Home Buying in Twinsburg>Question Details

Malzers, Home Buyer in Twinsburg, OH

What are some options for our situation? We cannot get approved for a bank loan due to the fact that my husband and I both work part time and my

Asked by Malzers, Twinsburg, OH Thu Feb 18, 2010

husband also runs a small business (in which our tax person showed we made little on). We have $145,000 to put down on a house. We were looking at house in the 230-250K range. Would it be smart to purchase a house that is lease to own? how does that normally work?

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Hi Malzers,
Unfortunately, the rules have all changed over the last year or so and even though you have an excellent downpayment for the price range you want, you simply are in a grey area for many lenders. It's not hopeless, however, if you have good credit and you have some documentation. Suggest that you chat with a local lender who does not automatically sell the mortgage into the secondary industry. First Place Bank in Solon (Darrin Kresevic, VP) would be a good choice to start.

In our area, there simply aren't a lot of lease to own properties and I caution buyers about some of the pitfalls of lease to own. I'd be happy to talk further with you. Please feel free to contact me directly either by email (Diane@REDTeamHomes.com) or cell:216 408 0886.

Diane Norris, e-PRO,GRI, SRES, REALTOR
The RED Team at Keller Williams
Greater Cleveland Southeast
http://www.REDTeamHomes.com
Web Reference: http://www.REDTeamHomes.com
0 votes Thank Flag Link Thu Feb 25, 2010
If you're ever intrested in attending a free home buying or financial seminar please let me know. We may be able to get some of your questions answered a little more clearly. Feel free to either email or call me direct on my cell (330)687-1200 anytime!
I'm in theTwinsburg area...and my market is but not limited to Twinsburg, Macedonia, Aurora, Streetsboro.

Have a wonderful weekend!

Kristine Bissler
Keller Williams GCSW - KB Realty Group
Web Reference: http://kristinebissler.com
0 votes Thank Flag Link Fri Feb 19, 2010
Hello again Mrs. Malzer, I had chatted briefly with one of my most trusted mortgage loan originators, she is a Senior Loan Underwriter for a local lender in the Belden Village area here near Canton and North Canton. She would certainly be interested in speaking with you a little more about your situation if you would be willing to do that? The lending company she works for is also a "portfolio" lender, which means they underwrite their own loans, and do not have to get an okay from someone in a far off state for a yes or no as to whether they can or will lend. If you would like me to hook you up with her (no obligation on your part), please let me know?

To address your original question a little more about whether it would be smart for you to purchase a property under any scenario... I know this may sound like an attempt to skirt the question, but as Realtors we are not allowed to give any legal advice because that falls under the auspices of an attorney, nor are we allowed to give any kind of financial advice, as that falls under the auspices of a financial advisor / tax planner. Since you are mentioning you have $145,000 to put down on a property in the range of 230 to 250 K, you should probably seek the advice of a professional financial advisor. In reality, it would be good for form a trusted team with a financial advisor, a mortgage loan originator, a Realtor that is an Accredited Buyers agent, and a good real estate attorney. Thanks,
Jim Dvorovy
Cutler Real Estate
203 Applegrove NW
North Canton, Oh 44720
Cell 330-685-4615
email: jdvorovy@CutlerHomes.com
0 votes Thank Flag Link Thu Feb 18, 2010
hi again....i respect your opinion james and to be honest with you...i agree with you...but since fnba is a bank...they will consider not ballooning. depending on the circumstances..but as banks are many times come up for sale and are sold....it makes their portfolio look far more attractive, plus it gives them the opportunity to refinance their own borrowers...i have closed several different borrowers thru the years with them and they are a reputable lender..fyi...they also lend on commercial properties...thanks for your comments...best regards...bob mcclure- first preferred mortgage- southfield, michigan....
0 votes Thank Flag Link Thu Feb 18, 2010
M,

Nothing against Bob (except he lives in Michigan :) ) but I would stay away from any loan that will balloon in (5) years from now. That could be dangerous. I would NOT even consider a balloon because of what rates are predicted to do in the next several years. If you decide to do a balloon loan you had better understand it COMPLETELY.

This is just my opinion, and I know what opinions are worth so take it with a grain of salt.
0 votes Thank Flag Link Thu Feb 18, 2010
Hello Malzers,

In addition to the options presented by the other professionals, you could also look into getting someone to co-sign on the loan with you. You may want to consult with a qualified mortgage professional to see what viable options you would have. The price point you are considering in Twinsburg is fairly competitive, so it is certainly a good idea to have your financing solidified as soon as possible.

Feel free to learn more about us on our website, http://www.schumanteam.com, or read our blog, http://www.clevelandhomeexperts.com

Dan and Amy Schuman
216-346-3235
Web Reference: http://www.schumanteam.com
0 votes Thank Flag Link Thu Feb 18, 2010
good afternoon..........you don't need a rent-to-own with that kind of downpayment...i suggest staying away from that possibility...contact the below listed bank...they are in east lansing, michigan.....and are licensed to lend in ohio...they are portfolio lenders so the rate might be an inch higher, and they will balloon you in five years..... first national bank of america...
fnba.com is their website....also....part-time income can be used to qualify you but it is averaged typically over two to three years...even if your dti is high, you still might qualify...lasly....if your business pays any or all of your monthly obligations, ei. car payments etc...and you can prove it with six to twelve months of cancelled checks...then those monthly payments will not be figured into your debt ratio when applying for a mortgage....best regards....bob mcclure- first preferred mortgage- southfield, michigan....
0 votes Thank Flag Link Thu Feb 18, 2010
Malzers,

A lease-purchase or a land contract are both options, true. You might also be able to buy a home with seller-financing. Whatever you do, if you decide to do a lease-option or a land contract (or even seller financing) GET AN ATTORNEY. Those types of agreements can be very tricky and a lessor or a buyer can get shafted in many ways if the language isn't written fairly. Ordinarily there is no standard form in Ohio (that I know of) for a lease-option or a land contract which means it can say just about anything. Be careful!
0 votes Thank Flag Link Thu Feb 18, 2010
Hello,

Land contrat is the best option during this time frame. If you do a land contract and you are a first time home buyer you qualify for the 8,000 tax credit and 6,500 hundred if you a move up buyer. You have a nice down payment so you certainly have some leverage with a lease option.
0 votes Thank Flag Link Thu Feb 18, 2010
A land contract would be a good option. Seeing you have a sizable down payment and if you can prove that you all have had steady income over several years then one may consider doing a land contract.

Tyrone T Franklin
330-227-4893
tyrone@tyronefranklin.com
0 votes Thank Flag Link Thu Feb 18, 2010
Hello Malzers,

If the program you are referring is a "Lease Puchase Agreement", those can be a viable way for you to take ownership of your next property. As buyers you would negotiate the terms of the agreement with the seller. Terms will be things such as how much you would like to put down, monthly payment, who pays insurance, taxes, etc. whether any of your monthly payment would to towards the principle, etc. Your agreement should then be drawn up in the correct legal context by a real estate attorney, and recorded at the court house in the applicable county. Often times it is a five year period of lease, at which time you will have established good credit and be able to obtain a mortgage loan and take full ownership of property. Is it smart? It all depends on you, your situation, your goals, the property, the seller, etc.

It would be in your best interest to be fully represented by a buyers agent that would be looking out for your best interests.

Thanks, Jim Dvorovy, Realtor
Cutler Real Estate
203 Applegrove NW
N. Canton, Oh 44720
Cell 330-685-4615
0 votes Thank Flag Link Thu Feb 18, 2010
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