Should we refinance to offer a lease option on our home...

[Emily Snapp]

Our home is under contract and the buyers are having trouble with their financing. We are considering converting our USDA loan to a conventional and doing a lease with option to purchase for them. They would have to buy it at the end of 12 months or we would need to sell to someone else. We do not see being able to do this long term (we think we will need our credit freed up for our primary residence).

The sale price is $154k, which (we feel) is very conservative. My question, should we increase the purchase price with the lease option? How much should we ask for the option fee? Comparable rent for $1300-$1400 in our area, but their mortgage payment would only have been $1150. Should we take that into account and try to keep their rent payment lower? How much of their rent each month should go towards the purchase price?