Comparison of Lease Purchase with typical Bank Mortgage
Lease Purchase Bank Mortgage
30 year amortization yes yes
You receive
equitable title yes yes
You get equity
buildup yes yes
You benefit from
appreciation yes yes
You get interest
deductions yes yes
Must have good
credit rating no yes
Must pass lenders
strict qualifications no yes
10% - 20% down payment
with ‘seasoned funds’ no yes
$3,000 - $6,000 paid for
‘closing fees’ no yes
10 -15 day grace period no yes
Delay until closing 1 day 30 - 90 days
Lose the home if you
do not make the
payments yes yes
You receive all the benefits of home ownership that you would receive through a normal bank purchase, (except the grace period).
