Leasing with an option to own is an excellent option for a home that you own outright. However, there are a few things to consider when going this route.
1) Although most prospective buyers/lease-to-owners will either have little to put down or poor credit, check their background thoroughly and their credit history and employment history as well as personal references. You're going to be entrusting this person with your rehabbed property, so you definitely will want to spend the little money to check them out so that they don't destroy your home.
2) Leasing to Own will allow you to move as you need to and allow someone else to purchase your home. There are many legalities and they are different in each state so I would contact an attorney to draft your agreement.
3) You need to determine how they will pay for the property and what they will and will not be responsible for paying. Will they be responsible for taxes and insurance and will they take ownership only after all of the amortized payments have been made or will they have ownership before that, as in a traditional mortgage arrangement?
4.) If you're going to lease to own, you may still consider simply leasing the home normally for a year to whomever is purchasing it as a lease-to-own so that you can find out their payment patterns and make sure they pay on time and are responsible with the property before locking yourself into an agreement.
I hope this helps!
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I do not see any fantastic advantage for you in taking that strategy Diane, unless the banks are doing something to encourage that activity. Get your credit cards paid, get your ratios in line with what the banks want. Save up or get your hands on some down payment money and go after a home you like the way you can get the best price-Qualified to get the mortgage! Speak to a top mortgage professional, HE WILL TELL YOU WHAT YOU NEED TO DO. Make sure he is right and do what he says. You should get a great home at a great price. Do not be afraid to use family, friends, business associates or anyone who can help you. Know this, there are few short cuts do what needs to be done the right way and you will benefit!!
Good luck and any other questions you can email me at email@example.com I have been doing this for 39 years and this is one thing that has not changed. Good Luck!!... more