Lease Purchase: Perhaps a solution to tight lenders

There is a good possibility that mortgage lenders will tighten up their lending practices to the point that anyone with a mere blemish might find it difficult to get a loan. It is almost a sure thing that lenders will require a significant down payment, a down payment many people might not have. In Savannah Ga, I am already seeing signs of tightening. There are a lot of homes on the Savannah GA market at good prices, but there aren't many ready, able and willing buyers.

There might be a solution, a way a buyer can take advantage of low prices even if they can't get a mortgage right now. Lease purchase might be the perfect solution, if you can find a seller who will put together such a transaction.

I have worked with investors in the past who have had lease/purchase plans as a part of their investment strategy. Basically, a lease purchase is an agreement that you will lease a property for a period of time, 6 months, a year, two years, etc. and then buy the home at the end of the lease period. It is good for buyers who have a blemish on their credit or need time to build up a down payment. Lenders like to see you have a lease purchase agreement so you can show a track record of on time payments -- this helps to build your standing with the lender. You can sometimes work out an agreement where part of your rent goes toward the purchase. There is also the chance you can put together an agreement where a private individual will finance the home until your credit has improved. Savannah, GA offers great opportunity for lower priced homes, so this may be a way to not miss out.

Anyone interested in such agreements who need consultation, email me at Mike@MikeFarmerRealty.com and I will let you know what I know.

Mike from Savannah