Alternative to Buy*

There are many ways of buying a home, but sometimes a prospective purchaser is not ready to buy or is not certain to buy.  If this is the case, a prospective purchaser may consider the alternative of lease/option to buy.

A lease/option to buy is a contract between the seller and a prospective purchaser, where the seller agrees to lease the property to a prospective buyer with the option to purchase the leased property within a specific period.

How does a lease/option to buy works?
Normally seller leases the property to prospective buyer for a specific period with the provision that part of the monthly rental payment may be credited to the purchase of the property.  The rental payment may be credited to the downpayment, or to help with the financing, or may be applied to the purchase price.

The advantage of lease/option to buy  is that keep the option to buy open for the specified period, and  make easier to come up with downpayment, or qualify for a loan when the option is exercised.