I can send you listings for homes with a separate apartment/flat/studio in your price range in that area of Chula Vista it you'd like. And, just an FYI, this home has a combined monthly HOA fee and Mello Roos assessment of over $675 per month.Separate in-law quarters have become more popular in recent years. Just email me off forum if you'd like to see some listings in the area.
Cory La Scala, REALTOR
Lic # 01443391... more
Follow up to Mortgage Banker. Superior Mortgage... contact Armando Formariz 619-733-3697 He would be glad to assist you with your loan....If you have any questions regarding the Home buying process I'd be glad to answer any questions you may have. Tracy Lopez w/ Realty Executives Dillon DRE#01413054. TLopez@RealtyExecutivesDillon.com.... more
Rent to own, known as a lease option, is a technique investors use to make money. You pay higher up front, about 5% of the purchase price, plus extra rent each month. The regular rent goes to the owner, but the additional payments are used to buy down the price of the home. If you end up not being able to qualify for a loan from a lender at the end of your option period, you don't get any of that money back. The investor will try to get you to take the shortest option period possible, maybe one year, banking on the fact that you won't be able to exercise your option by the end of it. Most renters end up not being able to qualify for a loan, which is why investors do it.
For example, if you buy a $275,000 home and a $7,500 up-front fee, then pay a rent premium of $500 a month on top of their $1,600 market rent, you'll have $13,500 saved after one year and $25,500 after three. But, if you just did that on your own, you'd have the same amount with interest.
That would be great since prices are rising, but investors are fully aware that prices are rising, so your option period will be short.
One disadvantage is if you can't qualify by the end of your option period, usually 12-24 months, you paid all of that for nothing. You may be able to get a contingency worked into a contract for the return of the extra rent and up-front payment in a buyer's market, but we're in a seller's market. Another is the owner who negotiates a lease option, but doesn't tell you he's in foreclosure, and the home is repossessed without your knowledge, a scenario far more likely in this market.
Have you spoken to any lenders yet to see what you need to qualify? When you have this information in hand, you'll know if you can swing a house with the rent applied to the loan. But, it'll only make sense if you can get a long option period, AND you know you'll be able to qualify at the end of it. But, if you can save 3% or 3.5% for a down payment by the end of the option period and still get a similar house, you won't need to do a lease option, and you'll have many more houses to choose from.
So, do two things:
1. Talk to a lender or two (I can send you some to talk to)
2. Do a search on lease options, and you'll find a lot of information on this investment technique, because that's what it is.
Good question, and good luck! Call or email anytime with questions.
Cory La Scala, REALTOR
Lic # 01443391... more
It sounds like you need to speak with lender that will be willing to review your credit history with you and make suggestions of what you need to do in order to bring up your score as well as establish necessary credit history in order to qualify. If you have any collection accounts, you need to get in contact with the creditors and when you have paid off the collection account, have them send you a Paid In Full Letter. Send a copy to all three credit bureaus. Don't assume that the collection agency will contact the bureaus for you, be proactive. This may take a little time, but don't get discouraged. The sooner you start, the sooner you will be able to purchase your own home.
Century 21 Rivera Realty
Find me on Facebook @ www.facebook.com/sjrealtorcaraesposito... more
Well that depends on if you want mortgage insurance or not. If you are ok with mortgage insurance you can do 3.5% down. If not, you can do 10% down.
Hi, A 700 credit score is definitely god enough to buy a home. the other main questions will be what your income is, your debt to income ratios, assets, etc. Your best bet is to make a phone call to a reputable mortgage lender and have them answer all of your questions. There is no fee for the research and you will get the answers straight from the horses mouth. there are many programs available today so they will tell you what your options are.