Time to Improve Credit – the rent-to-own agreement allows the home buyer time to improve their credit score.  It also allows them to do this while living in the home.  Choose the lease period that will give you the best opportunity to improve your credit score and get approved for a mortgage.

Save for Down Payment – For many, having the down payment needed (up to 20% of purchase price) can be difficult.  The lease option/rent-to-own opportunity allows buyer’s time to save towards the down payment.  Often the lease option agreement will allow the buyer to save monthly credits toward the down payment with each monthly payment.

Experience the Home before the Purchase – you do make a partial commitment to the property once the option is paid.  But, with the lease option you do have the benefit of trying the home before making the final commitment of the purchase.  Most of the time there are no issues, but if the buyer were to realize that the home is not right or the overall situation is not right, they have the ability to walk away without going further and purchasing the home.

Adding Non Cash Equity – Homes need upkeep. Agreeing to take on certain responsibilities of the home maintenance while renting can add equity for the buyer. If agreed upon when the buyer pitches in to do repairs or upgrades, the value of the property is enhanced. In addition, the buyer can add the value of the work performed and agreed upon to be included as an Option Credit.

No Property Tax Burden – During the lease term and before purchase the buyer is not obligated to the property taxes yet.  Until the buyer takes ownership the seller is responsible for the property taxes.  This is significant, especially when saving for a down payment or working to improve credit scores.

Homeownership – For some, this maybe the only way homeownership becomes real.