Hello,
I need some information regarding a lease option. I have tenants in a home in a lease option for almost a year now and they have been the perfect tenants, always paid on time and kept up with the house like it was their.
They wanted to go through with the option on the agreed price of $140k but they can only get approved for $110k. Their option agreement would give them back $5,500. Their rent is currently $1200.
How can I help them purchase the home without sacrificing the sale price? Can I finance them the difference on a 15 years note payable in full in 5 years? is this legal? I still have a mortgage on the home.
In doing some calculation, their primary mortgage should be roughly $600, if I add T&I, it would bring it to $900. Based on their rent history, they have an extra $300 they could use the financing the reminder balance.
What document would I need to use ?
Any thoughts or suggestions?
Thank you