Home Buying in Boise>Question Details

Tracey Green, Home Buyer in Boise, ID

How can I find out if any of the homes I'm interested in could be a lease to purchase option?

Asked by Tracey Green, Boise, ID Mon Apr 6, 2009

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If the properties are listed for sale, it's probably not the first option for the sellers for many reasons. If you are working with a Realtor, be sure they are aware that is the direction you would like to pursue. If you are not working with a Realtor, call the listing agent and inquire if the seller would consider it and under what conditions. Some indicators that it might be a consideration would be if the property is for sale by an individual owner and vacant. Be prepared to answer why you want to lease to purchase...many times a rent/lease payment would be the same or HIGHER than a mortgage payment with the low interest rates out there today. If you have credit issues, meet with a local lender that is willing to assist you become a buyer. A good lender should be able to tell you what you need to do to put yourself in the position you can acquire a mortgage loan. Remember, there would need to be some incentive for the seller to consider going in to a lease option if their main intent is to sell the property.
1 vote Thank Flag Link Tue Apr 7, 2009
Your Realtor should be able to do a specific search for homes on the market that are open to lease options or owner carry. I would caution you to be mindful however. Many times on the lease options most will require substantial deposits that are contingent upon you re-financing by a specific time, and if your not able to you could loose your deposit.

Just make sure your agent discloses and discusses all these possibilities with you.

Best of luck!

Norma E Garcia
Realtor
0 votes Thank Flag Link Tue Apr 7, 2009
I am in agreement with Linda, looking for vacant homes that are not in short sale or bank owned, is a good start. Many MLS search engines have a criteria for Lease to Purchase, so you can ask an agent to do a property search for you to review.

When you do a lease purchase a bank will want to see a monthly rent payment that is very close to what your mortgage payment will be. So if you are buying a 200k home and your mortgage PITI would be around $1700 then you will need to make a rent payment similar. So first negotiate what a fair rent will be (say $1000) and what percentage of that monthly rent will count towards the down payment. Secondly, put any additional monies in rent ( $700.00) above that, in a long term escrow account with the closing Title Company. There may be many variances and the seller may want a portion of that additional monies if you don't follow through or perform your end of the agreement. Everything is negotiable so do your homework and put everything in writing IN DETAIL.

Paul Heim
Silvercreek Realty Boise Idaho
0 votes Thank Flag Link Tue Apr 7, 2009
Tracey,

As previously mentioned, this is an issue a skilled real estate professional will be able to assist you with.
Difficult times sometimes require different measures and many of today's potential buyers are considering this route.

For an owner to seriously consider a purchase option it normally requires a sizable deposite to get the owner's attention.

Good luck
0 votes Thank Flag Link Tue Apr 7, 2009
Great answer, Linda. I would only add that, in this market, more sellers are willing to look at the lease purchase option. A good agent should be able to assist you with this negotiation and transaction. A great agent will also suggest that you add a lawyer to your team.
Web Reference: http://www.suedahlgren.com/
0 votes Thank Flag Link Tue Apr 7, 2009
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