How To Structure Lease Option??????????
I found a house in my area I want to buy for myself. It is 163K which is a great current market price. I think it could go for about 152K. It also has a lease option. I can only get a loan for 140k. I thought about leasing it for a year until my credit is better and then I could refi with no problem. I dont know much about the lease thing. Can somebody tell me what to do so I don't get screwed on this deal?
How much you can negotiate depends on how motivated the seller is. At least they have already indicated they are open to a lease purchase.
First of all think of what you want and can do.
Do you want ot get a loan for $140k?
if so, you could ask the seller to carry a second, making up the difference between the $140K and your purchase price. Heck, depending on how much they want to sell, you may offer $140k!
You could ask for lease purchase option. Determin how long you want to lease, what the rent payments would be, if a portion of that rent woudl apply toward the purchase price, and what the purchase price would be.
You can look in the article section of this website and read more about lease purchase, or lease options.
The main thing is get out there and start negotiating. Determine what you want to offer, and put it in writing.
Feel free to update us, as we would love to hear how it goes.
Good Luck!