Written By: Kim Payne, Folsom Mortgage, Folsom, CA
“Rent to Own Your Next Home” “No money down”!
This is an old standby way to buy a home. Call it what it is – a Lease Option – a lease for a set period of time with an option to buy the property at an agreed upon price by an agreed upon date. A second method to sell the home would be a Contract For Deed—aka Land Contract.
We are hearing these phrases more and more these days and blogs are brimming with advice on how to do this. Some of the information is just plain wrong!
So, what’s it all about? As a loan officer, you need to know so you can advise agents, sellers and future homebuyers on what to expect when buying a home on a lease/option or land contract and what documents they will need somewhere down the road.
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