Lease Options Are an Alternative to Bank Financing

When mortgage credit tightens, buyers and sellers consider alternative financing options such as lease purchases and lease options.

The two are not identical, but are synonymous with rent-to-own. Both involve owner financing, so the buyer is not obligated to obtain financing from a conventional lender, at least for the term of the agreement. Another under-utilized financing term is option. But options are separate from a lease option and a lease purchase. Sound confusing?

Options, lease options and lease purchases are nothing new. They are financing instruments that have been used for decades. In fact, I had a lease option to buy in 1980 an oceanfront home in Ventura, CA. But the devastating winter storm of 1981 crumbled its sea wall and sent that home sliding into the ocean . . . read more about lease options and lease purchases.

More Articles by Elizabeth Weintraub, click below:

• Buying vs. Renting
  
• Top 10 Home Buying Mistakes
  
• Top Home Buying Tips

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Technorati tag: lease options lease purchases

_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}