What are the pros and cons of a residential lease with option to purchase?

Answer by  Dean (4035)

It depends on the terms of the agreement, how much you must put down and how long you have to cash out the owner. Sadly, if you can't obtain conventional financing now, it is unlikely you will be able to in 12 months, so proceed cautiously.

Answer by  ML (122)

The upside is that it would keep the property off the market while you reestablish credit, saving funds for closing or establish employment history required to secure financing. The downside, with today's market, you could run the risk of the property value declining prior to finalixing the sale and securing the financing on the property.

Answer by  snceflyf (448)

The pro is that you are able to live in the home before deciding to buy it. The con is that you throw some of your money away to renting.

Answer by  tamarawilhite (17883)

The pro is having first choice to buy it. The con is if you miss a payment, you could lose the option to buy.

Answer by  DavidS (1517)

The current owner has options to change their mind to not sell throughout the process. While leasing you are not allowed to make any structural changes and have to follow the guidelines of the lease. If you purchase then you can do as you please with your home.