Lease Option: Any Limit for money applied towards Mortgage/ Down Payment???

[Lokesh W.]

I am trying to do cooperative lease option on a property. The owner is asking for sale price that is at least $20K above the market price. I can make it up by applying 50% of the rent money towards the sale price (down payment).

Is there any limit to the amount that will applied towards sale price on a monthly basis in a cooperative lease option purchase? Can we apply 50% of the rent or more towards the mortgage/ down payment?

The other thing I can do is increase the lease term from 2 years to 3 years to make for the higher price...

Any suggestions are greatly appreciated.

[Monica Breckenridge]

You can put any price as a purchase price on a lease option as long as both parties agree to the price. However if the property wont appraise when they do want to buy the house there will be an issue. The new lender wont lend more than the appraisal value. You can do a 2 or 3 year lease option. I usually only give my tenant buyers 10% of the monthly rent as a rent credit.