What Is a Lease Purchase Agreement?
A lease purchase agreement can be a good option for buyers who want a home but need a little extra time to qualify for a loan or come up with alternative funding to purchase a home. The downside to a lease purchase agreement is if the buyer violates the agreement, the seller may terminate the agreement, and the buyer is left with nothing. A lease agreement is not valid if the home has a prior mortgage with a due-on-sale clause.
