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WARNING: 20% Down is usually required for the Owner Financing option.
"Rent-to-Own" also known as a "lease option" or "lease purchase" – is an agreement that offers the tenant an option to purchase a rental property after a specified period of time. Tucson "Rent to Own" agreements are an alternative for renters who cannot afford to pay a large deposit to qualify for a mortgage, but who still want to own their own home. While on the surface the concept of a Tucson "rent-to-own" seems like a good alternative for both buyers and sellers in an uncertain market, the actual option comes significant financial risks for both parties.
We share this information not to necessarily discourage people from the rent-to-own – but to make you aware of the risk that doesn't seem so obvious at first glance. And also offer finding other "creative financing" options. We have some of the most experienced professionals that can find solutions for most people interested.
A Tucson "lease option" has the same risks for the renter/buyer as a traditional mortgage, but without the benefit of potential recovery. If you the renter stop on your payments, for example, you loses the Tucson property the same way you would otherwise lose your Tucson home to foreclosure. However unlike foreclosure, you the renter have no legal options to recover your investment – you cannot sell the property, because You do not own it, yet. Your landlord can take full ownership of the Tucson property, regardless of how close to the end of your lease agreement you might be, and you the renter completely loses any excess money you paid toward your eventual down payment on the "rent-to-own" home.
If you are looking for a Tucson home but have struggled to qualify for a traditional bank loan, you are not alone. MyOwnArizona.com can possibly help you solve your problem. Give our team experienced professtionals give you "creative financing" options to choose from.
After your Tucson "rent to own" lease expires and you want to purchase the property, you still need to get financing, and there is no guarantee you'll be able to get it. Qualifying for a mortgage is the one responsibility you have as the renter, and if you still cannot afford or qualify for a mortgage, you lose all of the money your already "invested" in the property. And on the flip side, the landlord is now stuck with the Tucson property with no buyer to purchase it. Short term Tucson rent to own arrangements are particularly risky for this reason.
At MyOwnArizona, there's no charge for you to browse our Arizona homes for sale. All you need to do is contact us and we will provide the list of homes for you free of charge.
In a typical Tucson "rent to own" arrangement, you the buyer pays more than the actual fair market rent each month. The additional rent actually goes toward the down payment for the purchase of the Tucson property – like a savings plan built into the rental payments. You and the landlord negotiate what the monthly payment will be, including the additional amount to be applied to the down payment. At the point purchase, it then becomes the lender's decision what amount may be applied toward the down payment. If the lender decides that a smaller or larger portion of the rent applies toward the down payment, then either you or the landlord stands to lose money at the time of sale.
You will find "creative financing" options once you start by contacting a MyOwnArizona team professional. Just email info@MyOwnArizona.com or call (520) 222-6929 and tell us what you are looking for. We will then send you homes available.
Not all Tucson "rent to own agreements" necessarily benefit the seller. While you the renter typically "purchases" the option to later buy the property, you are not bound to buy at any time after the lease agreement ends – you just have the option to do so. To protect their interests, a landlord could demand a "lease purchase" arrangement, a less common "rent-to-own" arrangement that does bind the tenant to buy the Tucson property; however, this carries an even higher risk of loss to both sides in the event you cannot get financing. Another arrangement involves you and landlord creating into a "lease option," effectively allowing the tenant to renege with no penalty, without affording the landlord a way out of the eventual sale. Either way, the landlord accepts the risk of a potentially significant loss.
As you can see, there are a lot things to consider when entering any long-term agreement. We encourage you to work with us to find the option that is best for your situation.
Go ahead, Call or Text us right now at: (520) 222-6929 or email for State of Arizona real estate results, not hype.
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