If you have no down payment, you are better off renting for now and not letting your wants get the better of your needs. If you have no down payment, then you also have no payments for the myriad of expenses involved with homeownership, many of them large and unexpected.
Part of the problem that led to the government nationalizing our economy was caused by bad individual decision making. For example, buying a home with no money down.
Do what is best for yourself: Save a down payment, demonstraing sufficient self-generated cash flow, and buy when the time is right, the FICO is right, and your ability to repay your own loan is right.
Buying a house with no down payment in this economy is irresponsible. Realtors and mortgage brokers that facilitate this are also part of the problem.
Member: Worldwide ERC
Member: New Jersey MLS, Garden State MLS, Hudson County MLS
Licensed Realtor NJ
Licensed Appraiser NJ & NY
Century 21 Joe Tekula Realtors
Agent of the Year 2008
Agent of the Year 2009
Owner: Sands Appraisal Service, Inc.
Phone (direct): (973) 584-4235
Search the Garden State MLS: http://www.marcpaolella.com/SearchMLS
Check out the differences between the two types of leases. Here's a good place to start:
Depending on your financial situation, the sellers motivation, and current market conditions, one might work better for you than the other.
Then, once you decide which way you want to proceed, there are options available to you when preparing your offer re: down payments, % of rent applied to purchase, etc. A good attorney can advise you.
Good luck! If you'd like a list of sellers in a certain price range who would consider a lease/purchase or lease/option, email me and I'll send you out some listings to review. There aren't many available as most sellers want and or need the money they get by an outright sale to move on to a new place, too.
Keller Williams Realty - Atlantic Shore
My initial thoughts were to recommend you look into a 3% down FHA loan as I live in Brick and do business in Brick, so I know that you can find a condo/townhome and possibly a home b/t $150 (townhome) to $300k.
However, Marc makes some excellent points, especially regarding the add'l unexpected expenses of homeownership. You'll need a cash reserve to keep up with these types of items.
Love and Peace,
Francesca, Realtor, ePro SRES
There is a big difference between a "lease/option" agreement and a "lease/purchase" agreement. Both can accomplish the same result but each comes with advantages and disadvantages. Let's meet and talk about your needs.
Thomas J. Smith, Broker Associate
Remax At Barnegat Bay - Manahawkin
31 N. Main St. Manahawkin, NJ 08050
Direct Line: 609-978-3623 Fax: 609-978-8625 Text: 609-709-1429
Email: Tom@SellerTom.com Web site: http://www.SellerTom.com
I'm not familiar with the NJ real estate laws. However, in Florida, when one rents/leases a home with option to purchase, it does not belong to he or she until the closing of the contract. Since most agents/Realtors are not attorneys, I would suggest that once you work with the agent/Realtor in finding a home you would like to rent/lease with option to purchase that you contact a real estate lawyer and have he or she do the paperwork for you. Your agent/Realtor will, most likely, know of one.
Keller Williams Tampa Properties