Chuck,

Right now, if you are paying rent and, at the same time saving money for a down payment, you may be closer to being able to afford where you want to live than you think. Could I suggest that you talk to a lender who will be able to give you a better idea of your options. Once you know how much you can comfortably afford for a mortgage payment, that should give you a better idea as to the answer to your last question which, I'm betting, is 'No.'

If you want information on reputable lenders past clients of mine and my brokerage have dealt with, I'd be happy to provide that information by phone or by email.

Tue Apr 22 2008, 13:38

I agree totally with Gary. A lease-option is a great solution for you. It allows you to lock in a price, pay pretty much the same as the property would rent for, accumulate option credits from a portion of your lease, then purchase...generally in 1-3 years.

And there are lots of ways to find lease-option properties and, more important, owners willing to lease-option. Some are already listed that way on the MRIS. But there are lots of others. (I did a long posting on that a while back; I don't have a copy or I'd just paste that here. But, in brief):

Look for properties that are listed both for rent and for sale. Those also are prime candidates for lease-options.

Look for properties that were for sale, were withdrawn or the listings expired, and now are for rent.

Look for properties that were for rent, were withdrawn or the listings expired, and now are for sale.

Put a posting on Craigslist. Be specific--i.e., "Looking for a lease-option/rent-to-own property in Del Ray. 3 bed/2 bath, rent up to $xxxx." And so on.

Call up "For Rent" listings in the newspapers and ask if they'd be interested in leasing their property, with a sale in 3-5 years. Many people who are trying to rent their homes would prefer to sell, but think they can't in this market.

Those are just a few suggestions. For some, you'll need a Realtor. Others, such as Craigslist, you can do on your own. A Realtor can add a lot of value to the process (and since I'm a Realtor, I'm not exactly unbiased). But, frankly, a lot of good lease option deals never cross a Realtor's desk. They're done directly, or with an investor (and I'm an investor, too), as an intermediary, often in what's called a "sandwich lease-option."

Hope that helps.

Fri Feb 15 2008, 13:17

As I tell my First Time Home Buyers. Your 1st home is seldom your "Dream Home". Home buying is a process. Buying a small, affordable place; and building equtiy slowly is generally better (for most people) than renting.

In a few years; sell your place; cash out any equity and buy a bigger place.

As far as keeping up the pace with home price increases; no one knows for sure if and when we will hit bottom in pricing. The Metro DC area (close to the city) has seen only mild home price decreases. While I would not expect to see prices jump in the next year - you need to also consider the tax benefits of buying.

Good luck.

Fri Feb 15 2008, 12:17

That is an easy one.....Find a seller that is willing to do a LEASE OPTION. Then negotiate a price that is fair and agreeable to both buyer and seller. Rent from him for a few years and you have locked in a price right now. Hire a good REALTOR to assist you in the search and negotiations and a good Attorney to go over the contract with you, and write the Option Portion so that it protects you.

Gary De Pury
Broker-Owner
Bay Vista Realty & Investments, Inc.
Chairman, Communications Committee
Director, Florida Association of Realtors

You are in a position to experience the best of both worlds!!!!!!!!!

Fri Feb 15 2008, 11:44