New lease option program takes a minimum of a year to qualify. If you have been renting or leasing a house or condominium for at least one year and have a set price to buy that was established a year or more ago, then you have all the ingredients needed to make this happen. When you are ready to execute the purchase contract the house will be appraised and if it has gone up in value the difference between the current value and your purchase price belongs to you. This is your down payment or if you can and want to qualify for 100% financing you can pull this cash out of the house when you buy it. Amazing, but true!
How can you make this work for you. Good negotiating will certainly help. Here are a few points that you can use to get the price discounted from the start:
1. No real estate commission which saves the seller up to 6%.
2. No time on the market while the property is for sale. You will be paying
rent until you purchase the property.
3. No worry about the inspection as you will already know what is wrong with
the property, if anything.
4. No negotiations with prospective buyers and their agents.
These points can mean dollars in your pocket and can help you get into the property even if your score doesn't reach 600 on your credit report. If you get the discounts you need your purchase could be 85% or 90% of the fair market value which you can qualify for with a score less than 600.
Your dream can be a reality in one year and you have the opportunity of not only getting a place of your own but increasing your net worth during the time you are waiting to close on your new place. Using a purchase price of $400,000 and your ability to get a 10% discount your purchase price will be $360,000. Even if the house or condominium doesn't appreciate during the year you still have gained $40,000 in equity which is yours. Should the house move up 5% in value during the lease period you now will have an additional $20,000 in equity.
Last but not least is what happens if the value of the house goes in the other direction during the lease period and your purchase price is higher than the value. One, you don't have to exercise the purchase contract or two you can renegotiate the contract with the seller because he is going to lose the sale and likely will not be able to sell it to someone else at a higher price. It appears that either way, the value going up or coming down, you are covered. Now it is your turn to go out and make it happen.
As in most things we covet or dream about in life they are generally available to us if we use our intellect and common sense and give the plan you develop the necessary massive action it will take to make it happen for yourself. I am sure your can do it and besides if anything comes up that you need help with I am just an email away. There is a home in your future and hopefully a Chevy in mine.