Guest Diver Report post Posted June 23, 2008 Hi Michael, Nice to be aboard. I'm the Jack of all trades and the master of none.Anyway I think I know the answer but sometimes I have to told.Question is are there any homeowner mortgages out there that I need to avoidwhen doing a lease purchase?Thanx, Diver Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted June 23, 2008 Whenever I bought sub2, I stayedaway from any government-backed/homeowner-assisted mortgages. As with lease options, I'm sure the same would apply. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 24, 2008 With a lease option, since the title isn't changing hands we can be a bit more footloose when it comes to mortgages. While it is a possibility that an option might trigger the DOS clause, the probablilty of this happening is remote. Of more concern would be making sure that whatever the underlying mortgage is, that it is being paid each month. Share this post Link to post Share on other sites
Guest Diver Report post Posted June 24, 2008 With a lease option, since the title isn't changing hands we can be a bit more footloose when it comes to mortgages. While it is a possibility that an option might trigger the DOS clause, the probablilty of this happening is remote. Of more concern would be making sure that whatever the underlying mortgage is, that it is being paid each month. Thanks Jason and Michael,I figured as much. Jason I'm versed in Sub2 also and consider the Sub2 and LO my one two punch.And hey Michael I make a mean lasagne to. Diver Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 24, 2008 . . .And hey Michael I make a mean lasagne to. DiverSpaghettios and Cheeze Wiz ain't lasagne. Share this post Link to post Share on other sites
-Tony- 0 Report post Posted June 28, 2008 Question is are there any homeowner mortgages out there that I need to avoidwhen doing a lease purchase? I would have to say yes......any in TX As for gov't backed, I did 2 the second one I assumed @ 5% for my personal home and left thier VA (veterans affairs) certificate in place. I don't think I would have a problem with any gov't insured loan. Shoot the VA loan I assumed was a washington mutual loan (I did do a formal assumption though) but had 4 yrs left on a 5 yr slo. Fannie may has here own L/O program now. Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted June 28, 2008 Yes, VA & FHA loans are fine in sub2 deals.No problems there. What I was referring to was the government grant-type loans.The stipulations and verbiage outlined in those documentsare super strict. For example, the borrow must live in the housefor a certain period of time. The ones I've came across, generally, isa minimum of 5 years. They keep a check on whether or notthe original borrower(s) is still residing in the home andthey'll call the loan due in a heart beat, should said property wereto be sold/rented, etc. etc. Share this post Link to post Share on other sites
-Tony- 0 Report post Posted June 28, 2008 gotcha, I would not mess with those either Share this post Link to post Share on other sites