I currently live in a duplex that (in my opinion) needs a significant amount of work. I'm about to approach my landlord about buying the place, but I don't have the cash to buy and renovate. I thought the idea of a lease-option would allow me to save for the down payment and closing costs. Does having the lease-option interfere with my ability to qualify and get an FHA 203k loan? I want to be prepared with as my options as possible.
It would not interfere. This is exactly the purpose of a lease option. If you don’t have cash to pay an option fee though, what benefit does the seller get in locking up this property for you? Normally you pay a significant option fee that pays the owner for the lost opportunity of giving you the sole right to purchase while you get your financing together.
Thank you Patti, I appreciate the reply.