A portion of rent goes toward your down payment .
The home's price is often locked in at the start of the lease, protecting you from future market spikes—though you may overpay if market values drop . Types of Agreements Lease-Option Lease-Purchase Commitment You have the choice to buy; you can walk away . You are legally obligated to buy . Financial Risk rent to buy homes in queens ny
Gives you time to boost your credit score for a better mortgage rate . Cons: A portion of rent goes toward your down payment
If you don't buy, you may be sued or face heavy penalties . Almost always requires an upfront option fee . May not always require an option fee . Pros and Cons for Buyers Pros: Lock-in Price: Secures a price in a rising market . You are legally obligated to buy