But is it really.... you be the judge.
When we moved in, in 2005, we could have held the price of the home for $305K for $12K; then 2 yr. contract; and if we walked, we'd lose the $12K plus any extra on top of the rent.
Our rent is $1450/mo.
When we renewed our lease another 9 mos. (it will exp. 6/30/07) they would have wanted $15K to hold the price of the home around $315K (guesstimate). Home prices have been appreciating nicely in our area, but new homes now are offering $20-50K off if one can close in 30 days.
We are expecting our discharge to be mid-Feb.
Do we buy a new 2250 sq. ft. home for $255K (builder agreeing to pay roughly $3 of closing costs) which the price does not include closing costs and then end up paying $1800-2200/mo. on an 80/20 loan for 2 yrs. and then refinance in 2/09 only to have to pay closing costs again.....
or....
Do we take our landlords offer of NO MONEY DOWN (he's really being nice!?) to hold our home at $325K and pay an extra $150/mo. in taxes and then $400/mo. to come back to us in 2 yrs. He's wanting $2000/mo. in rent, instead of the $1450. But we'd gain $9600 back in 2009, we'd be able to get a conformed loan, vs. non-conformed now, and buy our home for $325, instead of the guesstimate price of $350K? Our rental home is gorgeous w/ many upgrades, plus we'd have our yard and wouldn't have to uproot the kids and sell the swingset ($600 Step2 set).
I already called our lender and she said it's a GOOD DEAL. I've been in tears--or joy--hoping that this is the best way for us and that it is so nice to not have to worry, etc. I've been very worried that our landlord would want to sell eventually and we'd have to move. But he doesn't want to have to pay realtors fees to resell the house and he wants it to be a win-win situation for us. He ran the #'s on a loan for us and came up with $2300+/mo. on the $260K home w/o a backyard. It's an alley loader home. For anyone who doesn't know what that is, imagine your yard being the space between the 2 houses.
Last mo. when the thread went on for quite awhile about non-conforming loans, someone mentioned this, but we were always told he'd want the $12-15K to hold the price of the home. So now the landlord will do the deal without that money. We've been paying him $1450/mo. since 10/1/05. We are good tenants.
The decision looks pretty obvious, but your insight is always appreciated!
And one more thing, our lender is proposing that when we'd go to buy this $325K home in 2 yrs. that the mortgage would be about $2500/mo. The $9600 back to us would go towards closing costs, basically. Our cars would be paid off and we would be more comfortable with $2500/mo. mortgage at that time. But the bottom line is we have to know soon if we want to stay here another...say...6 yrs, if not more, and we are comfortable here and the home works for us. The only thing that's lacking is neighborhood friends for our kids and walking trails. But I know if we moved to the other area that we like a little better, we'd never be able to get into a lease to own option without putting $5-10K down. Our landlord doesn't want that. How is that possible??!
Is this too good to be true!?
When we moved in, in 2005, we could have held the price of the home for $305K for $12K; then 2 yr. contract; and if we walked, we'd lose the $12K plus any extra on top of the rent.
Our rent is $1450/mo.
When we renewed our lease another 9 mos. (it will exp. 6/30/07) they would have wanted $15K to hold the price of the home around $315K (guesstimate). Home prices have been appreciating nicely in our area, but new homes now are offering $20-50K off if one can close in 30 days.
We are expecting our discharge to be mid-Feb.
Do we buy a new 2250 sq. ft. home for $255K (builder agreeing to pay roughly $3 of closing costs) which the price does not include closing costs and then end up paying $1800-2200/mo. on an 80/20 loan for 2 yrs. and then refinance in 2/09 only to have to pay closing costs again.....
or....
Do we take our landlords offer of NO MONEY DOWN (he's really being nice!?) to hold our home at $325K and pay an extra $150/mo. in taxes and then $400/mo. to come back to us in 2 yrs. He's wanting $2000/mo. in rent, instead of the $1450. But we'd gain $9600 back in 2009, we'd be able to get a conformed loan, vs. non-conformed now, and buy our home for $325, instead of the guesstimate price of $350K? Our rental home is gorgeous w/ many upgrades, plus we'd have our yard and wouldn't have to uproot the kids and sell the swingset ($600 Step2 set).
I already called our lender and she said it's a GOOD DEAL. I've been in tears--or joy--hoping that this is the best way for us and that it is so nice to not have to worry, etc. I've been very worried that our landlord would want to sell eventually and we'd have to move. But he doesn't want to have to pay realtors fees to resell the house and he wants it to be a win-win situation for us. He ran the #'s on a loan for us and came up with $2300+/mo. on the $260K home w/o a backyard. It's an alley loader home. For anyone who doesn't know what that is, imagine your yard being the space between the 2 houses.
Last mo. when the thread went on for quite awhile about non-conforming loans, someone mentioned this, but we were always told he'd want the $12-15K to hold the price of the home. So now the landlord will do the deal without that money. We've been paying him $1450/mo. since 10/1/05. We are good tenants.
The decision looks pretty obvious, but your insight is always appreciated!
And one more thing, our lender is proposing that when we'd go to buy this $325K home in 2 yrs. that the mortgage would be about $2500/mo. The $9600 back to us would go towards closing costs, basically. Our cars would be paid off and we would be more comfortable with $2500/mo. mortgage at that time. But the bottom line is we have to know soon if we want to stay here another...say...6 yrs, if not more, and we are comfortable here and the home works for us. The only thing that's lacking is neighborhood friends for our kids and walking trails. But I know if we moved to the other area that we like a little better, we'd never be able to get into a lease to own option without putting $5-10K down. Our landlord doesn't want that. How is that possible??!
Is this too good to be true!?
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