Lease Purchase contracts are going to be the next wave for Charlotte Real Estate and likely across the nation. In today's economy, many people can no longer get financing. This is due to a wide variety of reasons and the reasons vary dramatically. So how do lease purchase agreements work?
For the Charlotte Home Seller: In today's Real Estate market many homes simply are not selling. The economy has strangled the perspective buyers so we must look for other options. A lease purchase may work for you. A lease purchase basically allows you to sell you home today and close a year or so from today. For the following year, the "buyer" will pay you rent (with interest) for your home; you are the bank for the year. Is this a benefit? It depends. It takes your mortgage payment away, secures a non refundable security deposit (compensation fro the delayed closing). The price is negotiated today. "IF" the home does not appraise at the time of sale, you negotiate a new sales contract. Unlike a rental, the maintenance is taken care of by the "buyer".
Can the owner now get a new home loan? It depends. If you are moving local then you must have 25% equity (current bank appraisal) for an FHA loan and 30% equity for a conventional mortgage. If you already have two homes and straining to make ends meet supporting two mortgages then the lease option may be a great life preserver.
For the Charlotte Home Buyers, it allows you to get into a home and have your income established to qualify for a new mortgage and/or correct minor credit issues so that you can follow through with your purchase. You can move into your home, not be hindered with a double move the following year and keep your family in your home, neighborhood and schools!
Contact em today and learn more. I have resources I work with regularly and we can make your dreams become reality!