Who loses in a lease to own deal?

Deals are all around us. From the black Friday to cyber Monday, from deals we receive from trinkets on our key chain. I've always wondered what draws us to getting a deal and boy do I love a good deal. Whether you are buying high quality, hormone free, hot dogs around the July the 4th holiday or when you find your new favorite ice cream buy 2 get 3 free. Your brain releases Dopamine and makes you feel like you are on top of the world. Shouldn't you feel this way when you buy a home? . Well, how does the typical "buying of a house" work?  

First, you need to find a house. This can take days, weeks, or even months depending on your budget, the square footage you are looking for, what location, and the features you are looking for in a home. Even if you find the perfect home, you will then have to put together your proverbial "ducks in a row". I now call it "painting the mortgage broker a perfect picture". This is the part where you show you have  all of the following:

1) A steady W-2 income job.( Business owners must have 2 years of solid tax returns to be considered fit to be a home owner)

2) A satisfactory Debt to Income ratio (This varies from bank to bank but typically 45% is an average number)

3) Your FICO credit score must be at a minimum of 580 for a FHA loan with a 3.5% down payment, and 640 for a USDA loan you are not required to have a down payment. (Restrictions apply)

4) Anything else the underwriter deems as important. (Explanation of why you want this house, why should they ignore an outstanding medical bill, etc.)

This is where buying a house has changed. Prior to 2008, it was a bit easier to buy a home  but now it is more difficult than ever. So let's say you are able to buy this home. I'd say congratulations!! What if you get turned down for the home. Do you feel you are less of a person after you have pictured yourself  living in your "dream" home? Whether you believe it not, you "should" have an opportunity to own a home. So how do you do it? The best way is a lease to own property. This gives you the opportunity to pre-own a home while you build up "sweat" equity, build up a down payment, and get your "picture" painted so when the time comes, you can qualify.  I've heard some say that lease to own homes are predatory owners trying to take advantage of lower income tenants. Personally, the entire banking system is predatory and is built for you to lose, but that is another topic for another day. (Let me know if you ever want me to explain this one.) In my opinion, everyone deserves the opportunity to own a home and I'm excited about win/win situations. It is a core piece of the foundation of this country. Ever heard the phrase life, liberty, and the pursuit of happiness? 

In reality, the only one that loses in a lease to own deal is the buying and/or selling realtor.  The seller contacted the buyer directly so there is no need for additional commissions to be paid to anyone. Instead, money can be put towards either repairs to your future home, as rent for your home, or just as a part of your future mortgage payment.

If you would like an "opportunity" to own a home but have not because you either have less than stellar credit, own a business without 2 years of tax returns, or maybe you just took a new job and do not have enough of a job history to satisfy an underwriter. Whatever the reason is you can still own a home by getting a fixer upper, put in some sweat equity,  and having the opportunity to "pre-own" a home. 

If this sounds like you or if you would like to know more, click here to fill out an application to begin your journey to being a home owner today!!