A little more than halfway into 2009 and it’s still a tough situation for buyers and sellers. The former is having trouble finding prospects while the latter can’t secure a Northeast Florida real estate mortgage due to stricter lending criteria. It’s this scenario that has given way to an increased demand for rent to own properties, also known as lease options.
For the most part, lease options circumvent one of the biggest hurdles in owning a home which is the mortgage. Instead, buyers improve their credit and build up their down payment while sort of “testing out” the place they may or may not call home. This arrangement usually means that buyers pay the homeowner the standard rent as well as the fees associated with the purchase price for the home.
It’s recommended that your arrangement with a homeowner is in writing but also know that whatever money you pay towards the rent and/or home is lost should you choose not to remain in the home or if you get evicted due to failure to make payments. However a lease option could be the way to homeownership for first time Northeast Florida real estate buyers without a solid credit foundation.
Filed under: Uncategorized | Tagged: Jacksonville real estate, Northeast Florida real estate, renting to own
