Lease Option/Rent to Own
I have a house in Oklahoma I own in my name and have a fixed
rate mortgage. I have insurance on the house with a
landlord policy.
I am selling the house to someone doing owner financing.
The buyer is waiting to give me a non-refundable 10K deposit
for the house, which will be applied to their purchase of
the home after 3 years. I need to get him contract asap.
I've also told the buyer I'll finance starting at
$1200/month for the first year. 1st year at a rate of 7.9%,
2nd year 8.9%, then 3rd year at 9.9% (I want the interest
to increase to encourage them to purchase the property and
not continue financing with me after 3 years). After the
three years they can renew lease or have option to purchase
the home if they can get bank financing to pay for our
agreed upon amount.
During the 3 years they will be using a credit repair
service so they can qualify for a loan at the bank.
Would this be the correct form they would need to fill out
for my state:
http://www.findlegalforms.com/product/oklahoma-residential-
lease-agreement-with-option-to-purchase/
The home is currently in my name. I've heard people say I
need to put the home into a trust before I have buyer sign
the contract as they will be living in a house that I am liable towards. How does this work?
Please let me know, this is the first lease-option I have
done.
Thanks,
Johnny
You describe seller financing i.e. a Land Contract or Contract for deed yet you say Lease Option. They are different, which one ya going to be doing. Interest rates don't apply to lease option/rent2own. Herbster