Rent to own homes in St Cloud Florida are in high demand. The problem is, they are in
short supply. Much like the search for “Big-Foot”, do they really exist ? Renters looking to
transition into home ownership, need to be mindful, that in a rising market, a ” Rent- To-
Own” Option is a poor choice for a home seller.
If there property is worth $100,000 today,
and you have a ” Option to Buy” in a year, the seller will actually be taking a loss.
price gains in the past year, have risen 12 percent. So, that $100,000 home, would be worth
$112,000, as an example. Costing the home seller $12,000 in appreciable loss as the
housing market continues to rebound albeit slowly.
Typically, renters looking for this type of easy entrance into the home market, may also
have credit issues, which are forcing them to look for less traditional and more “creative”
methods to transition into home ownership.
The inherit risk to would be rent-to-own participants on the buying side, is of course the
possibility that the home seller is in distress, early stages of foreclosure, or in short sale
jeopardy. Which means, you could lose any credit towards your purchase.
Traditional methods for purchasing a home really are the best option still. Loans through
FHA are available for would be buyers with FICO scores under 600. It is wise to consult with
a mortgage broker, or banker, to determine what your credit worthiness is, and what you
may need to do, to improve your credit score to better position yourself to make purchase
purchase in the future. Buying a home, is the largest purchase you can make. Get good
ad use from a loan originator, and avoid looking to create problems down the road by
searching for short cuts.