A time comes when you need to upgrade your living arrangement, from renting an apartment to owning a house.
However, the upfront cost of buying a home property can be overwhelming for anyone looking to go down that path, especially with a small income stream.
With that said, this does not mean you are out of options.
A mobile home offers the opportunity to actualize that dream of owning a house since they are way more affordable compared to traditional site-built houses.
More so, it can take you less than three years to own a mobile home if you choose a rent-to-own landlord-tenant arrangement.
Doing the proper real estate property research beforehand will help you uncover the details about how to rent–to–own mobile home units.
Usually, a rent-to-own agreement isn’t that popular, and finding a real estate property agent to offer insights and a guide can be tough to locate.
So here we are to help!
What is a Rent-To-Own Agreement?
A rent-to-own agreement means you agree with the property landlord/real estate owner about buying the house in installments through mobile home rent.
With a rent-to-own agreement, you pay a down payment and a higher monthly deposit. This way you are not only paying rent, but also gaining credits toward owning the mobile home, until you reach the agreed purchase price.
Things to Keep in Mind when Choosing the Rent-to-Own Option
While the landlord-tenant rent-to-own agreement might sound like an easy option, don’t get excited just yet. There are a couple of things you need to understand about this type of contract.
This option has a higher monthly mobile home lot rent payments to cover up for the credits toward the purchase price throughout the rent-to-own contract
It’s important to establish what’s coming so that you don’t get caught up in any way. Know what you’ll be paying monthly and prepare your budget accordingly.
Compare Manufactured Home Rent vs. Cost of Buying
Check out several rent-to-own mobile homes and find the best deal. Prices vary and you want to get more than you pay for, if possible.
Ask around and get referrals to some of the best mobile home dealers.
Understand the Terms of the Rent Agreement
Common mistakes people make are rushing to sign a manufactured homes rent-to-own lease agreement without fully comprehending the terms in it (including rent payments for the lot).
It’s suicidal to do such a thing when purchasing a manufactured housing unit, or generally dealing with anything involving signing a rent agreement.
You have to break down each term and make sure you understand them. If you seem to have a problem or you need clarity over something, seek a legal expert for guidance before signing the rent-to-own contract.
This isn’t like purchasing a house upfront. It’s a commitment that requires consistency, if you are to stay on course during the life of the manufactured homes rent contract.
Having an initial plan, before entering the landlord-tenant manufactured housing rent-to-own agreement, would be a wise thing to do.
Based on the agreed cost, establish how long it may take to hit the target and fully own the manufactured home.
Who is Responsible for Maintenance?
Before signing a rent-to-own contract, be sure to agree on which party does the mobile home maintenance.
Leaving no stones unturned and agreeing on everything is ideal to evade any possible conflicts with the agreement in the future.
How to Rent-to-Own a Mobile Home
Not many people are used to hearing such an option when it comes to buying a house. However, it’s a viable and great option to use when you are wanting to own a mobile home while on a budget.
The only catch is navigating through to the end where you sign the rent-to-own agreement and begin paying.
Where do you begin? Here’s how to get through the process of renting-to-own mobile homes:
Locate the Manufactured Home Park
If you are looking to buy a manufactured home in a park, then where exactly is that? Establish the right location where you feel comfortable and begin the hunt for the right deal.
An internet search will be a good way to start. With just a snap of the finger, several options are instantly at your disposal.
If you can’t find what you are looking for, talking to friends who bought their mobile homes through such an option can help as well.
Ask them as many questions as possible. They are likely to offer you referrals to the right mobile home dealers.
You may also personally want to visit the mobile homes dealers and get first-hand experience.
Scrutinize the Park Standard Rules
You would want to live where you feel comfortable staying. So, among the first things to do while hunting is to review the manufactured home community rules.
Familiarize yourself with the Dos and Don’ts of the mobile home park. For example, do they accept pets?
Ask About Rent-to-Own Option Availability
Not all mobile home communities offer such options. Inquire about rent-to-own mobile homes and if they offer them.
It’s common to make such inquiries to smoothen the process and avoid any misunderstanding.
Check the Purchasing Cost and Negotiate
You have located the right house, checked the park rules, and you think you’ve found the right place.
Now, what is the purchasing price of the mobile home? Ask for the quote, and negotiate, if possible.
You might want to get clever here by checking out several rent-to-own mobile home dealers to compare prices.
Enter a Legal Agreement
Once you agree on the price, now is the time to check your options on the rent-to-own mobile home agreement.
Do you want to go with an obligation type of lease? This option ties you to buy the property after signing.
Or maybe you might want a different type of rent-to-own mobile home agreement? One where you are not obligated to buy the property, but rather a rent-to-own mobile home agreement with an option to buy the house down the road.
Make your choice on the type of rent-to-own mobile home lease you want, and commit as per the terms.
Apply for Your Mortgage
Applying for a mortgage will help you finance the purchase of the house. It’s important to check for financing options before agreeing to buy the house.
At least you will be aware of your mobile homes options and whether you’re eligible to buy them.
Among the manufactured homes loan options you should consider are:
- FHA Loan
- VA Loan
- Personal Loans
Check for their terms and eligibility criteria, then apply accordingly.