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What is a rent to own, or lease option?
A lease-to-own house purchase (also "rent-to-own purchase" or "lease purchase") is a lease combined with an option to purchase the property within a specified period, usually 2 years or less, at an agreed-upon price. The buyer must have a down payment; however in some cases it is possible to earn 'sweat equity' as part of the down payment.
During the lease option period, the buyer assumes the financial responsibilities as if he/she owned the home, including the monthly payment, insurance, payment of real estate taxes and all repairs. Upon an agreed period of time, it is then the purchaser’s responsibility to make a 'balloon' payment for the balance of what is owed. This is done through obtaining a new mortgage. The GMS Financial Group works with our buyers to improve their credit score over time to be able to qualify for a mortgage in the future. The initial term of a lease/option payment includes principal and interest. Over time this will add to the purchasers equity and can be a determining factor in the mortgage qualification. Our team will work closely with you to insure you will qualify for a competitive rate long term mortgage.
Contact The GMSC Financial Group to begin the process of finding the right home that you can afford!