Home Buying in Santa Clarita>Question Details

kellypbanks, Home Buyer in Los Angeles, CA

Looking to do a Lease To Own!! This way I can better my credit score! Anyone know of any available or who to contact for HELP!?

Asked by kellypbanks, Los Angeles, CA Thu Apr 18, 2013

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13
Lease to own is very hard to come by especially when prices are on the rise.
1 vote Thank Flag Link Fri Jun 14, 2013
Great article here on lease to own benefits and pitfalls.
http://thelendersnetwork.com/lease-to-own-home-purchase/

Good luck!
1 vote Thank Flag Link Sun May 5, 2013
I have an amazing credit repair expert!! He has helped a few of my clients come out of the 500's and into the high 600-700 range in less than 3- 6 months!! They do credit repair in all 50 states!!! His name is Curtis Luckett III and his number is 614-657-1659
0 votes Thank Flag Link Thu Jun 13, 2013
I doubt if lease to own will help your credit, most mom and pop landlords do not report to a credit bureau because it cost money to do so. All of the people that have talked to me after trying a lease to own say all that happened is they over paid on rent, and lost their deposit. Sounds like an epidemic in my area.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Thu Jun 13, 2013
Good morning kellypbanks,

Rent To Own is a better deal for the Seller than it would ever be for a potential Buyer.

The basic concept is finding a way to "force" savings towards a down payment by including a portion of the monthly rental that goes towards that savings. You pay your rent every month and your Landlord deducts a pre-determined amount to hold in a special bank account, called an "escrow" account. Your Landlord holds that money until you have saved up enough---through this "forced-savings" method---to meet a down payment to purchase the home.

The terms of the purchase price, including the down payment amount, and the amount to be set aside from the rental for down payment, are all set down at the time of lease signing.

It's all about helping the renter/tenant save up enough money for a down payment to buy a home (in this case, the one you're renting). But this is a better deal for the Seller because he gets to lock in a purchase price and a buyer today for a future sale.

Saving money for a down payment? Well, heck, you can do that on your own.

If you are dedicated to the idea of buying your own home, you can create your own savings plan to save up enough money for a down payment. And when you have saved up enough for a down payment, if that takes a year or two or more, YOU get to decide on the price you're willing to pay for the house at that time based on current market conditions. You won't be locked in to a price that may be a lot higher than what the house is worth in the future.

With Rent To Own you'll be locked in both to the house and to the price, even if it takes you 3 years to save enough through the forced savings of the rent payments. What happens if three years from now your life situation has changed? Maybe you need a bigger/smaller home. Maybe your employment has relocated. Maybe your credit or income is insufficient to qualify for a mortgage loan.

Find a way to save up on your own; not with Rent To Own.

Sit down with a local Mortgage Banker and get yourself prequalified, too. You may find you're better qualified than you think you are, and, if you're not, at least you'll know how much loan your income and credit qualify you for, and how much you have to save towards down payment and closing costs.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Thu Jun 13, 2013
I know of a lease to own property in the Valencia area, if you are interested contact me at (661)964-7321 or via email at AlexM@Troop.com, I look forward to hearing from you soon!
0 votes Thank Flag Link Thu Jun 13, 2013
Kelly,

Lease to own or Lease Option sounds good in theory but is rare in reality. This practice would allow a potential buyer to rent a home with a fixed price that they will pay for the home in the future. This is something that most Realtors would steer away from due to the potential liability. Let's say you rent with an option to buy for two years. For this scenario, let's say the home is worth $400,000 and you agree it is agreed to have an option in two years at $450,000. Two years from now you would have the choice to buy the home at $450,000 or walk away. Should the home be worth $600,000 you made a great deal and the home owners did not. If the home goes down in value you simply walk away. Either way the home owner gets the short end of the stick. Personally, I would never gamble with someone else's money and this is a gamble.

Tony Lewis RE/MAX of Valencia
Web Reference: http://www.TonyLewis.com
0 votes Thank Flag Link Wed Jun 12, 2013
I agree that the lease option to buy is probably not your best option, nor will it be easy to find one. I have seen properties that are both listed for sale and for lease because the owners are not sure which way they want to go. I suggest if you can find a property like that, secure the lease and build a relationship with the owner, you may be able to purchase the home in the future.
0 votes Thank Flag Link Tue Apr 30, 2013
I recommend going to Amazon and finding a book or two on lease options and looking though them. You can also Google John Schwab and John T. Reed, they have good books on the subject. A couple of goals:

-negotiate the lowest option price you can
-negotiate the longest lease you can
-negotiate the smallest deposit you can
-negotiate a portion of your lease payment to go towards the principle
-make sure you record your option at the county recorders office
0 votes Thank Flag Link Mon Apr 29, 2013
What is so bad with your credit that you feel you cannot qualify to purchase a home? Call me and we can discuss it. I can give you options on how to better your credit so that you can qualify.

Respectfully,
Eddie W. de Leon
Senior Loan Officer
949-424-3097
NMLS #238369
0 votes Thank Flag Link Mon Apr 29, 2013
Hi Kelly,

This home is already in Pending status (an offer has been accepted, so it's in escrow). However, if you're still considering a lease option, in addition to what my colleagues advised you, I would like to add that you have to be very careful with lease options because if you do proceed, you'll be paying monthly money toward your down payment, and if for some reason you won't be able to execute the purchase, you may lose that money.

Have a great afternoon and feel free to search for other available homes on my website, http://www.LilWest.com.

Glad to be of service!

Liliana
0 votes Thank Flag Link Mon Apr 29, 2013
I agree with my colleague This is not a time of many lease to own opportunities. Sellers can sell in an hour these days...

These options normally emerge during buyer's markets when sellers can't unload properties.
0 votes Thank Flag Link Thu Apr 18, 2013
Kelly, you and many others are hoping for this same Lease Option solution. Unfortunately it just won't happen. You see, a home owner that leases their home with a lease option will set a sales price. The sales price today with a future price would lock the home owner into a price that could be $50,000 or $100,000 higher than the price you set today. Anyone that wrote this offer could find themselves in legal hot water. This would be foolish for a home owner to do.

Tony Lewis
RE/MAX of Valencia
Web Reference: http://www.TonyLewis.com
0 votes Thank Flag Link Thu Apr 18, 2013
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