A time comes when you need to upgrade your living arrangement, from renting an apartment to owning a house.
However, the price of buying a home property upfront 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.
Mobile homes offer the opportunity to actualize that dream of buying a house since they are way cheaper compared to traditional houses.
More so, it can take you less than 3 years to own a mobile home if you choose a rent-to-own landlord-tenant arrangement.
Doing real estate property research prior will help you uncover the details about how to rent-to-own a mobile home in Cedar Springs, Michigan.
Usually, rent-to-own isn’t that popular, and finding a real estate property agent to offer insights and a guide can be tough to locate.
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 rent-to-own, you pay a down payment and a higher monthly deposit. This way you are not only paying rent (including lot rent payments), but also owning it partially until you reach the agreed purchase price.
Things to Keep in Mind When Choosing 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 homes lot rent payments to cover up for the purchase price at the end of the lease agreement 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 accounting books.
Compare Manufactured Home Rent and Cost of Buying
Check out several mobile homes for sale with an option for rent-to-own and find the best deal on offer. Prices vary and you’d want to get more than the value of your money.
Ask around Cedar Springs, MI, 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 mobile homes rent contract without fully comprehending the terms in it (including lot rent payments).
It’s suicidal to do such a thing when purchasing mobile homes, 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, seeking a legal expert for guidance before signing the mobile homes rent agreement is the way to go.
It isn’t like purchasing the house upfront. It’s a commitment that requires consistency if you are to stay on course before the manufactured home rent contract ends.
An initial plan before entering the landlord-tenant manufactured home rent-to-own agreement contract will 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 agreement, why don’t you agree on which party does the mobile homes maintenance?
Leaving no stones unturned and agreeing on everything is ideal to evade any possible conflict in the future.
How to Rent to Own a Mobile Home
Not so many people are used to hearing such an option when it comes to buying a house. However, it’s viable and a good option to use when thinking of owning mobile homes on a budget.
The only catch is navigating through to the end where you sign the rent agreement and begin paying. Where do you begin? Here’s how to get through the process of renting-to-own mobile homes in Cedar Springs, Michigan.
Locate the Manufactured Home Park in Cedar Springs, MI
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, with just a snap of the finger several options are 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 will help you.
Ask them as many questions as possible. They are likely to offer you referrals to the right mobile homes dealers.
You may also personally visit the mobile homes dealers around Cedar Springs and get first-hand experience.
Scrutinize the Park Standard Rules
You would want to live where you feel comfortable staying, and among the first things to do while hunting is checking the manufactured home park rules.
It’s where you are likely to settle and establishing their way of life is ideal for your stay. You may want to know what are the Dos and Don’ts of the mobile homes park. For example, do they accept pets?
Ask About Rent-to-Own Option Availability
Not all mobile homes communities may be up to such options. Inquire about the option of buying a manufactured home through rent-to-own. It’s common to do 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 it’s okay with you, now what is the purchasing cost of the mobile home? Ask for the quote, and negotiate if possible.
You might want to get clever here by checking out several mobile homes dealers with an option for rent-to-own.
Enter a Legal Agreement
Once you agree on the cost, now is the time to check your options on the mobile homes rent agreement. Do you want to go down with an obligation type of lease? This option ties you to buy the mobile home after signing.
Or maybe you might want a different type of mobile homes rent agreement where you are not obligated but rather a rent-to-own with an option to buy the house.
Make your choice on the type of lease and commit as per the terms.
Apply for 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 manufactured homes options and whether you’re eligible to get them.
Among the manufactured homes loans you should consider are:
- FHA Loan
- VA Loan
- Personal Loans
Check for their terms and eligibility criteria and apply.