I spoke to a gentleman last week that lost twenty grand doing this. Trying to â€œwork aroundâ€ the federal system that is in place to protect you increases your risk a lot more than you realize. Do you know how a mortgage underwriter will interpret the contract when it comes time to pay off the seller? They will follow the mortgage underwriting guidelines in place at that time. Most loan officer could not tell you how they will view it today much less a year or two from now. What I know for sure is that underwriting guidelines are constantly changing. They will be different a year from now. A new update to DU, Fannieâ€™s underwriting software, will be released later this month, I hear some mortgage products are being terminated and others tightened again. How will it, or will it impact a lease option? Exactly, we donâ€™t know!
If you just send me the money you want to toss out the window I will at least send you a thank you note.
Fix your credit issue and then buy a home.
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.