Home Ownership Trends Are Shifting… Keep Reading To Find Out How They Might Make Owning A Home In Florida Even Easier…
In the past, mortgages based on credit scores were the prevailing means of procuring a home. However, these conventional approaches to homeownership are declining in prevalence compared to previous decades. 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.
… perhaps because they don’t have the credit, maybe because they don’t trust banks anymore, or even because they are learning that there are other ways to buy.
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.
Make sure to carefully review all the specifics outlined in any contractual agreement before appending your signature, and seek guidance from a financial advisor or rent-to-own specialist should you encounter any uncertainties or complexities during the proceedings.
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.
Therefore, it is imperative that potential renters are committed to purchasing the house by the agreement’s conclusion, or else renting through conventional rental avenues would be more practical.
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.
Therefore, individuals interested in pursuing a rent-to-own agreement should approach the opportunity with a serious commitment to improving their credit and earning their way into their dream home.
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.
Rent-to-own has garnered significant appeal among numerous individuals in the United States. By gaining a thorough understanding of the intricacies involved, one can avail themselves of a favorable prospect to purchase their ideal abode, without having to fulfill the frequently impractical prerequisites mandated by conventional 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.