Where can I find rent to own /lease option to buy home/condo in Duluth area (30096)?

Asked by Josh, Duluth, GA Mon Oct 22, 2012

My fiance and I are looking to buy our first house. We are looking for a rent to own/ lease option to buy. My fiance has good credit, but not good salary. I on the other hand will have a good salary, but not good credit. We figure that that if we do a 2 year lease option to buy at the end of the lease we will have the credit and income to get a loan. Any help would be greatly appreciated. Thanks in advance.

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Michael Hammond’s answer
Michael Hamm…, Agent, Suwanee, GA
Thu Nov 1, 2012
Old maxim. A word to the wise is generally sufficient. Two should be more than ample. Caveat Emptor, Josh. Please call, text or email if we can provide further assistance. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com

http://www.SellsRealty.org

http://www.city-data.com/

http://www.greatschools.org/
0 votes
Tim, Other Pro, Duluth, GA
Thu Nov 1, 2012
I am a real estate investor and if you are interested we can work together. I can buy a house for you which you can rent and put in clause for you to buy at the end of the lease. You get to choose the house of your liking.

This way you get to live in the house that you want and I can put my money to good use. Call me at 678-64-3757 .
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Thu Oct 25, 2012
Well..............Don't you think that since most everyone has shared similar advice - it is possible there is a reason for that, and that the advice has real value?

Regardless of a buyer's "situation" - I think we all (should) agree with the phrase - "buyer beware"!

Make very sure you understand all the implications and potential pitfalls of entering into any kind of rent w/option to own agreement...........better yet, have an attorney look over it before signing anything, and make sure you're protected.
0 votes
FiyaaBurnz, Home Buyer, Atlanta, GA
Thu Oct 25, 2012
I asked the SAME question on here... Got ALL the SAME Answers! Everyone's situation is different for what actually "works' for them. If you would like a name & # of someone who can answer your question and HEAR your Entire situation... Let me know I'd be more than happy to pass it on to you!

You can make your own decision from there!

Good Luck!
0 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Mon Oct 22, 2012
I do not suggest doing lease purchases. There are simply way too many things that can go wrong with one from either side.

In order to do true owner financing, the owner must own the property free and clear of any mortgages. Very few sellers are going to be in that position.

If the property currently has a mortgage on it, the owner cannot legally transfer the title to a buyer without the mortgage first being paid in full. Most all mortgage loans have a due on sale clause. This due on sale clause requires that the mortgage be paid in full should a title transfer occur.

The buyer is also at great risk on a lease purchase transaction should the seller quit making their mortgage payments. Right now, many sellers cannot afford to make their mortgage payments or simply chose not to continue making them. I have seen where the buyer is making their rent payment, but then the owner is not paying the mortgage. The next thing the buyer knows is that the home is in foreclosure. That means the buyer will generally not get back any of the money they have given as earnest money or security deposits.

It is also a big risk on the buyer. If your credit is not where it needs to be now, there is no possible way of you knowing it will be acceptable in a set amount of time.

Before entering into any type of agreement like that, the buyer needs to make sure that they fully understand the potential pitfalls that could arise. Should the seller default on the mortgage, the buyer could lose ALL of the money that they have invested. Until you are able to purchase, renting is generally the safer option.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes
Rick Musto, Agent, Roswell, GA
Mon Oct 22, 2012
Josh - I would like to take a slightly differnent approach than my colleagues that have commented below. While they are all correct in pointing out the potential problems with a lease/purchase, there are also very good reasons to do so for both you and the seller. I do agree that you should get an assessment from a mortgage broker to help you ascertain what your specific credit situation is. Once that is completed you will have a better handle on whether or not a lease/purchase is the way to go.

Debbie also mentioned the fact that you are setting a price for a home one or two years in advance and that could be risky. With a property drafted lease/purchase agreement that hurdle can be handled by both the buyer and seller. I would be happy to help you with this once you speak with a mortgage broker about your situation. If you would like a referral for one please let me know.

Best of luck to you!

Rick Musto, Managing Broker
Buckhead Home Realty
770-480-7699
rmusto@buckheadhomerealty.com
0 votes
Veronika Bar…, Agent, Roswell, GA
Mon Oct 22, 2012
Josh,

Lease-to-own options never benefit buyer: large deposit is required that will be forfeited if you won't be able to qualify for a mortgage at the end.

But most of all, the selection of homes offering lease-to-own option is so limited, you would not find many homes to choose from. And, you will be responsible for the house maintenance/repairs.

It is much safer from all and any stand points to rent until you qualify for financing.

Feel free to call me, I'd love to learn more about your housing situation and how I can assist you.

Cordially,


Veronika Barash, Realtor®,


CERTIFIED SKILLED NEGOTIATOR

REO & SHORT SALE CERTIFIED

CERTIFIED MARKETING SPECIALIST

RELOCATION SPECIALIST


http://www.AtlantaSelectHomes.com


678.230.4235 c

678.287.4800 o

404.410.6983 f
0 votes
Michael Hamm…, Agent, Suwanee, GA
Mon Oct 22, 2012
Have you talked to a Lender yet to ascertain when you will be able to convert the Lease into a Purchase? This is a hazardous road filled with many potholes, Josh, if you and/or your Agent do not understand the concept. Please call, text or email if we can provide further assistance. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com

http://www.SellsRealty.org

http://www.city-data.com/
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Mon Oct 22, 2012
I have a feeling you don't truly understand what is involved in a lease with the option to own.

To be brief - the sale price is usually set NOW, not when you actually go to purchase the house - do you really want to lock in a price for the future?
You also have no idea what the rates will be in 2 years.

Another very important part is that you will have to give some NON-refundable upfront money.

If you don't have a lump sum to give, you will pay an amount of money OVER and ABOVE the normal rent. That overage is the amount that will be applied to the purchase.......or forfeited if you don't buy the house.

I think some people in your situation mistakenly think their entire rent will be applied to the purchase. This is not usually the case.

So.....
Here is the problem...........if you don't qualify now (which is what you stated ) then you better make darn sure you will be approved for the loan 2 yrs from now.......and that the house will appraise out.....or, you will lose that upfront deposit.
It's risky.

My advice?
Save up and get your credit and income where it all needs to be so you can move forward with a purchase when the time is right.

Best wishes.......
0 votes
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