you have to be very careful about lease-to-own homes. Since these are not standard transactions, the seller usually draws up the contract and other documents... which means they are usually VERY heavily in favor of the seller. If you truely want a lease to own home, you need to speak with a real estate attorney and have them review any and all contracts and paperwork before you sign anything.
That being said, there are a number of down payment assistance programs out there. The city of Arlington has one, Fort Worth has one, Dallas has one, and then there are state-wide programs available. I would be happy to discuss these with you at your convenience. Please feel free to give me a call or shoot me an email. You can also go to my website at http://BrianRayl.com/news and use the search box to search for "downpayment assistance" and find a ton of resources that I have on my site.
Let me know if I can be of any assistance.
It's more than real estate. It's RAYL-Estate!
If judgments are filed against the seller, the seller files bankruptcy, or the seller dies it may result in all of the buyerâ€™s rights being cut off with no legal recourse against the seller.
The buyer loses all payments made to the seller if: (1) the seller cancels the lease due to the buyerâ€™s failure to pay a monthly payment or maintain insurance on the property or (2) the buyer fails to exercise the option to purchase when the time comes.
Often when a buyer enters into a lease-purchase agreement with a seller, there is already an existing mortgage on the property. If so, the mortgage, through the due-on-sale clause, may actually prohibit the owner from entering into a lease-purchase agreement. If the owner knowingly or unknowingly ignores this clause and enters into a lease-purchase agreement, the ownerâ€™s lender may very well have the right to demand the entire amount of the loan. Unless the buyer or seller has the ability to immediately pay off the underlying loan, all of the buyerâ€™s interests will end through the operation of the due-on-sale clause.
An unscrupulous seller may borrow money against the house, creating an additional mortgage. The new buyer or lender in that case may cut off all of the original buyerâ€™s rights.
There are many risks involved with seller financing and the best way to protect yourself is to hire an attorney.
I would recommend to save up a down payment to buy a home where you actually have your name on the deed. Fixed 30 year mortgage rates are still under 4% right now, and that is going to be a better deal than trying to lease purchase.
There is also a legitimate lease/purchase going on right now with Community Development
Corporation that can help you. Call or email me at 972-679-9311, firstname.lastname@example.org
for more information.
Did ask your loan officer about grants? City of Arlington offers a grant up to $7,500. I have included the website below. Please feel free to contact me if you have any questions or need assistance.
Make it a Blessed Day!
Tamika A. Goree, Broker Associate
Halo Group Realty, LLC
If you are not ready to buy, just lease until you are. You can always make the owner an offer to buy the home, once you have your downpayment ready.