Posted on: 23rd May, 2009 04:43 pm
This is a slightly off-topic question but I couldnt find the right forum to ask, so please forgive me.
It had to do with using a lease purchase option to get the home of your dreams. I have pretty good credit, 747 last time I checked I believe. Unfortunately I have very little savings and cannot afford any downpayment whatsoever for a home. Since I dont forsee my credit ever tanking, I was considering qualifying for a home mortgage by entering into a rent-to-own agreement on a house and upon concluding my lease, exercising the option to purchase with my solid credit history and accumulated down payment in escrow.
If I could afford a 3% or 5% down payment on a home Im sure I would qualify for a loan. But I cant get a lown with no down payment at all. In 3 years or so, when the lease option concludes, I would have my down payment, and the home I want to buy. What do you all think of this idea?
It had to do with using a lease purchase option to get the home of your dreams. I have pretty good credit, 747 last time I checked I believe. Unfortunately I have very little savings and cannot afford any downpayment whatsoever for a home. Since I dont forsee my credit ever tanking, I was considering qualifying for a home mortgage by entering into a rent-to-own agreement on a house and upon concluding my lease, exercising the option to purchase with my solid credit history and accumulated down payment in escrow.
If I could afford a 3% or 5% down payment on a home Im sure I would qualify for a loan. But I cant get a lown with no down payment at all. In 3 years or so, when the lease option concludes, I would have my down payment, and the home I want to buy. What do you all think of this idea?
I think that is a fine idea. Keep saving your money. Hopefully the lending guidelines will fit your needs when you are ready to buy.
collect money for downpayment and then go for loan.
