Rent to own has many names it is also called lease to own home (or a whole slew of other expressions, like “lease option,” rent with an option to buy and so on).
So how does rent to own homes operate in Boca Raton and other parts of Florida
Are You Curious About How A Rent To Own Home Agreement Works?
It is sort of just like an automobile lease.
In this kind of arrangement, the renter leases a house from the owner of the house and pays month-to-month rental fees for residing in the home. After an agreed amount of time, generally 1-3 years approximately, the tenant-buyer can choose to acquire the house at a price that the tenant and the seller of the home decided when the original rent to own lease agreement was signed at the beginning of the arrangement.
Of the monthly rent paid to the owner, a portion can sometimes go to the downpayment of the house depending on the regional laws and guidelines. But you must be careful applying part of the monthly rent to the purchase price is now not often acceptable since the legislation passed by Congress called the Dodd-Frank Law.
The Rent To Own Agreement Contract – How It Works Here In Boca Raton Fl
The agreement the buyer and seller draw up ought to be clear. You should understand the terms of the agreement before signing it. Make sure you ask the seller if you’re not clear about anything.
This arrangement has got benefits for both sellers and buyers alike. So, take time to read and understand both the advantages and disadvantages so you can make a thoughtful choice for you and your family.
The Financial Components Of The Rent To Own Arrangement
Initially, the seller has to set the purchase price and monthly lease for the house.
The Regular Monthly Rent
The purchase price is typically retail worth for the house in today’s market. The monthly lease is usually a bit more with a rent to own/ lease than if you were to just rent a house generally.
Since you’re paying for the option to acquire that home at the end of the contract and you’re locking that home down so others cannot purchase or lease it throughout the entire time of the contract.
The Purchase Price
The agreement with includes the purchase price the monthly rental and the terms of the option is locked in writing and it states the length total time of the contract. The time of the lease is usually for a period of 1-3 years
The agreed price does not change throughout the agreement in Boca Raton, whether they rise or fall. That’s one of the significant advantages of purchasing a home here in Boca Raton with a rent to own. You can rent to own your home and freeze the price at the market price at the time of the agreement. You will not have to buy the house for 1 – 3 years, and the purchase price will not go up over those years.
The Option Fee/ Upfront Payment
There is a cost that the purchaser pays for the option to buy the property at the end of the lease. It is due and payable before the tenant/buyer moves into the home and it is nonrefundable. The price paid for this option is based on the value of the house the neighborhood it is in and the competition from other buyers who desire to rent to own that house. As a rule, it is typically 1-5% of the total purchase price of the house.
This choice of purchasing a home in Boca Raton with a rent to own contract is very good for purchasers who would otherwise be unable to buy a home or whose credit score wouldn’t meet the needed threshold for a mortgage.
For sellers like us, the rent to own opens the potential “pool of purchasers” so we can help more people enter into terrific homes.
For purchasers, it lets you pursue home ownership and have that sense of pride you feel when you own a home.
The End Of The Rent To Own Contract … Exactly What Takes place?
Of course, the idea of entering into a rent to own home in Boca Raton Florida is that you have time to improve your credit and save a more substantial down payment to make obtaining a new more mortgage more likely.
So, during that whole period … you must be truly working to enhance your credit, conserve money, and work with a local Boca Raton mortgage loan broker or bank to get pre-qualified PRIOR TO the end of the rent to own arrangement.
At the end of the lease to own agreement, you as the tenant/ purchaser have the choice to buy the house at the agreed price or just to walk away. The seller is obligated to sell you the house at the agreed price if you choose. In other words, the seller is obligated you have the choice to say yeah or nay.
If you pick not to purchase the house, no biggie at all. You can vacate the house and move to another home. If you need more time, many sellers will work with you but not all, and there is no obligation for them to have to give you more time.
With our Boca Raton Rent To Own Program, our ultimate objective is to help you reach your goal of home ownership.
Much like in any other method of buying a home in Boca Raton, there are many advantages and disadvantages that both parties need to consider.
So just do your research … keep browsing this website and inspect out our Frequently Asked Questions page … or call anytime at 561-771-4347 or shoot us an email on our Contact page to talk with us and our [market] rent to own program.
Last … have you discovered the Boca Raton rent to own house that’s ideal for you yet? If not, join our Early Residential or commercial property Alert List listed below to get e-mail signals quickly when we have new rent to own homes in the Boca Raton Florida location offered.