Lease purchase .... interesting?
Is Lease Purchase an Option for You?
A Lease Purchase arrangement is a bit different than a lease option in that there is a specific closing date and price attached. It offers some stability for the seller, and some time for a buyer to arrange financing, finishing saving a down payment, or overcome other obstacles that may be in the way of todays’ financing.
Here is how the last transaction we brokered was structured:
Buyer agreed to pay seller $x for the home
Buyer agreed to pay seller $x for the down payment immediately
Buyer agreed to pay $x per month for rent
Buyer agreed to a closing date 3 years from the date of possession
We set up an escrow account that collected the buyers rent and paid the sellers mortgage directly so there wasn’t a risk of foreclosure to the buyer. And, we did offer a little more than market price for the option of being to close later, thus avoiding a short sale for the seller. Obviously, it does require some down payment, but it is typically less than a conventional loan amount.
For these particular folks, it was truly a win-win arrangement and the seller was able to use the lease amount to offset this payment and qualify for the mortgage in the new town he moved to. The buyer, who would not have been able to purchase right now, is happily settled into his new home.
This is, of course, all drafted by an attorney, set up in escrow, and a notice of interest filed at the court house to protect all parties involved. If you would like to learn more, or think this might fit your needs, call or email and we’ll see if we can find you a home you love!
Jenifer Owens Broker/Owner
BozemanMontanaRealEstate.net 2149 Durston Ste 33 Bozeman, MT 59718 Cell: 406-209-0022