When it comes to investment, people often go for mutual funds, buying stock. Hoarding gold bars, or investing money in a fixed deposit. However, there is another way that is more reliable and ensures to multiply your wealth within a few years, it is investing in a real estate property via Rent to own Jacksonville FL program or through a mortgage.
Hold on! The value of the property is subject to the economic condition of any state, it goes up and down, but having a reliable realtor by your side can save your money by selling it at the right time. So, if you are a rentee and confused about whether to put your money in real estate or not or if yes, then what is the reliable way to do so? then you have come to the right place.
Here in this article, we have discussed the 5 most important points that every rentee should know if they are planning to buy their own house.
5 Important Things About Rent To Own Jacksonville FL Program
1. Buyer With Bad Credit Score Can Still Buy The House
The most important thing about rent-to-own programs is, it requires no hefty deposit or unlike mortgage program, there is no strict scrutinization procedure involved. This program is often hosted by the state governments and the aim of these programs is to empower the rentee to own a house. However, there is another list of creteria which you have to fulfill e.g. a program offered by Dream America that requires a 50% debt to income ratio, minimum 500 plus credit score, and most importantly a 12-month record of paying timely rent. This means, if you have a bad credit score, as in less than 700 then you can apply for the rent-to-own program, which mortgages don’t offer.
2. Lock-In Purchase Price
Another best thing about the rent to own program is the buyer can lock the price-in with the landlord. This is beneficial for those buyers who are about to purchase a house in an area where home prices fluctuate often and in predicted to increase significantly. And lock-in will prevent the rent credit from fluctuating. Apart from this, you also need to that property prices might decrease too as a result of economic conditions or recession. hence, it is recommended that you opt for a price lock-in contract after consulting the realtors.
3. Test It Before You Buy It
When you are renting an apartment or a house. You always dream of having a dream house to live in with your future family. But, what it will look like and where you should live is uncertain. Sometimes, people buy a house and then realize that this is not the one they wanted, however, because of the mortage contract they can’t leave it. Unlike this, buying a house via rent to own program offer more liberty to the buy in the form of contracts i.e. rent to purchase, where rentee is obliged to buy, and rent to option, this gives liberty to the buyer to opt-out of the agreement. Hence, you can test try the house, live in it, and decide whether the house resonates with you or not. If not then by the time the contract end, take your rent to credit and invest in another contract.
4. Lessen The Need Of Moving
The worst nightmare of any rentee is being kicked out by the landlord overnight either the music was too loud or we simply missed paying the rent on time. To lessen the possibility of this happening, it remain recommended that you enter into a contract that is for two to three years. And,
nothing can beat the Rent to own Jacksonville FL program. Wondering why? Because it consists of a lease period. During this, the landlord cannot evacuate the rentee without having a court notice or breaching the contract. Hence, it lowers the possibility of moving out.
At the same time, there is an added benefit too. Rentee can become a prospect buyer, once the contract is over. You’ll be saving up a hefty amount of money, using it to pay for the deposit and purchase the house.
Buying a house or investing in a property is a dream of every tenant. And, there are two ways to fulfill these dreams. First with a mortgage and second with signing for rent to own. However, the latter one remain considered more reliable than the prior one, because it is more flexible than the mortgage.