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Your Rent To Own Options

By Tabitha Naylor

It doesn't matter whether you refer to it as lease-purchase, lease-option or rent-to-own option, they are all the same prolonged approach to acquiring a property in Florida. How safe this alternative strategy to buying a home is will depend on the amount of due diligence and care that you provide before you agree to a contract. If you don't understand terms about the contract or you are not comfortable with signing a contract due to information it entails, you should talk with an attorney.

The Lease And The Rent-To-Own Contract

A rent-to-own home purchase is basically just a lease on a home that gives you the option of purchasing the home within a certain time frame, usually anywhere from three to five years. In Florida, rent-to-own plans may be structured to provide both parties with great benefits. However, they may also be structured so only one of the parties is benefiting and the other is not. This is the reason that buyers need to be very knowledgeable since they know less about market trends than the seller, and the seller is who will usually provide you with the contract.

Installment Land Contracts Or Contract For Deed

A contract for deed is generally used as a type of owner financing for real estate in Florida. The buyer and the owner will enter into a contract where the owner agrees that they will give the deed to the buyer, shortly after the buyer has paid them a specific amount of money. Essentially, you could think of the contract for deed as some type of sales contract. These deeds are a situation that can be worked out between buyer and seller when they are wishing to acquire Florida real estate, but are not able to come up with the required down payment.

Seller Or Owner Financing

Owner financing essentially means that the individual that is selling the property will agree to take payment on the property over a certain duration of time. This means that if you are purchasing real estate in Florida and you pay $2,000 each month for 20 years, this would be an example of owner financing. These arrangements are usually made through a contract, meaning that the details are subject to change depending on the situation with each transaction. Owner financing is one of the last resort rent-to-own home options that buyers should go for due to the disadvantages on the buyers part.

The FHA Loan Alternative

If you are truly set on purchasing real estate in Florida, you might be able to get an FHA loan. These loans do not require a lot of cash in order to close the loan, which is much more flexible for those families that are in need of moving or owning their own home. The cost of the loan insurance is usually included in the monthly payment of the home-owners and is used to fund the FHA operation. Whether or not you are eligible and the amount of money that you get from the loan will depend on where you reside, therefore if you are moving to Florida you need to make sure that you check out the Florida guidelines for the FHA loan.

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