What's Better: Lease/option Or Owner Financing?
I've found a house in a hot area where the owner is willing to hold the first
-or- lease the house out with an option to buy.
In both cases he wants 5K down, to go toward the purchase price.
As a BUYER, which scenario is more advantageous, asssuming my credit is not so great?
(Sorry if this is basic...I'm new to this.)
$5K and he'll finance the rest??? I'd go with owner finance. It's cheap money, gives you control, and doesn't allow him to try to back out after the property has appreciated, fixed up, and making more money.
Unless you're planning on flipping the contract to someone else, then here's one very strong vote for owner finance.
What type of owner financing? If it is a land contract, or contract for deed or some other "deed after terms" then it's not much better than a L/O, as far as buying is concerned.
Get the deed. If he is offering financing where you actually are deeded the property upfront, then go for it.
Roger
Yes, I was thinking that if I could get the deed upfront, then I would be the owner of record for the first year and he would hold a lien.
Then, when I go for my own financing, it would be a re-financing deal rather than a 'new' mortgage. I would present the canceled checks as proof of timely payment when applying for the re-fi.
Does this sound right?