Posted by Alex Gurevich on June 07, 2000 at 18:13:18:
Actually, FHA has been working on a “qualified” lease/purcahse program for a while, or at least so I was told by a broker.
They require a 3% downpayment, the price is predetermined upfront by an appraisal, the lease payments are calculated based on the 30 years amortization at current FHA rates (inlcuding PITI). Certain participation of the Seller in Buyers’ closing costs is required. With year worth of timely payments of rental, they insure the loan funded through an approved broker.
I am not sure how far ahead they’ve gone with this program, but it was amusing to look into it, as no traditional FHA underwriting guidelines were to apply.
Of course, only homes within the FHA loan limits would qualify.