Home Ownership Trends Are Shifting… Keep Reading To Find Out How They Might Make Owning A Home In Florida Even Easier…
The acquisition of a home has conventionally relied on credit scores as the determinant factor for mortgage eligibility, however, such methods of procuring a property are now in a decline when juxtaposed with past eras. The notion of the American Dream is undergoing a transformation, and while the desire for homeownership remains robust, it is adapting to changing circumstances.
Due to banks implementing stricter loan approval procedures and many Americans still recovering from the recession, along with any associated credit issues, numerous individuals are now resorting to alternative methods of buying a home.
… It may be plausible that a fraction of individuals are unable to secure loans due to a lack of creditworthiness, or it could be due to a loss of confidence in financial institutions following the economic downturn, or it could even be a result of discovering alternative means of acquiring property.
In recent years, there has been a significant surge in the number of people opting to rent apartments and houses. Additionally, renting-to-own a house, commonly referred to as a Lease Option, has gained popularity as an alternative method for families to purchase a house directly from a seller in the Florida area of FL. This process usually involves a rental period of 12-24 months, after which the buyer can purchase the property without having to go through the rigorous qualification process typically required by banks.
There are many pros and cons of rent to own housing in Florida FL, which we will outline in this article.
It is of utmost importance to meticulously scrutinize all of the particulars enumerated within any legal arrangement before signing, and should you find yourself faced with any ambiguities or intricacies throughout the process, do not hesitate to seek counsel from a qualified financial advisor or rent-to-own specialist.
Pros of Rent to Own Housing in Florida FL — Why It Can Be A Better Option
Easier Qualification
The largest hurdle to home ownership is usually qualifying for a loan for the house.
Since the recession, lenders have been progressively tightening their criteria for approving loans, particularly regarding income and assets. Unfortunately, with the current state of the economy, a considerable number of Americans are unable to fulfill these stringent requirements. In contrast, in a rent-to-own scenario, the seller has the autonomy to establish the criteria for contract approval, which tends to be more pragmatic than traditional banks.
Consequently, the upfront payment to enter the house is often lower, and the convoluted process of qualifying for a bank loan is avoided.
Time to Improve Your Credit
When you opt for a rent-to-own or lease option agreement to acquire a home, you typically get a window of 1 to 5 years to refurbish your credit score. This interval allows you to qualify for a mortgage loan to purchase the property at the conclusion of the contract.
During this period, you can reside in the prospective home while rebuilding your credit rating. Consequently, when the term ends, you can secure a conventional mortgage from a bank with your augmented credit score and saved down payment.
Cons of Rent to Own Housing – Some Drawbacks
Rent Can be More Costly
In a rent-to-own scenario prevalent in Florida and throughout FL, the seller has the liberty to impose higher monthly rental fees as it includes the provision for eventual home purchase. However, in case the buyer fails to secure the purchase at the term’s end, they would have expended more for residing in the property without the advantage of ownership.
Henceforth, it is of utmost importance that prospective lessees harbor a resolute intent to procure the dwelling in question by the contract’s conclusion, or else the conventional path of renting via established channels may prove more expedient.
Lease Cancellation
When contemplating a rent-to-own property, prospective buyers must exercise caution and consider the potential risks associated with lease termination, eviction, and other related factors. If a buyer fails to make timely payments or breaches the lease agreement in any manner, the right to purchase the property may be lost, resulting in the forfeiture of all fees and additional rent paid towards the eventual purchase.
It follows that those who are inclined towards a rent-to-own arrangement ought to approach it with the utmost dedication to mending their credit and working their way towards their ideal abode.
For many Florida FL residents who can’t get a traditional bank loan to buy a house, the Pros and Cons of Rent to Own Housing In Florida are clear cut.
If you don’t have the credit or don’t have a huge down payment… but want to experience the feeling of “ownership” while you work on purchasing that house… looking for great rent to own houses in Florida may be the preferable choice.
If you do not possess a complete dedication towards enhancing your financial condition, including your credit score and other related aspects, opting for a rent-to-own agreement may not be the most suitable course of action.
The concept of rent-to-own has gained immense traction among a plethora of individuals throughout the United States. With an exhaustive comprehension of the convoluted aspects intertwined in this process, one can effortlessly seize an opportunity to procure their dream dwelling, without being beholden to the onerous prerequisites imposed by traditional mortgage providers.
Have Questions On How Our Local Rent To Own Program Works?
If you have questions about the rent to own / lease option process works… we’re here for ya!
Just click the link below to see our available properties… or connect with us by calling us at (786) 904-1444 or through our contact page on this website.