I do not suggest doing lease purchases/rent to own. There are simply way too many things that can go wrong with one from either side.
In order to do true owner financing, the owner must own the property free and clear of any mortgages. Very few sellers are going to be in that position.
If the property currently has a mortgage on it, the owner cannot legally transfer the title to a buyer without the mortgage first being paid in full. Most all mortgage loans have a due on sale clause. This due on sale clause requires that the mortgage be paid in full should a title transfer occur.
The buyer is also at great risk on a lease purchase transaction should the seller quit making their mortgage payments. Right now, many sellers cannot afford to make their mortgage payments or simply chose not to continue making them. I have seen where the buyer is making their rent payment, but then the owner is not paying the mortgage. The next thing the buyer knows is that the home is in foreclosure. That means the buyer will generally not get back any of the money they have given as earnest money or security deposits.
It is also a big risk on the buyer. If your credit is not where it needs to be now, there is no possible way of you knowing it will be acceptable in a set amount of time.
Before entering into any type of agreement like that, the buyer needs to make sure that they fully understand the potential pitfalls that could arise. Should the seller default on the mortgage, the buyer could lose ALL of the money that they have invested. Until you are able to purchase, renting is generally the safer option.
Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options to see if purchasing might be a possibility for you. To get Pre-Qualified for your purchase, you can submit your request online at www.rodneymason.com to get started.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.
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What is your income and down payment available? These factors can really help your ability to obtain a loan. Your credit score is still low though. I recommend trying to get it to at least 580. I have been able to give out loans with credit scores as low as 580 so if you raise your score up 30 points you'll have a better chance. Also, you need to make sure your other financial factors are in line like income, down payments, assets, expenses, etc. I recommend speaking with a loan officer to help you get the loan that you need. Good Luck! Brian Nguyen Sr. Mortgage Banker NMLS # 659743 Phone: 949.667.2887 email@example.com... more
Executive home available for sale in small exclusive gated community, bordering Augusta.4 bedrooms, 3.5 baths, large eat-in kitchen,stainless steel appliances, walk-in pantry, mother-in-law suite, office,
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Firstâ€time homebuyers who purchase a principle residence on April 9, 2008 and before July 1, 2009 are
eligible. If you (and your spouse, if married) have not owned your principle residence for a 3â€year period
before your purchase, and you have never taken advantage of the DC firstâ€time homebuyer credit, you
qualify as a firstâ€time homebuyer. However there are some other conditions that you should be aware of:
â€¢The full credit is available for single individuals whose adjusted gross income is less than $75,000.
â€¢ Purchases by nonâ€resident aliens and purchases financed by proceeds from a qualified mortgage
issue are not eligible.
â€¢ Any single family residence located in the United States that will be used as a principal residence
is eligible. This includes singleâ€family detached housing, condos or coops, townhouses, etc
â€¢ Home purchases between relatives and other gifts of residences are not eligible for the credit.
â€¢ For more specific questions about the tax implications of the credit, please consult a tax professional!
Tye Caldwell Sr.
Keller Williams Realty