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I am wondering if anyone here has ever done a lease to purchase and what the experience was like for them? Any advice would be great<img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/smile.gif" style="border:0px solid;" title="smile">THanks OR is it better to just buy a house out right.....
 

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It really depends on the terms of the lease to purchase. The terms could be anything, and they are negotiable.<br><br>
IF you have the $$ and are going to be there for the long term, direct purchase would be better.<br><br>
With lease to purchase, you would probably be paying above-market-rent on the property, with $100 or so credited toward your down payment. A good deal for the seller!<br><br>
If the seller is actually considering <i>lease-to-purchase</i>, usually that means they are a distressed/very motivated seller. Is there something wrong with the property? Can you buy outright at a price much lower than asking? Have you looked into PA assistance programs for first time home buyers? Is the house in good condition?
 

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Is it a lease with an option to purchase? Or a land contract? They are two very different things.<br><br>
A lease with an option to purchase can be a very good deal for both of you - you get rent credited towards your down payment and the seller sells a house that may not have sold easily otherwise. Just make sure the terms are reasonable.
 

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We did it. It worked out well for us. Looking back, we probably paid about $5000 too much for our house, but honestly, on a $200,000 purchase, that's not all that much.<br><br>
We were renting, didn't have the option to go month to month (like we thought we would have when we rented that house--it's a horrible landlord gone wrong story), and knew that we wanted to buy when our lease was up.<br><br>
Leasing with option to buy gave us the opportunity to save up money for a down payment. It also let us shop around for a mortgage (we got a great deal) without feeling hurried.
 
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