Have You Considered A Lease To Move Up?

In Metro Atlanta, home prices are at record lows.  Many homeowners are missing the boat on buying these deals because it would be difficult to qualify for a new mortgage when they currently have a mortgage.  They cannot sell their home outright because the home is upside down, meaning they owe more than the home is worth.  If they sell via short sale, they will have to wait a few years to buy again (there is an exception, but it is rare).

I was inspired to write this post because of a client I recently had the pleasure of working with.  When they contacted me they said they had been looking for a year at moving to a larger home and they were at the point of seriously pursuing that endeveour.  They were looking at high end properties, and of course there were some great deals to be had.  Homes that had sold for a million or more five years ago were selling for much less than half that amount!  As I counseled them on some strategies they could pursue, they talked with a couple mortgage professionals and made a decision that they would lease their current home and look for a lease purchase.

Rentals are a hot commodity in Metro Atlanta and their current home was in great condition, so there was no problem getting a good tenant.  They were pretty much able to cover their current mortgage with the tenant they acquired.  They were also able to find a larger home to lease.

Some people may think this is not really moving up, but it is about the end goal this couple is pursuing.  Of course they want to own, and they do as they already have one investment property.  They feel that their current home would be just one more investment property, rather than short sale.  As long as they can show rental income on their income tax return, they can qualify for a larger mortgage.

The example these clients set is where there is a will there is a way!  Sometimes it is just an unconventional way.

I know, I know, this will not work for everyone, but it may be something to consider for some. I strongly suggest that if you think this is an option for you, talk with a few mortgage professionals. You many need one who thinks outside the box.

Feel free to call me if you need a referral or if you have any questions.