Why would anyone use a Lease to Own or Rent to Own program to buy a house?Last modified May 23, 2022
If you're a frustrated Homebuyer that can't get an accepted Offer because the Sellers are only accepting Contracts that don't have Financing or Appraisal Contingencies in the real estate contract, or someone that would like to buy a home, but needs to work on their credit for a year or two before the credit scores are high enough to qualify for a mortgage, or a 1st Time Home Buyer that doesn't have the equity from their first home to help buy their next home or someone who wants to move into a new area but they aren't sure whether their job is secure enough for a 30 year traditional mortgage.
- In 2021 approximately 28% of all purchases were transacted with Cash. If you have at least $50,000 in Cash, very good FICO 5-4-2 credit scores, and you are willing to exclude the Appraisal and Financing Contingency on the standard Florida Real Estate Contract, then you may be able to buy a home in this Sellers-market. However, if any of those 4 issues are not present in your financial and emotional profile, in today's market the chances of you being able to buy a home within 50 miles of a large Florida metro area are very slim to none. Unless of course, its property that no-one really wants. There is an alternative and that's our Rent to Own Option, more commonly known as Lease to Own option.
- The reasons for the need for excessive cash on Florida real estate Offer's in today's market is because on houses and properties that everyone wants, there are always Multiple Offers, and the Sellers are generally not accepting the offers that have either Financing Contingencies and/or Appraisal Contingencies because they are riskier for the Seller. Almost no offers that requests Closing Cost concessions will be accepted.
- The Florida Real Estate Appreciation rates for 2020 and 2021 combined has been 41%. Goldman Sachs has recently predicted the week of October 18th, 2021, that property appreciation rates will be an additional 16% for 2022. This means that the exact same home that sells for $300,000 on January 1st, 2022, will sell at a price later that year of about $348,000 on December 31, 2022. That means the property will have risen $48,000 (which was 16%) , in twelve months to a projected sales price of $348,000.
- Since 2011 Florida Home prices have risen through appreciation 110.39%. The Florida properties will continue to appreciate. If you don't have a lot of money right now to pay at least 20% Down + 3% in Closing Costs (You'll need all that money in some form including Down Payment Assistance) you may never be able to purchase a home in Florida because the prices will continue to appreciate. You can do the math yourself and you'll really begin to understand the problem.
- Many people who could have purchased a home last year, can no longer qualify for a mortgage to buy a home today or in the future unless they use some sort of Lease to Buy program. If they wait any longer, they may not be able to purchase a home this year and that also means next year.
- If you want to gain equity through Appreciation tomorrow, you'll have to buy a house in the very near future. To gain equity and make money on your home, you have to either purchase the property outright or Lease to Own the property. Those are your options for making money on your home. The sooner you do it, the more money you will make. If you wait too long, you may not qualify for the Rent to Own program, much less a Bank mortgage loan.
- If you don't take advantage of our Rent to Own Program, you won't be able to lock your 2021 price into the program. By the end of this year, you may not even be able to qualify for a Rent to Own property that you really want to call your own. Unfortunately, that's just what the facts are in today's real estate market. If your savings are limited, you are beginning to run out of options for Homeownership.
We can explain in greater detail, just CONTACT US. We will give you solutions! We look forward to hearing from you, even if you're a 1st Time Homebuyer!