Rent to own a house is also called lease to own house (or a whole slew of other phrases… like “lease option”, etc.).
So how does rent to own homes work in Mesa and other parts of AZ?
How Does Rent To Own Homes Work?: The Agreement W
It is kind of similar to a car lease.
In this distinctive housing arrangement, prospective buyers rent a home from the property owner, making monthly rental payments while living there. After a set period, usually about three years, the renter has the option to purchase the home at a price agreed upon at the start of the rent-to-own agreement.
In some instances, a portion of the monthly rent paid to the owner may count towards the down payment of the home, subject to local regulations. However, it’s important to note that allocating a portion of the rent towards the purchase price may now be prohibited by law due to the enactment of the Dodd Frank Law by Congress.
The Rent To Own Contract Agreement – How It Works Here In Mesa
When finalizing a contract in Mesa, clarity is key. It’s crucial to fully grasp all terms before putting pen to paper. Do not hesitate to seek clarification from the seller by asking questions until you are completely informed.
This agreement brings advantages to both sellers and buyers in Mesa, AZ, [market_zip], offering significant benefits. Understanding the advantages and disadvantages is vital to making a well-informed decision that aligns with your needs and preferences. Reach out to Xero Home Buyers LLC at 205-259-7529 for tailored assistance.
The Financial Parts Of The Rent To Own Agreement in Mesa
First, the seller has to set the purchase price and monthly rent for the house.
The Monthly Rent
Embarking on a rent-to-own or lease option agreement requires establishing a purchase price aligned with the market value of the property in Mesa. Additionally, the monthly rent may exceed the average rental rate for a house in the vicinity.
Why?
When you engage in a rent-to-own contract, you are locking in the exclusive opportunity to buy the property at the end of the agreement. This setup not only grants you the choice to purchase the house but also protects it from being leased or sold to other individuals throughout this period.
The Purchase Price
The agreed and signed price and rent is settled and locked during the entire rental period of time, which is usually between one and three years.
The agreed price in Mesa remains fixed regardless of market fluctuations, offering a unique advantage to buyers in Mesa exploring a rent-to-own opportunity. Opting for this choice enables you to secure a property at the current price without the commitment to buy for another 1 – 3 years, protecting you from any possible price hikes during this timeframe.
The Option Fee/Upfront Payment
In Mesa, buyers generally pay an option fee to the seller when entering a real estate agreement. This fee, usually between 1% and 5% of the home’s total price, is paid upfront before moving into the property. The exact amount can vary depending on the seller and the property, but this initial payment is typically non-refundable if the buyer decides not to proceed with the purchase by the end of the agreement.
This option of buying a house in Mesa with a rent to own agreement is very good for buyers who would otherwise be unable to purchase a house or whose credit score wouldn’t meet the required threshold for a mortgage.
Looking to sell your property in Mesa, AZ? Rent-to-own agreements can expand your potential buyer base, allowing you to assist more individuals in finding their dream homes.
Are you a buyer in search of homeownership in Mesa, AZ? A rent-to-own option enables you to progress towards owning a home and experience the pride of homeownership firsthand.
The End Of The Rent To Own Agreement… What Happens?
Considering a rent-to-own home in Mesa, AL? The goal is to use the rental period to boost your credit and financial stability, paving the way for a traditional home loan from a bank.
During this time, it’s crucial to work on boosting your credit score, saving money, and collaborating with a mortgage broker or bank in Mesa to secure pre-approval before the rent-to-own agreement concludes.
At the end of the rental period, you, as the tenant/buyer, can choose to purchase the property at the previously agreed-upon price or decide not to proceed, much like a typical rental situation.
If you decide not to purchase the property, no worries. You can move on to another home, or in special circumstances, you might renegotiate the rent-to-own agreement to allow more time to qualify for a bank loan to buy the house.
With our local Mesa Rent To Own Program, our ultimate goal is to assist you in achieving homeownership in Mesa. We offer flexibility, allowing you additional time if needed to finalize your finances and secure a successful house closing.
Just like in any other way of buying a house in Mesa, there are mutual pros and cons for both the buyer and seller.
So just do your research… keep browsing this website and check out our Frequently Asked Questions page… or give us a call anytime at 205-259-7529 or shoot us an email on our Contact page to chat with us and our local rent to own program.
Sell my house in Mesa Arizona.
Are you still searching for the ideal rent-to-own home in Mesa? If not, subscribe to our Early Property Alert List below to receive prompt email notifications whenever new rent-to-own opportunities arise in the Mesa, AZ area. By subscribing, you’ll stay ahead of the market and have the advantage of early access to the best properties available. Don’t miss out on your chance to find the perfect home—sign up today and start your journey towards homeownership in Mesa.
