TB Trying To Buy. Bank Wants To See Down PMT

Comments(7)

• 
  joefm263rd December, 2004

  I would assume that you show them the records of what you did. You have reciepts and such I assume and also in your contract it states how much of thier payment goes towards the purchase price of the house?

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  JohnCl3rd December, 2004

  Absolutely.
  
  Are you saying the buyer will need to work with a mortgage broker/loan officer/underwriter that actually knows what a lease purchase is?
  
  How is this done so that the $12/hr. bank employee understands?
  
  JohnCl

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  LeaseOptionKing3rd December, 2004

  Does your Contract state that option consideration will apply towards a down payment if they exercise the Option? Most lenders will go by the Contract. Prepare to show a deposit slip for that day and a monthly bank statement.
  [addsig]

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  tmpringle3013rd December, 2004

  I work with someone who considers a L/O buyout to be a refinance not a purchase. In this scenario, the down payment would not matter, as the appraised value is considered.

• 
  JoDa8th December, 2004

  Here is how I do it.
  
  1. The purchase offer you did with your T/B should indicate the binder or non-refundable deposit that you have a receipt slip for that indicates what it is. You have to provide proof of that information to the lender, along with the T/B’s cancelled checks indicating the same. (Important)
  
  2. You also should have been taking your payments of rent and the extra $150 dollars toward the purchase price or deposit of the house in two (2) separate pmts. One for $1350 that indicates the RENT and a separate cancelled check and or deposit slip and or receipt (proof) that you received $150 in pmts toward their down payment in installments. YOU MUST PROVIDE SOLID PROOF OF THAT TO THE LENDER FOR YOUR TENANT/BUY TO GET THAT CREDIT.
  
  if you take the payment as one payment $1500, you and your tenant will have a very hard time proving you did in fact get those down payments and credited toward the down payment. The lender will not take your word that you were crediting $150/mo toward the down payment T-H-E-Y W-A-N-T PROOF by showing deposits and cancelled checks. (in most cases).[ Edited by JoDa on Date 12/08/2004 ]

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  LeaseOptionKing8th December, 2004

  Note: If you make rental credit go towards purchase price, you don't need any documentation for that (since it just lowers the sale price).
  [addsig]

• 
  mitnc21st December, 2004

  This can be done as a refi easily if they have been living in the house 12 months or close can always get an exception. Its a lease with option its a no-brainer for most mortgage bankers.
  [addsig]