By Adrian from Lease2Purchase.com Chat Board

Q: (by Adrian)

I'm trying to find a lease to own property with the option of no mooney down to get in. I've seen some lease to own properties and programs but all seem to require a 3-5% deposit. Does a no money down option exist? and how would I go about finding one?

A1: (by Alan)

You will need to find a very motivated seller who will accept you just moving into his house with no money down. What happens if you decide not to elect the option to buy after one year? (assuming it is a one year lease with option)

The owner ends up renting the home to you when he really prefers to sell the home to you. With the 3% -5% down, at least he's got your option consideration to keep if you should walk out the door after the lease is over.

A2: (by steve55121)

That's correct, most lease options are going to require a down payment. Most of the time this money is the cushion money the investor will use to make the current mortgage current. This is the case when you are looking to lease option a house.

But......

Being an investor, I hardly ever give a dime to the actual owner at conception of the deal. I make my money from the tenant buyer who wants to move into my new investment property.

A3: (by Irina)

That’s right, most lease-to-own deals require some amount to be paid up front. Remember, though, that everything is negotiable. In some cases the owner may agree to reduce (waive) initial deposit (usually called option fee or option consideration fee) in favor of higher monthly payments. This approach coupled with a reasonable rent credit often provides win-win situation. In yet other cases you can still call it an option fee, but split in several installments payable over some period of time.

Bottom line – it is very difficult to find a clear "no down" deal, however, almost every real situation can be "adjusted" – just be creative!

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By SLV from CA on 11/07/05

Not enough information.

By Phil Bonhag from Reno, NV on 07/30/06

very helpful basic info

By valerio pettenuzzo from sault ste.marie ont.canada on 09/25/07

thanx,all info helpful to ancient investor.

By Autumn Whisler from Reno, NV on 11/20/07

5 = best

By George from Brooklyn, New York on 10/30/08

Makes sense & helpful