Hi are Lease Option to Buy Safe?

Question

I have to move, rather being force to move cause I was ill in July so my rent was short. Rather than move to rent again I need to buy but credit is not so great. Here's the ad

Beautiful 4 bed 3 bath single family home.
It is located in the growing community of Lathrop. As you drive around you’ll see how many improvements are on the way. This is a nearly brand new house in a brand new community.

Map with Ariel Image: "http://local.live.com/default.aspx?v=2&cp=37.802545~-121.302848&style=h&lvl=15&tilt=-90&dir=0&alt=-1000&sp=Point.q90cfk4wr8kv_17364%20Stone%20Celler%20Way%2C%20Lathrop%2C%20CA%2095330-8819%2C%20United%20States___&encType=1"

The house has been designed beautifully and has a real sense of community about it.
You can see pics here:
"http://uk.pg.photos.yahoo.com/ph/akghaffar/album?.dir=a612&.src=ph&store=&prodid=&.done=http%3a//uk.pg.photos.yahoo.com/ph/akghaffar/my_photos/stone+cellar+way"

If you are commuting to the Bay area or Sacramento Lathrop is much easier to get to than Manteca because you wont need to take busy highway 120.
The area has a lot of great development coming and the design I feel is much nicer than anything I’ve seen in Manteca or Tracy. I am really in love with the area.

There’s more information on Lathrop here: http://www.lathropgov.org/
The home is ready to be moved into now.

FEATURES INCLUDE:
2328 SF living area
2 Story
HUGE Master Bedroom with HUGE master bath and HUGE walk in closet
3 additional good sized bedrooms (1 down stairs)
HUGE Family bathroom upstairs
Open living room with grand entry
Large kitchen and family room
Open and spacious design
2 car garage with remote controlled electric door
Central heating and a/c
Very nice landing at the top of the stairs
VERY LITTLE LAWN WORK for those who do not want to maintain a huge lawn.
Less than 2 minutes to Highway

1 year-6 month-month to month leases all ok.

Qualifying is easy, bad credit is OK. Please call for details.
Lease option to buy available. Please call for more info.

Answer 1

Don't do Lease Option, Rent-to-Own, contract for deed, buying subject to, etc. Too many of these transactions end up on foreclosure lists - I know, I track them.

The seller is offering this because they are in a bind. The house is nearly new, so there is no equity - you need to pay full price. If the owner gets into a situation where there's not enough dollars to pay the mortgage on the house they live in, AND this house that you plan on living in (even though you're paying the rent...) which payment won't get made?

Either rent OR buy. Don't try to combine them.

Answer 2

If your credit is not so great, you may want to consider an FHA mortgage, usually you can qualify with only 3% down, you just have to provide a lot more paperwork when it comes to fha, but you would still get the lower interest rates.

Answer 3

Yes, you can apply your rent for a period of time to close, you can hold the value at today's price. The down fall is the market is going further down, so negotiate that also.

Answer 4

There is nothing wrong with a lease option. It basicaly takes it off the market while you rent it and you have first choice to buy it. Lease with the option to buy.

Answer 5

before you do anything need to speak with your atty , as they are so many people playing this old game, and every thing that they say will not hold up in court,, you lose, see the atty before any thing signed..

Answer 6

It's safe.