Rent to Buy a Home with a Lease to Own option or just Rent the home.
Updated December 4, 2021Rent with Option to Buy a Home or just Rent the home. You pick the house! You're always in control. Either keep renting or buy it. It's up to you!
Program Features:- You can just rent a home for a year or you can rent to buy the property, just excersize the Lease to Own option at any time!
- You pick the house in an approved subdivision on our MLS websites. We don't pick the house, you do.
- The property must be in an area where the school ratings for the County school districts are over 50%, and a historically good appreciating area for residential properties, minimum amount of felons, and/or sex offenders in the area, other qualifications or subdivision HOA restrictions may also apply.
- You secure the home with a 2-month Security Deposit, based on the agreed upon rent and purchase price, (before our Investor purchases the property for you).
- You will know what your future rent and future purchase price will be before you commit to a 12 month rental and rent to own agreement, It you decide to purchase the property, you'll excersize the Lease with Option to Buy clause in the Agreement.
- You have to live somewhere, and all you're committing to do is to pay rent on the home you picked from MLS for the next 12 months.
- Our Investor purchases the home through Mid Florida Realty.
- While you're leasing the Home, you can build your credit and save some money for the future Down Payment and/or Closing Costs over the next 12 to 60 months. That money is in your bank account, Not the Investors until you purchase the property!
- Purchase at any time in the next 12 months to 60 months. You do have to give the Investor at least a 60 day notice that you intend to either leave or excersize you Lease with the Option to Buy. This benefits you because you're getting part of the property appreciation thats accruing on the property right now.
- Obviously, property Appreciation is dependent on you actually purchasing the property when you later exercise your Option to Buy the home.
- You can also later purchase the home using one of the Down Payment Assistance programs from either Florida First Time Homebuyer or Florida Down Payment Assistance
- FICI Credit scores and Conventional Special Financing guidelines may allow you to qualify for a Conventional Mortgage to obtain a 0% down payment option and use your 2- months Security Deposit for Closing Costs.
- New Homes may possibly be eligible for this program, depending on the Builders willingness to accept the State of Florida standard Real Estate Contract. However, new Construction Builders or Open Door (another Investor) are generally unlikely to agree to using a standard Florida Realtors Purchase Offer form, as the purchase mechanism. They want to use much more one sided Builders or Investor contract that favor the builder, not protect you or our Investor.
- Minimum middle FICO 5-4-2 score of 600 in the approved Florida Metro areas and 620 in Orlando.
- Debt to Income ratio maximum is generally 45%, (Including your rent, which is built into your Debt to Income ratio).
- Minimum Household verifiable income is $60,000 per year.
- Cannot be in an ONGOING Bankruptcy, but the Bankruptcy may have been Discharged in less than 2 years (Unlike a Government backed FHA, or Rural USDA loan, which both have 2 year waiting periods for any Bankruptcy that has been legally Discharged.).
- You can Purchase the house for the pre-agreed amount of money at any time during the 1-5 year lease period. Future annual Purchase price and Rent costs are established BEFORE you sign the first 1-year Lease with an Option to Buy.
- You can leave the home when the rental period is up and receive your 2 month security deposit back, (provided there is no damage to the property). The Security Deposit can also be used for your mortgage loan Closing Costs if you Exercise your Option to Buy within the allowed 5-year period.
- Monthly Lease with Option to Purchase prices are disclosed before signing the Lease and Option to Purchase agreements. There are No surprises, you are fully aware of what each years rent and purchase price would be in this very transparent process.
- You have up to 5 years to either rent/lease the property or exercise the Option to Purchase the property or leave property.
- Your refundable Security Deposit equals 2-months Rent, which you can use for your future Closing Costs when you are ready and able to purchase the property.
- No pressure for you the Buyer, there isn't a typical stressful Real Estate purchase Offer process you have to go through like the Investor does when they purchase the house for you with their "Cash" offer.
- The reason our Investor was sucessfull at aquiring the property is because Sellers and Listing Agents love Cash Offers and you nor the other prospective Buyers probably didn't have all 100% Cash either!
- You have the Option to either Rent the property from 1-5 years as well as a Right to Purchase, In this Program #1, there is absolutely no financial obligation to buy the home if you decide it’s not for you.
- You'll find that with this program, the monthly lease, property taxes plus Renters insurance is pretty close to the what the actual mortgage payment will eventually be once you opt to purchase the property. No surprises.
- Qualification criteria and all Lease and Purchase Costs are explained for each property before you commit to sign the (1) Lease and (2) Option to Purchase. Your approved purchase and lease costs will depend on how much you qualify to spend every month for a mortgage or Rent. The equation is very similar to qualifying for Mortgage Loan.
- The Monthly lease/rent payment is calculated for qualification purposes very similar, as if you were taking out a mortgage loan (with or without Down Payment Assistance).
- Most of the acceptable properties are currently in your local MLS for sale. Please contact Mid Florida Realty to set you up to receive Multiple Listings Service in your area and price range in Florida.
- You don't waste an incredible amount of time viewing house after house that you probably won't be able to purchase because you don't have a lot of "Cash" to gamble on the EMD / Earnest Money Deposit without Buyer important protections such as Financing, Appraisal and Inspection purchase Contract Contingencies.This is especially true if you are an FHA, USDA or VA Borrower. Since 2019 the housing supply (inventory of homes for sale) and supply / demand ratio has gotten progressively worse in the last 2-3 years with no end in sight.
- The Investor gives you the advantage of using their Cash to satisfy the Sellers exaggerated notion of "Cash is King"!
- The initial "Cash" Closing Costs are substantially less than a typical Mortgage Loan Closing Cost. Depending on the price of the house, we estimate Cash Closing Costs to be between $4000-$4500 and the Investors Closing Expense is rolled into your future purchase price because they had to spend the money to Close on the property when the Investor purchased the house. As you realize, you wouldn't be living in the house unless they paid the Closing costs.
- Time is on your side. You can Lease the Property for 1 up to 5 years and purchase it when you're ready. No pressure.
- The house is thoroughly inspected by a licensed Home Inspector prior to the Investor purchasing the property on your behalf.
- On behalf of the Investor, one of our Agents negotiates with Seller for repairs.
- Investor Program #1 already purchased the house you pick and you have the Option to Buy the house whenever you want in the next 5 years!
- Down Payment Assistance programs can be used to fund the final purchase if the Tenant/Borrower qualifies for one of DPA programs. Please see DPA options at:Florida First Time Homebuyer or Florida Down Payment Assistance
- Buyer/Tenant only has to have 2 months Rent as the Security Deposit + first month's rent about 3 weeks prior to Investor Closing. Security Deposit can be used whenever Buyer/Tenant decides to purchase the property.
- Buyer can close on property anytime within 5 years with a 60-Day+ notice to the Investor.
- It doesn't matter whether your an FHA, VA, Rural USDA Borrower, when it's time for you to Close, you already live at the Property!
- No stress there and you're not fighting other Buyers for the house you're already living in!
- You'll be working with a very experienced Realtor from Mid Florida Realty who's either a currently licensed Mortgage Loan Officer, or at one time was a Mortgage Loan Officer, or has been extensively trained in over 20 Down Payment Assistance programs, as well as this exceptional and very fair Buyer Rent to Own Program.
- Only available in certain large appreciating Metro areas, such as Hillsborough (Tampa Metro), Manatee (Bradenton, Parrish), Sarasota, Lee (Estero, Bonita Springs Ft Myers), Charlotte, Collier, Pasco (Land O' Lakes, Trinity, Lutz, Wesley Chapel) Polk (Lakeland), Orange (Orlando, Oseola, Winter Garden, Lake Leesburg, Tavares, Eustis, Minneola, Clermont), Seminole (Altamonte Springs, Sanford, Lake Mary, Oviedo, and Duval Counties (Jacksonville).
- Other Flood Zone, geographical or community restrictions may apply such as; Someone has to live at the premises for 1 full year prior to that person or Entity leasing the home.
- Non-Refundable Rental Application Fee once you agree to have your credit and background checked is $75.
- Lease to Own and Rent to Own Programs must be approved depending if there are are any HOA or CDD Restrictions.
TO GET STARTED