A New Lease Purchase on Life?

I recently read an article in the Washington Post about renters seeking out lease options as an option to an immediate purchase... You can read the article online http://www.washingtonpost.com/wp-dyn/content/article/2008/05/16/AR2008051600310.html?sub=AR .


Well my thoughts are good luck! Most buyers are opting to Rent-to-Own in the Northern VA real estate market because they just don't qualify for a loan today. With historically low interest rates and sales prices (including many "all closing costs paid by seller" homes) why would potential buyers want to wait to purchase? The answer is very simple in Fairfax and Loudoun Counties.. because they don't think they can afford too! It's the mindset of the first and second time home buyers.. "Let's wait until the prices go down even more.. then we'll see if we qualify for a loan." Not such a good idea... Many buyers in this market should take the time to educate themselves on the many FHA and First Time Home Buyer programs available today. Rent-to-Own many times means increased rental prices as the home owners have built in a "set monthly rental increase" because they know they are going to have to contribute a set monthly portion back to the tenant should they buy in 12-24 months... What does this mean? More potential monthly income to the landlord... that's about it.


That's not to mention the fact the seller could go into default on their home and YOU the tenant are out with NO Option To Purchase. My suggestion is this, talk to a lender now, work out the financing terms or work on the issues with your down payment any credit score issues that could prevent you from owning a home down the road.

You can Search for Northern VA homes for sale on http://www.JasonDemers.com based on your monthly rent payment. You can figure around $2,400/mo should get you near 400K with little or no down payment. Contact your lender for specifics. Sellers are willing pay just about anything to break your lease and will more often than not pay all your closing costs TODAY, not in 12-24 months.