Why “Lease to Own” May Be Your Ticket to Home Ownership

Stop me if this sounds familiar…

You’ve been renting an apartment now for a few years, maybe longer. Roommates have come and gone, but now you’ve grown up, gotten a job, made some money and can now afford to have “a place of your own.” A nice two-bedroom apartment with an elevator and underground parking. It’s nice. Really nice. You (and perhaps your significant other) like having your own space so much that you’ve now had time to notice the little things that make apartment living… well, less exciting: loud neighbors, funny smells in the hallway, rising rent.

Naturally, your mind takes you down the road to the next logical step in your journey… home ownership. You’ve even got an account on Zillow with a couple dozen saved homes you love but know you still can’t afford. It’s ok. It’s important to dream and set goals. But remaining realistic is also important.

Investing in a home is just that — an investment. It is the smart financial move. Unfortunately, making it a reality comes with some high hurdles. You need to have good credit. You need to qualify for a loan. You need money saved up for a down payment. You also have to earn enough income to cover things beyond your monthly mortgage payment… things like insurance, random repair bills and routine maintenance every home will require.

Are you ready for all of that? How will you know when you are? They’re hard questions to answer… but there’s an option available from Verity Homes that can help you discover the answer.

What Is a Lease-to-Own Option?

Simply put, it’s a way for would-be homebuyers to get their feet wet, experience what homeownership feels like and requires… all while leaving the option open to essentially back out if they’re not ready to buy. Here are the basic features:

• You sign a regular lease agreement — usually for a couple years vs. a standard 6-month or 12-month agreement
• You get a home — not an apartment or condo — but a home to call your own
• Along with the lease, you sign an agreement that allows you to purchase the home at the end of the lease (or at some point during the lease) if you so choose
• While you’re “renting” you’re also building equity in the home — instead of seeing ALL of your monthly rent check go to your landlord, a percentage of it gets saved and put towards your eventual down payment
• For two or three years, you get to experience home ownership, try it on to see if it fits… no obligation to purchase, but the option is there if you fall in love with the home, the neighborhood, your neighbors, the schools, the parks, etc.

Who Should Consider “Lease-to-Own” Options?

Not to sound overly cliche, but the world is changing. Home ownership isn’t necessarily a given anymore. People are waiting until they’re much older to purchase their first home… for a number of reasons.

Lease-to-Own options can be a great fit for any first-time-buyer that isn’t sitting on a big pile of cash (most of us). They’re also a great option for a growing percentage of today’s workforce: freelancers, independent contractors and anyone else living in the “gig economy” that may not have a perfectly steady paycheck and years of verifiable work history that banks require to qualify for a mortgage.

Lease-to-Own options are also great for anyone who simply isn’t sure if they’re ready to own a home… but obviously still need a place to live. You get to experience life without shared walls, what it’s like to have your own backyard (and mow it!) and throw a party without worrying about the guy on the floor below you calling you in for a noise complaint.

It’s a trial run. An adult trial run, but still with the option to move away and move on without feeling stuck in a home you don’t truly love… or with a homeowner’s lifestyle you ultimately aren’t ready for.

Home ownership remains one of the safest, wisest lifelong investments anyone can make. A Lease-to-Own option makes that goal a bit more realistic for anyone who can’t walk into a bank and walk out thirty minutes later with a mortgage loan in hand.

Sound familiar? Let’s talk more about it… I’m sure you have more questions!

Call us at 701-566-0215, or email me at benjamin@verityhomes.com.