Owner Financing Info/Advice Needed

[Curt Davis]

So my wife and I have moved out of our old home about 3 months ago and sadly we are still the owners of that old home so needless to say I am paying 2 mortgages ( not fun ).  

I have an agent who brought me their clients who want to do owner financing. My HOA doesnt allow for normal rentals or leases so offering owner financing I think is the work around for that. I am currently asking $489,900 for the home. Value is in the $650k range.

Here is what they want to offer:  $489k price, 3% closing cost assistance, $5k non refundable down payment, 36 month lease with payments yr 1 $2,850 yr2 $2,950  yr3 $3,000.  

My major concern is the down payment.  Normally on a half million dollar home I would think to get at least $25k down.  Having actual owner financing in place, if they dont execute the terms at the end or they try to flake out and I have to evict them it will ruin their credit.  

Anyone have any additional suggestions for my situation?  I would rather sell it out right but sadly no actual offers yet.  

Thanks