Can all the rent paid in a lease purchase be credited toward the down payment?
August 28th, 2008 By Peter G. Miller
If the purchase is being financing by a commercial lender, the lender will want to know the fair market rental for the property. Anything above the fair market rental can be considered a credit toward the purchase, anything below a fair market rental represents a discounted sale price. A lower price, in turn, means the lender will not provide as much financing as buyer and seller may have wanted.
Speak with lenders for details, including but not limited to any requirement by the owner to escrow money toward the purchase price.
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