Tammy Farfone, Home Buyer in San Juan Capistrano,...

we have good credit but no large down payment to get financed.is anyone doing lease to own in these hard?

Asked by Tammy Farfone, San Juan Capistrano, CA Sat Apr 25, 2009


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Well dear you need to carry out market study to check on reliable financial institutes , basis on which you should apply for a loan with a low rate of interest.
0 votes Thank Flag Link Mon Oct 27, 2014
Hi Tammy,

A couple of good answers here....the FHA loans are definately an option for you and the down payment can be a gift from a relative. The other thing is that often lease listings will state that the owners are willing to sell as well, so you could approach them with a first right of refusal thing. And perhaps if you do go forward with a sale, they can credit you some portion of rent for the down payment.

Because it's a complicated deal, why don't you talk with a realtor that you feel comfortable and start putting the pieces together?

0 votes Thank Flag Link Sat Apr 25, 2009
Tammy, you are describing a Lease Option. Before you exercise a Lease Option, there are many factors to be familiar with.
If you decide to go this route in the future, make certain you do so with a seasoned agent who is experienced in Options.
Just to name a few factors: you complete a Lease and a Purchase agreement in the beginning; therefore you complete all inspections, etc. as if you were exercising the option. Also, for your protection you will want it recorded, etc.
There are equity owners who will entertain Lease Options (abbreviated for Lease with Option to Purchase).
Typically they want more down than 10% to cover commissions, closing, etc.
I would suggest you wait until you have enough down.
There are always good buys and you will witness quite a few in the next two years.
Disclaimer: The above is just a professional opinion.
If I can assist in any way, please contact me @ 949-378-4005 or lagunacastles@cox.net.
Steven Abraham
Prudential CA Realty
"24 Years of Professional Real Estate Experience"
0 votes Thank Flag Link Sat Apr 25, 2009
has anyone discussed FHA loans with you. They only require 3 1/2% down. Is that something you could do?
Web Reference: http://www.BillMGodwin.com
0 votes Thank Flag Link Sat Apr 25, 2009
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