Home Buying in Orlando>Question Details

Beryl Duples…, Home Buyer in Orlando, FL

Looking for a 4 bedroom 2bath lease with an option to buy. I would prefer the Orlando area. Also I was wondering if a bank would consider this option

Asked by Beryl Duplessie, Orlando, FL Sat Nov 2, 2013

Help the community by answering this question:


You need the right agent with a great team that works with flexible banks, not those conservative ones on every street corner. I have helped many people that have needed a few tweaks in their credit profile get to the point where they can purchase a home that is theirs.
1 vote Thank Flag Link Sat Nov 2, 2013
Rent to own isn’t buying a home, it is leasing, and at a much higher cost in almost every case. Usually it is about a landlord that is cashing in on the optimism of someone that is having a tough time. I spoke to a closing attorney this morning on this very subject. He said he has written up hundreds of these puppies over the years and estimates that less than 3% ever worked out for the buyer. That means 97% of the “buyers” lost money. Of the people I have known that tried this I think the failure rate is closer to 99.99%. One month I keep a running total of how much people told me they lost doing this and it was over $250,000. That was just in 20 working days! AND only one loan officer chatting with people inquiring about getting approved for a loan.

I have never spoken to anyone that is trying to do one of these that understood what will happen when it comes time to pay off the seller. The mortgage underwriter is going to follow the mortgage guidelines - NOT the contract between the tenant and the landlord. Why would anyone throw away their hard earned money without investigating what happens when it comes time to pay off the seller? No idea, but I promise, someone will read this, think I don’t know what I am talking about and toss away their money just because they think it will work out somehow.

It is good to be optimistic but also important to be realistic. Whatever you think the timeline is to fix the problem(s) that is keeping you from getting approved for a mortgage, triple it and that will be more realistic.

Last but not least, anything you do to try and "work around" the system that is in place to protect you is probably not a good move. Good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
1 vote Thank Flag Link Sat Nov 2, 2013
Banks don't get involved with lease with option to buy. The title to the property doesn't actually change hands so there is no collateral for the bank.
1 vote Thank Flag Link Sat Nov 2, 2013
Hi Beryl

Lease Options are very hard to find in this market

I am a Mortgage Loan Specialist

If you are interested in buying eventually, perhaps it may be wiser to just buy now, if possible . Pls contact me and I will review your info

As for the Lenders, it is not a problem ( Lease Option) , once you eventually get a purchase contract, we will go by that

1 vote Thank Flag Link Sat Nov 2, 2013
What a great answer from Jim!
Hopefully that helps a lot of Buyers to avoid losing their hard-earned money.
Web Reference: http://www.MouseMansion.com
0 votes Thank Flag Link Sat Nov 2, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer