Homeownership is a very common goal across the country, but it may feel like a challenging one to fulfill. Luckily, you don’t have to go it alone. We are all at different stages along our life journey, and the Golden Lenders team takes pride in using state of the art processes to create a reasonable avenue to homeownership for our clients. Conversely, not every lender you find will have your best interests at heart. When individuals approach big corporations for their guidance, they are often dazzled by big promises that are quite frankly too good to be true. This is particularly true when it comes to the subject of leasing to own.
What is Lease to Own?
A lease-to-own agreement partially mirrors a traditional lease agreement, in that a fixed rate and leasing term are agreed to between tenant and landlord. However, the agreement also provides the tenant the option to purchase the home before the lease expires.
On paper, this seems like it would be a great choice for homeowners with a shaky credit score or low funds on hand. However, there is so much room for fraud and deception in lease-to-own agreements.
Common Examples of Lease to Own Fraud
- The house is listed at a price well above its market value. Even if you have the means to make the purchase before the term ends, you will be overspending to do so.
- Sellers advertise a house for lease-to-own that isn’t actually their own in order to collect up-front fees from their tenant.
- Sellers advertise a home and fail to continue paying monthly bills while the tenant occupies it, resulting in foreclosure.
- The house is in much worse shape than advertised to the tenant.
The Down Payment Dilemma
There is a lot of room for shady practices when it comes to lease-to-own agreements, but what should one do if they’re having trouble getting approved for a mortgage? At Golden Lenders, we are usually able to work with a down payment as low as 3% to allow our clients to qualify with the most competitive interest rates on the market. That means with a down payment as small as 3%, you can enjoy the perks of homeownership right away rather than potentially having the opportunity slip through your fingers in a lease-to-own agreement scam.
If that is outside of your means, we are happy to serve as your ally as you explore lease-to-own alternatives. The scams outlined above can largely be avoided by steering clear of owner deals and instead relying on a trustworthy brokerage with years of experience helping clients secure a foothold to home ownership through lease-to-own agreements.
Make an Informed Decision on Your Home Purchase with Golden Lenders
Golden Lenders helps home buyers in Colorado, Florida, California, and Ohio understand the different types of purchasing options that are available and provides loans to help people achieve the dream of homeownership. Since the specifics of which purchasing method to choose is dependent on a variety of factors, we encourage you to call us for more information and find out which is right for you. Our number is (303) 482-2361, or you can send us a message.