What is the name of your state? FL
We are purchasing a house and the owner is willing to owner finance up to 12 years. We are signing a Contract to Purchase as well as a Lease agreement. In the contract it states the closing will be Jan. 1, 2017 with an addendum to close early with 30 days written notice with no penalties. In the lease it states "For purposes of this Agreement, rent shall include monthly rent, late fees, penalties, unpaid utility or other charges and real estate taxes and insurance." Our lease amount is based on a 45 year schedule at 8.875 interest. Since most of our lease payments will be interest at first, will we still beable to write off the interest on our taxes since this is owner financing?
I'm sorry if I posted this question here if it doesn't belong here, but was unsure where to post. We realize the interest is high, but need to work on paying down some debt before we are able to get a conventional mortgage with lower interest. With Florida realestate rising like it is, it is our chance to lock in to todays prices.
Thanks in advance for any advice.
We are purchasing a house and the owner is willing to owner finance up to 12 years. We are signing a Contract to Purchase as well as a Lease agreement. In the contract it states the closing will be Jan. 1, 2017 with an addendum to close early with 30 days written notice with no penalties. In the lease it states "For purposes of this Agreement, rent shall include monthly rent, late fees, penalties, unpaid utility or other charges and real estate taxes and insurance." Our lease amount is based on a 45 year schedule at 8.875 interest. Since most of our lease payments will be interest at first, will we still beable to write off the interest on our taxes since this is owner financing?
I'm sorry if I posted this question here if it doesn't belong here, but was unsure where to post. We realize the interest is high, but need to work on paying down some debt before we are able to get a conventional mortgage with lower interest. With Florida realestate rising like it is, it is our chance to lock in to todays prices.
Thanks in advance for any advice.