do i need a down payment if i get lease to own homes?

Asked by Joanne Thompson, Fresno, CA Wed Jan 23, 2013

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Ruth and Per…, Agent, Los Gatos, CA
Wed Jan 23, 2013
Hi Joanne

Yes do need a Down Payment for lease to own, as should you not buy at a later period
per the lease, you then loose the down payment.

Have a Lawyer or Realtor help you draft up one, and do not sign one blindly.

Good luck.

Ruth

http://www.trulia.com/blog/perry_mistry
Web Reference:  http://www.ruthandperry.com
0 votes
Bill Eckler, Agent, Venice, FL
Wed Jan 23, 2013
Lease options are normally drawn up by an attorney that represents the seller. You can be assured that they will recommend that the seller protect their investment by requiring a sizable deposit in conjunction with the agreement.
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Debra (Debbi…, Agent, Livingston, NJ
Wed Jan 23, 2013
Yes, Joanne, and most likely it will be non-refundable if you do not purchase the house - for whatever reason.

If you don't have a down payment, you will be asked to pay rent over and above the usual rent (only that overage, not the full rent you pay, would be applied to the purchase price) but - you will forfeit that, also, if you don't buy the house, so make sure you really understand what this kind of arrangement means.

Best wishes.......
0 votes
Cindy Davis, Agent, San Diego, CA
Wed Jan 23, 2013
It will depend upon who the owner of the property is, but I would certainly assume so in most cases. Do you really want to get an option to purchase if you don';t even have a downpayment?
0 votes
Douglas Lagos, Agent, Los Angeles, CA
Wed Jan 23, 2013
Hi Joanne,

Your answer would depend on the contract that you sign.
Some lease-to-own contracts, put part of the monthly payment toward a future down payment; others require a small down payment in the back end, just when you sign the final purchase contract.

Talk with a knowledgeable agent in your area. Interview several and pick the one that you feel most comfortable working with.

Douglas Lagos
Realtor, Certified HAFA Specialist
Coldwell Banker
Web Reference:  http://www.douglaslagos.com
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