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is it normal for a seller to ask 10% down for lease purchase?

Last Post 04 Mar 2010 05:10 PM by rlrich0565. 6 Replies.

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Denis
Posts:1

30 Sep 2008 09:33 AM
I am looking at a house to lease purchase. The seller (I think he is an investor) is asking for 10% down, is this normal???

Douglas Ingram
Posts:26

30 Sep 2008 09:44 AM
No - 10% is not typically the norm for a down payment on a lease purchase. However, due to the wide range of sellers, realtors, etc. marketing properties via lease to own you come across a wide variety of requirements. These requirements also tend to vary by geographic market as well. In today's market competition is fierce because there is such a large amount of inventory on the market. As a prospective buyer (via lease purchase) I would encourage you to shop around and find a property that (1) you like and can see yourself purchasing; (2) is a good deal & has reasonable requirements; and (3) has an owner or property manager that is plugged-in to lease purchase contracts and knows the steps required to get you to a purchase stage. Lastly, in the many years I have been doing lease purchase transactions I find it is most common that sellers ask for somewhere between 1% and 5% (i.e. on a $200,000 house they would expect somewhere between $2000 and $10000 as down payment). Hope this helps! Regards Doug Ingram Nesters.com http://www.nesters.com

Anne
Posts:4

01 Oct 2008 01:11 PM
Actually depends on the area. But "NO", if someone had 10% down they could probably purchase it. Although if the owner is giving the full 10% down as part of the downpayment-purchase price when it closes then ok, if affordable by the leaser.

Meli G.
Posts:4

10 Oct 2008 11:05 AM
Hi Denis, I've been doing lease purchases for many years and I've never asked a buyer to put down 10%. If they had that kind of money they can get a loan and purchase it right there and then. I usually ask for 1-2% down on the lower priced homes and in the bigger, more expensive homes I ask 3-4%. Of course nothing is written in stone. There are many variables in the process that will effect the amount both parties will agree on. However, one main thing to keep in mind, whatever the amount, DO NOT SIGN for something you're not sure you can pull through. If you can't close by the agreed upon date, you will lose the money. So, be careful!

Susan
Posts:2

18 Nov 2008 02:42 PM
Actually (in response to the other comments), a down payment is not the only obstacle to a home purchase. Often, with poor credit, the bank will not write a mortgage at all. Also with lease options and rentals, the credit rating is checked and a larger deposit, downpayment may be required.

29 Mar 2009 12:41 PM
Now there is a Program out there for the Lease Purchases can go to it is called Naca it is a 100 percent product with no downpayment and closing costs go and check it out.

rlrich0565
Posts:3

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