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Answers (2)
- Jim Ventura, "rktekt"
- Contributions:15
I don't see the question here - just a statement - "We just entered into a lease-option with the owner" ok....
Here are a couple of thoughts, since I don't see the question.... first, I'll put my mortgage broker hat on - your agreement should state how much is rent, and how much is option money each month and at the outset for your future lender to consider this as a part of your down payment.
Second, real estate broker hat on now - the agreement should specify the use of an escrow company / service to handle the monies each month. Otherwise, how do you know your sellers are paying the mortgage, taxes, etc.? Unfortunately, if you trust the seller to make the payments, that money may never reach the lender - one day you're on the street, option monies gone, seller now in bankruptcy...
Many other aspects to a proper lease option, make sure you use a professional with experience in this type transaction and that you have your own representation - not just the sellers' broker, my opinion.
I hope it works out for you. I have completed a couple of these over the years with no problems.
Here are a couple of thoughts, since I don't see the question.... first, I'll put my mortgage broker hat on - your agreement should state how much is rent, and how much is option money each month and at the outset for your future lender to consider this as a part of your down payment.
Second, real estate broker hat on now - the agreement should specify the use of an escrow company / service to handle the monies each month. Otherwise, how do you know your sellers are paying the mortgage, taxes, etc.? Unfortunately, if you trust the seller to make the payments, that money may never reach the lender - one day you're on the street, option monies gone, seller now in bankruptcy...
Many other aspects to a proper lease option, make sure you use a professional with experience in this type transaction and that you have your own representation - not just the sellers' broker, my opinion.
I hope it works out for you. I have completed a couple of these over the years with no problems.
- wetdawgs
- Contributions:26853
A very very tricky situation. Any lender will consider you a renter, so you'd have to use normal channels (e.g. credit cards or ???).
I would be very cautious about putting major money in the house in repairs until you have actually switched the house to your name with your own mortgage. Make sure your contract covers who pays for the repairs if there is a reason you can't complete the contract.
I would be very cautious about putting major money in the house in repairs until you have actually switched the house to your name with your own mortgage. Make sure your contract covers who pays for the repairs if there is a reason you can't complete the contract.
We just entered into a lease-option with the owner
withdraw question
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