Lease With Purchase Research Paper
Is a Lease with Purchase Option A Good Choice for You?
Are you having trouble meeting the bank's strict guidelines for obtaining a mortgage? A lease with purchase option is a viable alternative for anyone looking to buy a home. Understanding what this purchase option really is and what it involves will help you make an informed decision.
Since the housing bust of a few years ago, lenders have toughened up their lending guidelines, making it harder for many people to qualify for a mortgage. Their debt-to-income ratio may be too high. Their credit scores may be just a bit too low. Their down payment may be lacking. All of this makes buying a home very difficult these days.
Fortunately, there are alternatives available. Lease with purchase …show more content…
This fee locks in the purchase option and lowers the monthly payment.
Pay the full monthly payment and have part of it go to the option fee.
Not pay an option fee.
The option fee will be applied as a closing credit at the end of the lease, if the renter decides to exercise the option to buy.
In addition to the option fee, a portion of the monthly rental payment will be applied towards the closing as well. For every month's rent paid, a credit of $350 is applied towards the closing. A 12-month lease would accrue a $4200 credit. This happens whether or not the renter decides to pay the option fee or not.
Here is an example. The monthly rent on a home is $1500. You pay a $3600 upfront option fee. That reduces your monthly rent by $300 ($3600/12). If you decide to purchase at the end of the lease, you would have a total of $7800 to be applied at the closing.
The lease with purchase option is an alternative that makes purchasing a home possible for many people. If you want to learn more you need to contact IPS Amarillo. We have many properties available in Amarillo and surrounding areas. For more information, give us a call at 806-220-6816 or contact us via email. You can also visit our offices at 5809 S. Western St. #260 in
Are you having trouble meeting the bank's strict guidelines for obtaining a mortgage? A lease with purchase option is a viable alternative for anyone looking to buy a home. Understanding what this purchase option really is and what it involves will help you make an informed decision.
Since the housing bust of a few years ago, lenders have toughened up their lending guidelines, making it harder for many people to qualify for a mortgage. Their debt-to-income ratio may be too high. Their credit scores may be just a bit too low. Their down payment may be lacking. All of this makes buying a home very difficult these days.
Fortunately, there are alternatives available. Lease with purchase …show more content…
This fee locks in the purchase option and lowers the monthly payment.
Pay the full monthly payment and have part of it go to the option fee.
Not pay an option fee.
The option fee will be applied as a closing credit at the end of the lease, if the renter decides to exercise the option to buy.
In addition to the option fee, a portion of the monthly rental payment will be applied towards the closing as well. For every month's rent paid, a credit of $350 is applied towards the closing. A 12-month lease would accrue a $4200 credit. This happens whether or not the renter decides to pay the option fee or not.
Here is an example. The monthly rent on a home is $1500. You pay a $3600 upfront option fee. That reduces your monthly rent by $300 ($3600/12). If you decide to purchase at the end of the lease, you would have a total of $7800 to be applied at the closing.
The lease with purchase option is an alternative that makes purchasing a home possible for many people. If you want to learn more you need to contact IPS Amarillo. We have many properties available in Amarillo and surrounding areas. For more information, give us a call at 806-220-6816 or contact us via email. You can also visit our offices at 5809 S. Western St. #260 in