Rentals in Clovis>Question Details

Joanne Thomp…, Home Buyer in Fresno, CA

do i need a down payment if i get lease to own homes?

Asked by Joanne Thompson, Fresno, CA Wed Jan 23, 2013

0 votes Share Flag Rentals in Clovis

Help the community by answering this question:

Answers

6
Hi Joanne

Yes do need a Down Payment for lease to own, as should you not buy at a later period
per the lease, you then loose the down payment.

Have a Lawyer or Realtor help you draft up one, and do not sign one blindly.

Good luck.

Ruth

http://www.trulia.com/blog/perry_mistry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Wed Jan 23, 2013
Lease options are normally drawn up by an attorney that represents the seller. You can be assured that they will recommend that the seller protect their investment by requiring a sizable deposit in conjunction with the agreement.
0 votes Thank Flag Link Wed Jan 23, 2013
Yes, Joanne, and most likely it will be non-refundable if you do not purchase the house - for whatever reason.

If you don't have a down payment, you will be asked to pay rent over and above the usual rent (only that overage, not the full rent you pay, would be applied to the purchase price) but - you will forfeit that, also, if you don't buy the house, so make sure you really understand what this kind of arrangement means.

Best wishes.......
0 votes Thank Flag Link Wed Jan 23, 2013
It will depend upon who the owner of the property is, but I would certainly assume so in most cases. Do you really want to get an option to purchase if you don';t even have a downpayment?
0 votes Thank Flag Link Wed Jan 23, 2013
Hi Joanne,

Your answer would depend on the contract that you sign.
Some lease-to-own contracts, put part of the monthly payment toward a future down payment; others require a small down payment in the back end, just when you sign the final purchase contract.

Talk with a knowledgeable agent in your area. Interview several and pick the one that you feel most comfortable working with.

Douglas Lagos
Realtor, Certified HAFA Specialist
Coldwell Banker
Web Reference: http://www.douglaslagos.com
0 votes Thank Flag Link Wed Jan 23, 2013
Hello Joanne, Yes, usually there is a fairly large lease option money deposit of 10k. Do you have a BK or foreclosure in the last 2-3 years? If not, you may qualify to buy with a minimum 580 fico score for half percent downpayment assistance programs which can also contribute towards your closing costs as well. You can buy with minimum out of pocket expenses. It only takes a few dozen questions to qualify you in minutes for the many programs available.

I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify. I can raise fico scores within 3-4 days in most cases although if you do have a BK or forclosure you have those timeframes to wait out to qualify. A BK requires 2 years from the discharge date to qualify and forclosure/short sale is 3 years unless you have 20% down then 2 years. Here are some links to study and consider.

http://www.under640ficoscoreloans.com/Pages/Conventional.aspx
http://www.under640ficoscoreloans.com/Pages/CHDAPLoans.aspx
http://www.under640ficoscoreloans.com/Pages/HalfPercentDown.aspx
http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
DRE# 01140252
NMLS# 297251
760-486-4225
9am till 9pm 7 days
http://youtu.be/MrygA2_8fAY
0 votes Thank Flag Link Wed Jan 23, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer