Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!
The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.
There is no FORM printed by anyone; there are just too many variables.
The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?
This is the Ultimate Caveat Emptor!
Good luck and May God bless... more
Most homes in that price range are purchased straight out for cash because most mortgage companies do not do loans in that price range and it becomes even harder if the home needs repairs (furnace, copper missing, etc.). However, if you have a good relationship with your bank or credit union, sometimes they will do loans in that price range.
Your best bet is to find a private owner that will do a land contract. I would put aside at least $5,000 to put down. This shows seller that you are serious and makes the risk a little better for him. Also, if there are real estate agents involved, on a home of this price the seller is paying $2-$3000 in commissions, so the $5k gives him enough money to pay the commission and put a little in his pocket.
As to area, I like to try to find the best home for the money I have in the best school district. I say this because if in a year or 2 you need to sell, your home in a better school district will sell faster then identical home in poor school district. Also try to get 3 bed with basement even if you do not need the 3 bed or basement. Again, if you have to sell, it will usually sell before a 2 bedroom or a home without basement.
Hope this helps.
Douglas Funk, Burrell Real Estate, Flint MI... more
Good morning Dale!
I have quite a bit of family all over Florida as well as reliable agent connections through Keller Williams. Send me your info in regards to area and contact.
You will already have a signed purchase agreement before it is sent to the bank for approval. The banks have tightened up their processes to the point that if the buyer backs out after bank approval we can not replace the purchasers we need to start the process again. I would check with your Realtor about this situation.... more