maintain
The seller pays for the property, the buyer pays the rent and maintenance. The seller pays the real estate tax, insurance and repairs. After the customer actually buys the house, the buyer shall pay property tax, insurance and repairs.
Tax Deduction
The seller still owns the home, but the buyer still pay the rent. The seller may claim a mortgage interest. Mortgage interest tax deduction is a useful way to cut taxes every year. A large part of the mortgage payment, mortgage interest. Mortgage loans are not the biggest launch of mortgages. Mortgage interest rates gets smaller over time.
