To make the choice of rent to own mobile homes is one of the best ways to become the homeowner you and your family have dreamt of being, without a financial drawback.
What is Rent to Own Mobile Homes?
Rent to own mobile homes are those that are currently available for rent. But, a rent-to-own lease option includes buying or a possibility that you must purchase the property after passing a certain time.
Mostly, this option of “rent to own” is a clever method to build up your credit score, simultaneously saving for a down payment. This is feasible for those people who can’t afford the average down payment.
How to Find Rent to Own Mobile Homes?
Finding one is not easy since the listings are not common. The reason behind this is that they typically occur in certain circumstances. If you have come across a rent to own mobile manufactured homes for sale, you need to act fast.
In general, if mobile homes are on the market for some time, the owner may list them as rent to own.
Yet again, if a long-term tenant expresses interest in the purchase, the owner may agree to sell it as a rent-to-own mobile home.
How To Get The Paperwork Done?
First, a formal agreement is necessary between the owner and the renter/buyer. Additionally, terms, fees, payment and other details need to be figured out.
Agreements
There are 2 kinds of legal agreements that are drawn and signed by both parties regarding the rent to own agreement.
Lease Along with Purchase Option
The first agreement is a lease agreement with an option to purchase. This contract gives the tenant or renter his right to buy the house, but it is not an obligation. Therefore, by the time lease ends, you can decide not want to buy back the mobile house.
Purchase Agreement with Lease
The lease agreement is signed with a purchase agreement. In this agreement, you are legally required to buy the rent out a mobile home as you signed with the rent to own contract.
Moreover, with this contract, you must ensure that there is a third-party inspection to steer clear of any surprises. Try getting a pre-approval for mortgage to know that you can qualify for one.
Set Price For Purchase
It is necessary to know the exact purchase price upfront of the rent-to-own mobile home. You should research on your own to know what the mobile homes or manufactured homes are going for in the market of your area.
Rental Period
Mostly, the standard rent time is 3 years. However, you can decide the length of the rental portion as a tenant.
You should give yourself adequate time to get the finances in order.
Maintenance
Because this is a rent to own mobile homes scenario, maintenance needs proper setting. When renting a manufactured home, maintenance issues are not the tenant’s responsibility, but after purchase, it is your duty. With rent to own mobile homes, the actual owner is responsible for maintenance.
Applying for a Mortgage
Lastly, once the rental period is near closure, you have to apply for a mortgage or find financing. Luckily, applying for a mortgage or financing is straightforward. You will work with lenders in the area that finance manufactured homes. Reddoor Funding provides loan solutions for people living in or near Dallas Texas, Austin, San Antonio. Call us at 832 539 1099 for more.