Should You Rent To Own a home in Stuart FL?
If you have been wanting to buy a home in Stuart FL but the large down payments and the new strict lending policies have been keeping you from qualifying for a mortgage, then perhaps you should consider a rent to own option in Stuart FL. A rent to own option is great for first time homebuyers who don’t have the equity from the sale of a home to put down on another home.
Here are some tips to using the rent to own option of buying a home in Stuart FL.
Find a seller who is willing to offer a rent to own option. Market conditions are a key factor in finding someone who is willing to offer a lease-option deal. Ask the home seller if you could apply the rent towards the purchase of the house. This will help you save money for the down payment of that Stuart FL home and give you time to strengthen your credit if need be. If you find a seller that has been having a hard time selling their home, they may consider this option as it benefits them as well. This is how it works:
• You (the renter) agree to rent the house for a pre-determined timeframe
• You may be required to pay an upfront consideration fee
• You may be required to pay a higher monthly rent
• A portion of your monthly rent will go into a fund that will be used later as a down payment
• You will usually be able to lock in the price of the home at the onset of the deal with the option to purchase the home at that price on or before the lease is up
There are many benefits of a lease with option to buy; however, there are many risks as well. For example: if the option to purchase is not exercised, you will forfeit all of the money you have invested.
If you decide to pursue a lease with option to buy a home deal, you should consult a real estate attorney to make recommendations and to thoroughly review the contracts to ensure financial protection and security. A lease-option makes good sense, especially for first time homebuyers. A lease-option will help you reach your dream of home ownership more quickly than having to follow traditional methods of obtaining a conventional loan.
Talk to a Florida realtor about helping you find a seller that is willing to offer a lease-option home in Stuart FL. A Florida realtor has extensive knowledge and will be more than happy to help you through the entire process every step of the way. The next thing you know you will be relaxing in your new home in Stuart FL!
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About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida. Millie is Vice President of Bold Real Estate Group located in Stuart FL, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties. Millie is fluent in English and Spanish with a strong network of real estate professionals worldwide. Other post by Millie Gil