Home Buying in 85310>Question Details

CM, Home Buyer in Phoenix, AZ

best way to finance or do lease with option to buy with bad credit history

Asked by CM, Phoenix, AZ Sat Feb 21, 2009

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Once again, another Real Estate Agent who "recommends" not getting into a Lease-to-Own deal.

One of the reasons people get into Lease-to-Own's IS BECAUSE THEY NEED TIME TO WORK ON THEIR CREDIT. That's the whole point! Meet with your lender to see how long it would take for you to work on your credit and DO JUST THAT......WORK ON IT. If your lender/credit repair specialist says that it will probably take 24 months for your credit to be at a point to qualify for traditional financing....then you wouldn't sign a lease for only 18 months. If you truly want to live in a house, you will do what is necessary to work on your credit. Otherwise, you should be renting.

Do your homework and make sure to use Professionals that are VERY familiar with Lease Options. Many Real Estate Agents do not truly understand or are willing to deal with them because its outside the traditional "go to a lender....get pre-approved with 20% down....etc, etc.) that they know. The Lease-to-Own deal should be a win~win for all those involved. If it isn't....then don't sign the papers.

The sellers are giving you the Option to purchase their house at a later date. They are taking their house off the market for YOU and, for that privledge, there is a cost associated with it.

For 23 years, respected Real Estate Columnist/Investor/Attorney/Broker/Speaker Bob Bruss used to provide great information for the public about many topics associated with buying and selling real estate. Considered the "Dear Abby of Real Estate", he wrote columns and newsletters which gave a great description of Lease Options as well as other topics. You may want to Google his name and take a read.

Hope this helps.
Web Reference: http://www.hhiinvesting.com
1 vote Thank Flag Link Sat Feb 21, 2009
CM,

Lease to own is an option to find a home and establish a purchase value to purchase the home at the end of the lease. You could set a price to close at and if you choose another home at the end of it you may walk away. Most owners reccomend a minimum down of 3000.

In most cases home owners would like the property to close in a year, so it should give you enough time to clean up all your credit if you have some guidance from a credit counciler.

I have town house North Phoenix in 85022 zip code that might work for you!

Lucinda Tkach
Windermere Central
0 votes Thank Flag Link Sat Feb 21, 2009
I would not recommend a lease option, because if your credit does not get cleaned up by the time that you lease option ends you often loose your deposit which could be $5,000 to $10,000.

Have you talked to a lender to see how bad your credit is? A lender can often give you advice on how to clean up your credit in a timely manner. There are some loan programs that are not credit score driven.

I would contact a lender to see exactly where you stand. If you need a good referral for a lender then contact me via my website below.
Web Reference: http://www.TheKeysTeam.com
0 votes Thank Flag Link Sat Feb 21, 2009
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