Purchase Options

• Apply for a mortgage pre-approval -  click here
• One-on-one assistance with flexible financing options
• Lease Options
• Land Contracts
• Rentals

What can All Credit Considered.com do for you?

We are able to help you find out if you may be eligible to purchase a home now or sometime in the next 24 months.  The process is very simple.  You fill out a one page credit application and we will have our mortgage broker review it.   We will then be able to tell you if you are eligible to purchase a home immediately or if you have some work to do in order to  possibly be eligible in the next 12 - 24 months.  

We often find that someone is eligible to purchase a home at 80% of purchase price immediately, however he does not have the 20% down that he needs to be able to move forward with a deal.  This is a situation where a Lease Option or Land Contract may be appropriate to help him purchase the home over time.  

What is the difference between a Land Contract and a Lease Option?

Lease Option

In this option, the buyer and seller agree to a purchase price and the length of the lease option agreement.  The length of the lease option is based on how long it will be until the purchaser may be eligible to get financing to purchase the home. We can never guarantee that a buyer will be eligible to purchase a home at the end of a lease option period.  It is up to the buyer to rectify any credit problems or build any new credit necessary for approval.

A small down payment of usually 3% to 5% is required and will apply to the purchase price.  An agreed upon portion of the monthly lease payment will also apply to the purchase price.  This is exactly what the name implies…a lease with the option to buy the home after a period of time.   The seller continues to pay the mortgage, taxes and homeowners insurance.  The buyer needs to carry renter’s insurance to cover the contents of the home.

Land Contract

In this option, the buyer and seller agree to a purchase price and the length of the contract.  The Land Contract is recorded at the county court house, giving the purchaser a recorded vested interest in the property.  Over the course of the land contract the purchaser pays a monthly payment to the seller.  The payment is amortized over a 30 year note at a set interest rate, so a portion of that payment will apply to the principle balance.  The seller continues to pay the mortgage,  taxes and home owners insurance on the property.  The buyer needs to carry renter’s insurance to cover the contents of the home.

The down payment is generally 10% of the purchase price, but could be less.  It is a higher down payment simply because it is a “more” official way to buy a home over time since the purchaser has a recorded vested interest in the property.  At the end of the Land Contract period, the sale of the home can be treated as a refinance instead of a new purchase.  The home is refinanced and the seller’s name is removed from the deed.

It often easier to refinance a home for a buyer in a Land Contract than to purchase a home outright at the end of a Lease Option, however,  the larger down payment required for a Land Contract often makes the Lease Option a more appealing choice.