If you are looking for a local Rent-To-Own home but you are curious to see how it works and if it’s a good fit for you and your family?
Read this article and learn what you need to know about Palm Beach Florida Rent-To-Own homes.
Rent-to-own or lease-to-own as it is also commonly known as is a good option for both the seller and the tenant-buyer, but is it always the best method to get into a great home in a nice neighborhood?
For sellers who are not able to sell their home now or would-be home buyers who want to buy a house but are not able to purchase right now because of a few credit challenges, it is an option to consider.
A family can get into a good home in a great neighborhood and experience the sense of ownership sooner than they expected.
Before you commit to any home, it is essential to ask the local Palm Beach Florida Rent To Own Homes Co. these questions…
“How long do I have the option to buy the home?”
A Rent-To-Own agreement is made up of two parts. The first part is a regular rental agreement. The second part is the option to purchase the home at an agreed predetermined price by a specific date. That opportunity to buy is not perpetual it has an expiration date of usually 2 years.
That time is necessary because it takes time to improve your credit score. Anything less would mean that you may not have time to repair your credit entirely and therefore not be able to qualify for a new mortgage to buy the home. Clearly the longer the time that is given to the buyer to exercise the option that is an advantage for the buyer.
That desire to have a more extended period to improve your credit must be balanced with the time the seller is willing to wait to complete the sale of the house.
“What is the total proportion of the rent that will put towards the purchase price of the home?”
The internet has horror stories recounting tenant-buyers who were deceived into believing that they were contributing a more substantial portion of the rent towards the purchase price. The best way to protect yourself is to have all the things that are important to you put in writing in the rental and the option agreements.
There has been a recent change in federal law making providing down payment credits from the monthly rents complicated, and in some states, it may be considered illegal.
Usually, the monthly rent on a rent-to-own house in Palm Beach Fl is customarily slightly higher than the monthly rent of a home that is not being sold rent-to-own.
This is because you are paying for the option to purchase that home. That slightly higher rent is to compensate the seller who has their property tied up until you can buy the house.
It is prudent to ask the seller if any portion of the rent goes toward the purchase price of the home. If so get it in writing exactly how much of the lease is contributed to the purchase price when you decide to exercise your option to buy the home.
“In any agreement, you need to know who is responsible for repairs and damages on the property?”
It is the tenant’s responsibility for everyday maintenance and minor repairs. The agreement should say what items are considered minor repairs and who is responsible for any items that may need to be replaced.
If the repairs are costlier and it is not the fault of the tenant-buyer the seller/landlord is then required to repair or replace that damaged item usually the cost that exceeds a few hundred dollars is the benchmark. Remember, each seller has different requirements, check with the specific seller what their expectations are and get everything in writing.
When you choose to work with our rent to own program in Palm Beach Florida, we will explain everything to you.
“Can I extend the time in the option if I need to?”
For tenant-buyers who have decided to work with us, they will find that we are generally flexible with the time needed to improve their credit. Our flexibility is not unlimited or automatic; it is essential that you have been following the recommendations of the mortgage and credit professionals consistently and not creating problems with neighbors or damaging the house unnecessarily.
If you have decided to work with another landlord/seller instead then ask those questions up front and make sure that any agreement that you come to is documented in writing.
“My credit score is horrible what do I need to do to find a rent to own homes?”
Most reputable Rent-To-Own homes companies in Palm Beach Fl, like PalmBeachRentToOwnHomes.com, will share with you resources to guide you to improve your credit score and if you qualify down payment assistance. Some of these resources may require a nominal payment, do not let that discourage you. Your goal should be to own your own home for you and your family We as a company must protect our investment, so we limit the tenant-buyers we are willing to work with.
We choose to work with people who are highly motivated committed and ready to do all that is necessary to improve their credit and ultimately buying the home. You must have the ability to pay the rent on time, and after getting pre-qualified, you will have shown to have a good chance to qualify to purchase the home at or before the end of the agreement.
“The final question you should have answered….”
“Are there any objections to me taking the agreement to my attorney for review?”
When you work with us, you always have the option to take the agreement to your attorney. Should you work with another Rent-To-Own company and if they, resist your attorney reviewing the deal it may be better to not enter into a Rent-To-Own-agreement with them. Additionally, you should have any other promises made to you be put in writing and incorporated into the agreement.
The customary Rent-To-Own agreement has several clauses that are important, and you should take the time to understand them before you sign. All reputable companies that offer Rent-To-Own will take the time to review the agreement with you. If you are feeling hurried, or forced to sign, NOW; that is the best signal you should be willing to simply walk away.
So, What’s Next? One of the best things to do first is to get pre-qualified.
That way you know where you are regarding your credit and what price range house you are able to qualify for in 12- 24 months in Palm Beach Florida
These 6 tips will give you valuable insight to see which sellers are legit and which ones to stay clear of.
It sometimes seems like it is more difficult to find the reputable companies, but you are now armed with great information to cast a discerning eye on the characters you meet in this process. The search is worth it because a great rent to own seller will help you and your family finally get out of the rat race of renting to moving into your own home. That journey will be worth it.
You can start your least to own home search START HERE!
Simply fill out the short form on that page and start your search to see what we currently have available.
Our rent to own houses in Palm Beach Florida, all go very quickly. So, if you have decided that you are now ready, and you are willing to follow the instructions of the professionals to become credit worth, then proceed to add your email address to this list and become a qualified VIP rent to own buyer.
Also, if you’d rather chat with someone about our program or about your situation… call us anytime at 561-771-4347 or shoot us an email through our Contact Page.
We’re here for you and we look forward to working with you 🙂