Lease with option has it's pitfalls, however can be a great alternative to selling your home. In this economy there are many people that will not qualify for a traditional mortgage for one reason or another. Many times it's not because they don't pay their bills. It may have to do with how they declare their income. For example, someone that is self employed may have perfect credit, however on their tax returns deduct all of their expenses to lower their taxability. Traditional mortgage mandate that 2 years of tax returns with sufficient income be required. Income is calculated from gross income for a W-2 employee and Net income for someone that is self employed. So you can see how they may become disqualified very easily. This would be a great person to sell your home too, however?
In order to do this successfully you'll need to require a down payment. Don't skip this step to rush to get them into contract. 3-5% is always suggest to make sure they take care and conduct themselves appropriately. The fear of loss is always greater than the fear of gain.
Payments need to be in line. Just because they can't buy through traditional means doesn’t mean they are desperate. Many sellers have a strategy to charge a high rate, down payment and hope to get the home back due to default. Good buyers watch out for this. It's like the most recent mortgage crisis, it may work for the short term, but it rarely works out. Most lease purchase options I see or write have a short term period the buyer has to obtain their own permanent financing. How do you expect this to happen if you are taking advantage upfront and during the process. Most of the time they don't get the financing needed because they don't have funds to document ability to pay. So if you want to sell your home and move down the road be careful. If you're willing to keep it for a long period of time, then I guess none of this matters.
If you need more information please give me a call. For buyers reading this I have a list of homes that are willing to carry.Sort By: MLS# Price City Subdivision Beds Baths Limit: 10 | 20 | 30 Per Page
Broken Arrow, OK
Jim Bigelow of Coldwell Banker Select
Holli Woodward of Keller Williams Realty
Broken Arrow, OK
Tom Ford of Keller Williams Realty
Gayle Roberts-Pisklo of Chinowth & Cohen, REALTORS