These days, not everyone can afford to buy a home. Maybe you don’t have great credit or enough money for a down payment. If that’s the case, the path to traditional homeownership may look a little bit different for you. Berkshire Hathaway HomeServices Georgia Properties has Forever Agentssmwho specialize in finding the right lease-to-buy option that can help put you in the home of your dreams.
What Is a Home Lease With the Option to Buy?
A lease with the Option to Buy provides people with a pathway to homeownership without having to come up with a down payment upfront. Normally, an agreement is in place for a tenant to lease the property with an option to buy once the lease expires. Typically, a portion of the monthly rent goes toward the down payment.
BHHS Georgia Properties works with Home Partners of America, Inc. to help potential buyers who may not qualify for a mortgage just yet. This partnership will help these buyers lease a property with the intention of buying the home in the next three to five years.
Benefits of Lease to Buy Agreements
The benefits of a lease-to-buy property can vary. One of the most beneficial aspects of leasing to own is it allows the renter to build equity in a home they might otherwise not be able to afford to purchase. Other benefits of a lease to buy property are:
- Allows time to rebuild bad credit
- A portion of the rent goes to a future down payment
- Getting to know the home and neighborhood to see if this is where you want to settle down
- Locking in the purchase price of the home
A lease-to-buy property can allow a person to get into their dream home sooner than they might have thought.
Possible Disadvantages of a Lease to Buy Agreement
If you are considering a lease-to-buy agreement to get into the home of your dreams, there are some potential disadvantages you should consider:
- Higher rent, since a portion is going to a down payment
- Potential homebuyers may have to cover maintenance costs
- If the potential homeowner doesn’t qualify for a mortgage by the end of the lease, money could be lost
Other unforeseen circumstances could affect a lease-to-buy agreement, including a change in employment or the owner defaulting on the mortgage. Also, if the home price is locked in and the market goes down, you will still be locked into the higher price agreed on in the lease.
Tips for Those Interested in Lease-to-Buy
If you are interested in a lease-to-buy option, you need to do your homework before buying real estate. Some items you should think about before agreeing to a lease-to-buy contract include:
- Consulting a real estate lawyer: Let an expert read over the lease-to-buy agreement.
- Getting a home inspection: Know what you are getting into and what potential projects may need to happen in the future.
- Meeting with a lender: BHHS Georgia Properties works with Prosperity Home Mortgage, and many branches are located inside one of our BHHS Georgia Properties offices.
- Getting a seller’s disclosure: Know as much about a property as you can before you sign on the dotted line.
Georgia real estate experts at BHHS Georgia Properties are ready to work with potential home buyers to make lease-to-buy options a reality.
Is A Lease-to-Buy Option Right for Me?
If you lack good credit or enough money for a down payment, you could be looking at a lease-to-buy option to get into your dream home. A lease-to-buy option could make sense for you if:
- You are not eligible for a mortgage right now
- The property doesn’t qualify for a conforming loan
- Home prices are expected to rise, and you want to lock in the purchase price
- You can afford higher rental payments
- You don’t plan to move for several years
Make sure to speak with your real estate agent to determine if a lease-to-buy contract is right for your lifestyle and financial goals. Don’t forget to download our real estate planning guide to begin your journey!
Choose BHHS Georgia Properties to Find Your Next Home
Whether you are looking to buy or lease to buy your next home, look to the talented Georgia real estate agents of Berkshire Hathaway HomeServices Georgia Properties. We can help you on your journey to home ownership. Visit one of our many offices around the state to find the perfect agent for you!