Help! I Have A House For Sale, Lease With Option?
Good evening. I need direction. I have a house for sale that has been remodeled. It has been for sale for about a month. I have an inquiry for a lease with option to purchase. I told her I would consider that. She wants to know the terms etc. Can someone point me in the right direction? I have never done this before. Thanks!! Lisa T 
normally people who can;t qualify for a traditional mortgage will try to buy on a lease option - or they don;t want the expense of a traditional loan (investors).
You need to make sure this is someone that you want to do business with first - if they can;t get traditional financing, you really need to know why before you turn your house over to them.
Typically, you'll get 3% to 10% down payment which is non-refundable if they do not buy your house. and a monthly payment that either does or does not include a portion towards the principal.
During the lease term, you are responsible for all taxes and maintenance.
I'd start off at 5% down and a monthly payment that would be equal to the P&I of a 30 yr amort at 8%. Keep the option time to 2-3 years, but not less that 15 months since they;ll probably have to show a minimum of a 12 month payment history.
Thank you very much for your reply and direction. Lisa
The national average is 5 percent. I would never take less than 3 percent. I also would never give the T/B more than 12 months. There are lenders who will finance a T/B after proof of 12 canceled checks. Hope this helps.
True--about half won't buy. You can increase their chances by offering calculated rental credit. Still, it's better than just renting (pay late and lose the credit for that one month).