have questions on lease/option - Posted by trevor

Posted by JohnWe (NoCA) on January 20, 2000 at 12:38:12:

First of all, if you can get a 50% rent credit go for it!

As far as the $10,800, This is considered part (or all) of the down payment when you buy it at the end of 3 years.

The underlying mortgage doesn’t have much to do with anything. At the end of the 3 years, you’ll probably get new financing. If you keep your credit clean for 3 years, I can almost guarantee you that you won’t have problems getting a loan unless you have some serious problems (bankrupcy, foreclosure, etc.).

Think of a land contract as a seller-carryback with the seller holding the title to the property. You pay the seller like you’re paying off a mortgage. If you do it this way, MAKE SURE TO RECORD YOUR CONTRACT! I would also setup an escrow with the title to make sure the seller doesn’t disappear with the title to your property!

Hope this helps.

have questions on lease/option - Posted by trevor

Posted by trevor on January 19, 2000 at 22:30:11:

We are looking at a house for 80 grand. The owners will lease/option. They still have a mortgage on it. Say we lease for 3 years at 600 a month with 300 going towards down payment. Do they have to take 10,800 off the agreed price? How does there curent mortgage affect the time of purchase? Does the bank lend you 69,200 for the home at the end of three years. What if you credit is not so good. Will a bank finance someone who has made there payments on time?
What about land contract? In WI this is a common thing. When you make a payment under land contract, does the whole payment go towards the down payment, or only a portion of it?
Thank in advance