The American Dream has been put on hold for many deserving families as our country tries to climb out of the current real estate mess.  The dream of home ownership is out of reach for many because they have credit issues, high debt ratios, or are self employed.

I’m from the government and I’m here to help. It’s no secret that lax credit requirements by banks (caused by the government pressuring banks to lower requirements to get more people into home ownership) was the reason why we got ourselves in the current real estate problem. The government often means well but its very involvement usually results in situations being worse off that if left alone.

As a result of Uncle Sam “tinkering” in the housing market, banks now have stricter requirement for someone looking for a loan to purchase a home.  Down payment requirements have gotten back to more conservative levels 10 – 20 % like in the “good old days.” Many now just don’t have those large sums of cash.  This has caused many families to put their dream of home ownership on hold.

However, there is an alternative to conventional bank and mortgage lenders – Lease Option.  With a Lease Option, you can get over many of the show-stopping hurdles mentioned above.  You can make a reasonable down payment, go ahead and move into the home, while working on credit issues to become qualified for a mortgage. Usually after a year or two of diligent work on credit issues you can refinance the home and close on the home.

A marriage made in heaven. There are also benefits of lease purchasing to current owners who need to sell their house.  That makes for a marriage made in heaven. Often a Lease Option purchase is preferable for them instead of waiting for buyers with perfect credit. These sellers will work with us to put good families in their homes via Lease Option so they can move their inventory.

Here are 7 benefits of purchasing using a Lease Option.

1. Minimum Cash Out of Pocket.  Usually just a 3 – 6% option fee is required to move in verses 10 – 20 % now required by most banks.
2. 100% of the Option Fee is credited directly towards the purchase of the home.
3. Rent Money is Working Toward the Purchase of the Home.  Every month a portion of your rent payment is applies towards the purchase price of your new home.
4. Equity 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.
5. Work with Credit Problems - Past credit issues (bankruptcy, foreclosure, divorce etc.) are issues that can be alleviated over time.
6. Quick Move-In Time. Often you can move in to your new home 1 – 2 weeks compared to 4 – 8 weeks often seen with conventional home buying.
7. Time to repair Credit. Time heals most wounds. It’s the same with credit. You will have 12 – 24 months to repair your credit.

Don’t let today’s challenges keep you from your dream.  Lease Option is a great way to speed up the process of turning your dreams of owning a home into reality.

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