**Sigh** The highs and lows of moving...

[Scootergirl]

HIGH: You may remember that I posted not too long ago that we sold our house in a day to the first couple that looked at it.

HIGH:  They had the home inspector come out yesterday and he found NO problems!!

LOW:  It seems the couple misrepresented their pre-approval status and can only get an FHA loan, which means the house would have to appraise for no less than $139,000. Well, we wouldn't be selling it for $132,000 if it would appraise for $139,000. So, FHA won't approve the loan for the sale of this house.

HIGH: Fortunately, they must love the house because they've agreed to do a lease/purchase agreement, which it turns out, is better for us because we now will have to pay NOTHING out of pocket as the couple will have to pay $5000 down, which goes towards the real estate agents commission if the couple decides to buy the house after a year. (with the sale of the house, we were going to have to be paying about $4000 when all was said and done). And, the real estate agent manages the property while it is being leased so if there are any repairs, etc. that need to be made that a landlord would normally take care of - they take care of that.

So, I guess this turns out in our favor. Has anyone done a lease/purchase arrangement before?  Are there any other questions I should ask?

[ZooCrew]

Well, I don't know anything about anything about buying/selling houses (hubby handled that end as I wasn't here) but I wish you the best of luck and I hope it all works out to your advantage. 

[Rajas Mom]

I've never heard of them before.  I'd encourage you to do as much research online as possible.  I think it's a state to state thing.  We have land contracts here, but I think it is different.

Good luck!

[kathryn]

I have seen the lease/purchase agreements but we actually did the owner finance when we bought our house.  I would definitely look into any penalties that you and Aaron would be held liable for if the couple back out or for any reason move from the house before the purchase/lease is over.  Sorry that I can't be of any more help.  Good luck on the move.

[Ali]

Hopefully your real estate agent can answer all your questions - if not, I'd get a new agent. We couldn't (and haven't) been able to sell our home in Florida when we moved to California 8 months ago, so our real estate agent was able to find us renters. It has worked out well so far, but I know that we did ask for a pet deposit, and we had to do find another carrier for our homeowner's insurance on that property. Our regular company wouldn't underwrite the policy on the home once it was not our primary residence. Other than that, it's been smooth. Awesome that you don't have to deal with any of the landlording stuff!! If your tenent/buyers are good and the agents involved are good, it should work out well for you! Good luck!

[Scootergirl]

Thanks for the tip about the insurance. I didn't even consider that they might not contnue to insure the house. I'll make sure Aaron checks into that.

[Icerotti]

I have never heard of that. Good Luck with everything.

[lins_saving_grace]

FHA is a pain, but they have all these rules for the protection of the loan.  It's a great system, but it makes people jump through hoops and the process takes a while longer than everyone would like.  That's a good thing they found a way to make it all work out.  Some sellers put right in the PA that they only accept conventional financing so they won't get involved in the FHA mumbo jumbo.   
Just sit back and let the realtors do the legt work.  that's why they get 7% commission.  they'll order all the inspections and appraisals and the bank will work the numbers.  The borrowers' lender will do all he can do to get them in the house so he can get his commission too.  Try to sit back and relax.  it should all work out.  appraisors work the numbers too.  It's a little underhanded and unethical, but they work with the lender to make the numbers work...afteral l everyone wants to get paid.  they gotta make it work.