With local lease to own homes in California, both parties have the potential to get what they want out of the deal. The person renting the home gets to live in it while saving for a down payment and cleaning up their credit so they can get a mortgage. And the owner of the home doesn’t have to worry about having to pay two mortgages or maintaining a vacant property.
Lease to own agreements are becoming increasingly popular in California because they can benefit both people who want to own homes but can’t yet afford them and homeowners who want to sell their home but can’t find qualified buyers.
Read on to learn more about the process, or contact us today at 909-344-3223 to look at local lease to own homes in California California.
Local lease to own homes in California
All lease to own agreements are unique, but generally they include an option fee – usually 1% to 5% of the home’s price – which is credited to the purchase price. The renter also pays the market rent for the home plus an additional rent premium which is credited to the purchase of the home if they choose to exercise their option to buy when the lease to own contract expires.
If they renter doesn’t want to buy the home – or can’t because they didn’t save enough for a down payment or don’t qualify for a mortgage – they could lose both the option fee and the rent premium.
How long should the lease be?
From the renter’s perspective, a longer lease to own contract – such as three to five years – is desirable because it gives them longer to save for the down payment and clean up their credit rating. But a longer contract can backfire on them if they don’t buy the house at the end of the lease because they will lose their option fee and the extra rent they have been paying.
From the home seller’s perspective, the shorter the lease the better, in general. However, if the lease is too short, it may not be enough time for the renters to do what they need to do to buy the house. And the sellers are left right back where they started.
The option fee and the rent premium also are viewed differently by the sellers and the buyers.
For the renter, those fees are something they are willing to pay because they fully intend to buy the house at the end of the lease. But for the seller, they are a protection against the risk that the home won’t be sold at the end of the lease.
Local Lease to Own Homes in California: Who Wins?
Which party benefits most from a lease to own agreement in California really depends on the terms of the contract and what happens when the lease expires. But in an ideal agreement, both parties should feel that they won: The seller doesn’t have to pay two mortgages and the renter gets to buy the home they’ve wanted all along!
Here’s The Fastest Way To Find Homes For Lease To Own In California…
By far the fastest way to find homes for lease to own in California , is to contact us. We have years of experience in this field and can help you easily find homes for lease to own in California in no time.
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