rah, Both Buyer and Seller in Dallas, TX

Thanks for the answer to my duplex situation. Instead of an executed lease contract, would doing a lease with option to buy contract do just as well?

Asked by rah, Dallas, TX Thu Aug 19, 2010

My son and daughter-in-law are the ones we will be sharing the duplex with.

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4
T.E. & Naima…, Agent, Dallas, TX
Mon Aug 23, 2010
The option to purchase while renting is restricted in Texas. The recent law says that the seller is burdened with annual reporting to you and faces significant risk for non-compliance. Leases with the option to purchase must now be written by an attorney and a Realtor is simply not allowed to write up such a lease contract.

For this reason sellers are not offering leases like that, but there are some exceptions.

If you could find a duplex, you might entertain other financing options, rather than a conventional loan or one with FHA/VA guarantee.
Web Reference:  http://www.Sumner-Realty.com
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Aug 19, 2010
I believe you could be confused off the entire process. WOULD not recommend to do a lease or lease option purchase unless you have a Realtor who represents you.

Lease Purchase requires more of a downpayment than a typical lease. Many instances these types of transaction become confusing during term of lease purchase.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Don Groff, Agent, Austin, TX
Thu Aug 19, 2010
So they would be leasing with an option to buy? I do not see how that would help you getting qualified. It would just complicate matters in my opinion. You would be better off just having them lease but the fact that he is your son will also make it more difficult for them to count the rental income to offset your debt ratio.

Why don't you give me a call sometime and we can discuss the specifics. Sometimes I can get approvals with higher than average debt ratios if you are a strong borrower. Fixed rates right now with me are at 4.125% for 30 years.

Don Groff
512.633.4157
0 votes
Dp2, , Virginia
Thu Aug 19, 2010
OK, I suspected that might be the case, and that definitely wouldn't be an arm's length transaction. The lender most likely would ignore both, and focus on the fact that your son is involved. So he'd have to co-sign, or else you'd have to qualify with only your income.
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