Lease-to-Buy May Be Good Option

Realty Times (09/12/08); Chongchua, Phoebe
More and more people who are struggling to obtain financing for a home purchase are finding a viable option in lease-to-buy agreements, which enable renters to rent a property with the option to purchase the residence at the end of the lease term. In particular, buyers with poor credit are finding that this approach gives them an opportunity to improve their credit while moving them in the direction of homeownership; and sellers find that properties that once sat vacant now offer a stable cash flow. The concept also appeals to those prospective buyers who are unsure if they are ready for all of the responsibilities and additional costs that come with owning a home. Now, a growing number of condominium developers are testing rent-to-own programs in hopes of eventually getting units sold.