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Lease/option a good way to go for me?

I will be a full time medical student moving to the West (AZ) starting in August. I have excellent credit (737) and a good amount of savings. I can't qulaify for financing the conventional way because although I am working and have been doing so for 6.5 yrs. in the same field at the same place, I will not have verifiable employment upon arrival to AZ. Many lenders ask how I am going to pay my mortgage and I simply answer.. the same way I would pay my rent. Seeing especially now it would be around the same amount. I would REALLY like to take advantage of this buyer's market. I am not looking to buy something extroadinarily expensive ($100-150s). Really want a 3bed/2.5-3 bath condo or house!!!I have come across "lease/option" ... would this be a good way to go? What are some alternative financing approaches that could be taken in a "lease-option" agreement? Does streamline refinancing work? Please share your knowledge/advice!! Thank you so much in advance!

Public Comments

1. Not sure about lease w/option...But I know there are loans especially for medical students ..The payment get higher over the years when your income is expected to increase...Just incase your lender didnt tell you....good luck!!
2. Lease/option would be a possible way to go while building a local job history, but make sure the option period is at least two years so you have enough time to build the required history. This will also let you lock in the price at today's prices which could be much lower than the price when you exercise the option in a couple of years. A lease/option may be a little higher than market price because they are providing special financing for you (especially if it is an investor). If you find a seller having a hard time selling, you may be able to talk them into a lease option instead of a regular sale, and then you can get better terms than an investor-backed lease/option. Another possibility is to look for seller financed deals. Usually a seller will finance with a higher interest rate than the bank because they don't have to compete with banks. Again, if you find a hard-up seller you can negotiate the terms. There may be sellers who didn't even think of financing a sale themselves, but if you make an offer they might like the idea.
3. Yes! a lease option is exactly the right proposition for someone in your shoes because you KNOW that once you can show verifiable employment you CAN GET FINANCED. It's those who THINK that they can clear up their credit issues during the lease term that are running a risk. But if you do, I recommend you treat the entire contract like an out right purchase full with a home inspection and a request for repairs before signing on the bottom line. Stream line refinancing doesn't apply here because a lease option doesn't require financing of any kind during the lease term.