Hart 1 Report post Posted December 9, 2012 What do I need to know about FHA guidelines as they apply to lease option agreements? OK, so I get a seller under contract, then I find a tenant buyer who pays me the option fee, which is also my consulting fee. I keep the fee. In exchange for the fee, I assign to the buyer my interest and rights in the agreement I signed with the seller. Before the end of the option period, the buyer exercises his right to buy the property. The buyer has to get financing to buy the property. In order to get a bank loan, the buyer has to come up with a down payment. There is a whole set of do's and don'ts that apply here. And the exact rules vary according to which government guarantor we're dealing with. Problem: The buyer wants my consulting fee to count as part or all of the down payment, but the "down payment" was never paid to the seller. Question: As the investor who wants to not be sued and wants everyone to be happy, so that I'll get referrals down the road: What do I need to know? What do I need to do? What do I need to not do? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 9, 2012 If you're calling the t/b's money a "consulting fee", I can't imagine any lender would consider it as part of anyone's down payment. In fact, you can't guarantee any payment a t/b gives you as down payment money. How can you know what any lender will do? That's why the agreement specifically states the option money and the rent credits are a credit towards the purchase price. Share this post Link to post Share on other sites
