Home Buying in Burbank>Question Details

Deborah Marsh, Home Buyer in West Newton, PA

I want a lease-to-own, I have been renting most of my life, but at this point my credit is not the best.

Asked by Deborah Marsh, West Newton, PA Thu Jun 28, 2012

I have been renting for a good part of my life. Now I am more interested in lease-to-own. I want to settle down in my own home. I was renting a home for 4 years and 10 months and before that rented a backhouse, a townhome and several apartments. I want someone to let me rent-to-own there home based on my merit of a good renting past more then my credit. Can someone help me?

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Hello Deborah,

Many of these answers have already reflected the best advice someone can give you. The Burbank area is indeed a high demand area and thus owners have little incentive to agree to a lease option. I would suggest speaking with a lender to understand your options. A good lender will provide you with a path towards purchasing a home by making recommendations based upon your current income and credit.

I have several lender referrals that I have worked with in the past that are quite familiar with working with individuals in unique financial situations.

Please do not hesitate to contact me if you have any questions or would like some assistance in the matter.


Best regards,

Tammy Hunt
Nelson Shelton & Associates
355 N. Canon Dr.
Beverly Hills, CA 90210
310-990-9005
http://www.TammyHunt.com
Lic# 01275416
0 votes Thank Flag Link Thu Jun 28, 2012
A lease to own (also called lease option) is a situation where you find a property that the owner would let you "lease first" and have an "option" to purchase the property within a certain time frame. The most typical is a 2 year lease option.

Let's say the property is a house that is leasing for $2,000/month and the owner would like to sell it for $300,000 and he/she will consider a lease option. Normally the Tenant "Optionee" would put up an amount for the option ... let's say $2,000 (up front). That $2,000 gives the Tenant "Optionee" the ability to exercise the option to buy the property at any time in the option period (normally 2 years) and convert that to a purchase.

If the Tenant "Optionee" purchase the property, the option money is applied toward the purchase.

If the Tenant "Optionee" does not exercise the option to purchase the property within the option period, the option money is lost.

Some also negotiate a portion of the lease money to go toward the purchase. In a $2,000/month lease ... maybe $300 of that would go toward the purchase if the purchase is made.

The downside is that not many properties are available for lease option. And they can have their complications. For example, if you don't lock in the price on the front end and the market goes up, the Landlord / Seller may want the price to reflect the market value at the time of the actual purchase.

I hope that give you a little overview. If you have further question, please feel free to call or text me at 818-846-4700.
0 votes Thank Flag Link Thu Jun 28, 2012
Hi Deborah,
Lease to own in Burbank is very rare if null. Burbank is in high demand and sellers prefer to sell outright vs a lease to own. With increase in rents, lower home prices and historically low interests, you may want to consider buying a starter condo maybe with FHA financing. FICO scores are less of an issue with FHA and may afford you the opportunity to own your own home. You may want to talk with a mortgage lender and see if you qualify. I hope this helps and if I can be of further help please let me know.
Have a great day!

Norma
The Achievers Group
Remax Town Center
http://www.TheAchieversGrp.com
0 votes Thank Flag Link Thu Jun 28, 2012
It's a very tight market right now, very little inventory, so sellers have leverage. My recommendation would be to speak with a lender and find out what you need to do to qualify for financing.
I recommend Artin Babayan, Prime Lending 1-800-963-4623.
0 votes Thank Flag Link Thu Jun 28, 2012
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Do you really understand how a rent to own works? You will have to get a loan to buy the house and if you can't you will lose more money. Save your money, fix your credit and then buy when you really can. Rent to buys are very limited in selection if you can even find one at all. With homes decreasing in value they are really tricky and there are many pitfalls that can cost you money. After a year you must be able to get a loan to buy the house.
0 votes Thank Flag Link Thu Jun 28, 2012
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