Posted by Clair-MO on July 16, 2002 at 08:08:39:
Paul, If I have a tenant buyer in my home who have a problem with his credit I try to help the folks out by suggesting ways to repair their credit so by the time of the option to buy get here. They will be able to get refinancing to buy.
Lease Option - Posted by Paul Martinez
Posted by Paul Martinez on July 16, 2002 at 24:24:48:
My question is two parts:
If you lease option a home to someone without credit, how do they qualify for a loan at the end of a years lease?
Do you avoid capital gains, if you live in a house for two years, then lease/option it out for a year? Or, do you have to live in it for the last 2 yrs to avoid them?
Paul
Re: Lease Option - avoid capital gains - Posted by Patrick
Posted by Patrick on July 16, 2002 at 16:14:26:
You have to have lived in the house for 2 of the last 5 years - they do not have to be last 2 years. If you lived there for 2 years, then leased or rented the house for 3, you’re OK on the capital gains (up to $250K for a single person or $500K for a married couple) as long as you sell by the end of the 3rd year of leasing.