Home Buying in Piscataway>Question Details

divorcee, Renter in Piscataway, NJ

Hi does anyone knows of a homeowner who is willing to do a lease option for five months and then purchase after

Asked by divorcee, Piscataway, NJ Thu Sep 26, 2013

Help the community by answering this question:


Lots of great and solid advice here. Those of us who have been in the RE industry for years, and especially those who have financial backgrounds know all too well that these deals are structured to benefit the current homeowners in most cases. I'm often compelled to respond to these type questions and ask again why? What is your motivation and why is this appealing to you?

If you have a low credit score or bad credit, please look at addressing this head-on. Avoiding a "core" issue and seeking a short cut to homeownership is not wise short or long term. Be confident, change your housing future by making better financial choices. I'm sure there are a lot of "willing" folks that will be happy to take your hard earned dollars to fatten their own pockets.

We want you to fatten your own pockets. Thanks for the post and good luck to you!
0 votes Thank Flag Link Fri Sep 27, 2013
You probably do not want to hear experienced professionals say you have a bad plan but none of us want to see you throw away your hard earned money. You have no idea how a mortgage underwriter is going to look at the lease option agreement when it comes time to pay off the seller. There are specific rules they must follow and if you are not aware of them how will you structure an agreement that will pass the test?

That is problem number one, in addition to that it sounds like a loan officer has established a minimum timeline for you based on a specific issue or past event. I would double or triple the minimum to be safer; backing into a tight corner is not a good move.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Fri Sep 27, 2013
Short answer.

Rent-to-own does not really exist. And, if it does there are no bargains.

You are not going to rent to own on something at today’s prices. If does happen you will pay a premium on the sale ( meaning a high price ) and a monthly payment towards the sale deposit amount over the rental amount. You rent is usually NOT saved towards the purchase price.

Save your money then buy a house.
0 votes Thank Flag Link Fri Sep 27, 2013

You may just want to consider staying put until you are ready to buy in five months. In all honesty, and in my experience, lease options, also known as rent to own agreements, have terms more favorable to the Seller/Landlord, and can make things messy and complicated, especially if you are not working with an experienced real estate professional.

I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.

Wishing you all the best,

De Vonte Williamson , LSA
Proudly Serving Long Island
Coldwell Banker Residential
Top Relocation Associate
"I Stand Behind Getting You Results!"
0 votes Thank Flag Link Fri Sep 27, 2013
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