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    How to Rent-to-Own a Mobile Home

    3 years ago · · Comments Off on How to Rent-to-Own a Mobile Home

    How to Rent-to-Own a Mobile Home

    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.

    Caravan park

    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 renttoown 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.

    Monthly Expenses

    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.

    Long-Term Goal

    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.

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    Rent-to-Own Mobile Homes: How Does it Work?

    4 years ago · · Comments Off on Rent-to-Own Mobile Homes: How Does it Work?

    Rent-to-Own Mobile Homes: How Does it Work?

    For most, securing manufactured housing means either renting or purchasing a manufactured home. However, there is a caveat, or rather a third option to consider — rent-to-own.

    Choosing rent-to-own mobile homes is a great way to become the homeowner you have always dreamt of being, without jumping the gun financially.

    Rent-to-Own Mobile Homes

    If you are considering whether or not to rent or purchase a mobile home, then now is the perfect time to see if renting with the option to buy is the better route for you and your family.

    What are Rent-to-Own Mobile Homes?

    Rent-to-own residences are mobile homes that are currently for rent. However, a rent-to-own lease includes an option for purchase or a possible requirement that you must buy the property after a certain period of time has passed.

    manufactured homes in home parks

    That said, the rent paid typically covers the current lease, and can be applied to your future down payment when you purchase the manufactured home.

    Usually, the rent-to-own option is a great way to build your credit up (credit score) while simultaneously saving up for a down payment. This is extremely beneficial for most people that simply cannot afford the average down payment, of which can often be as high as 5-20 percent of the price.

    Having a good credit score is really quite important in this case.

    How to Find One

    Finding rent-to-own mobile homes is not so easy. VIP Realty states, the reality is that rent-to-own listings are not that common.

    The reason these particular listings are so hard to find is that they typically only occur under a certain set of circumstances. In other words, if you have stumbled upon rent-to-own manufactured homes for sale that you are interested in, then you need to act fast.

    Generally, if mobile homes have been for sale/on the market for quite some time, then the owner may choose to list them as rent-to-own or vice versa (an interested party may have noticed that a manufactured home for sale has been on the market for a while and, thus, decide to approach the owner about a rent-to-own agreement).

    Then again, if a long-term tenant has expressed interest in purchasing the property, then the owner may agree to sell it as a rent-to-own.

    How Does it All Work?

    In order to get the ball rolling with rent-to-own manufactured homes, there are several things that must take place.

    Of course, a formal agreement needs to be made between the owner and the renter/buyer. Moreover, terms, fees, a price, and other pertinent details need to be figured out as well.

    Mobile home with American flag, front lawn and clear blue sky.

    Once all of the necessary paperwork has been handled, then, and only then, can the rent-to-own journey begin.


    There are two types of legal agreements/contracts that can be drawn up and signed by both parties, in terms of the rent-to-own agreement.

    Lease with Option to Purchase

    The first agreement is a lease agreement with an option to purchase. This particular contract essentially gives the tenant/renter the right to buy the manufactured housing unit, but not the obligation. Thus, at the end of the lease agreement, if you decide you do not want to purchase the manufactured home, then you can simply walk away.

    Note, you will lose out on any additional monies put towards the future down payment, so make sure to read the terms.

    Lease with Purchase Agreement

    The other contract is called a lease agreement with a purchase agreement. Here, you are legally obligated to purchase the mobile home or manufactured home as you signed with the rent-to-own contract.

    Consequently, with this rent-to-own agreement contract, you should ensure that a third-party inspection occurs, so there are no surprises down the road.

    You should also consider getting a possible pre-approval for a mortgage, just to make sure that you can qualify for one at the end of the agreed-upon term.

    Set Purchase Price

    In addition to a formal agreement, you should be aware of the purchase price upfront of the rent-to-own mobile home.

    Typically, the landlord or the real estate owner of manufactured homes for sale will set the price, and you can negotiate as you see fit.

    If you want to consult a real estate agent on a rent-to-own manufactured housing unit, you will likely have some difficulty finding an agent that deals with such real estate transactions. Therefore, you should do a little research of your own to figure out what the mobile homes or manufactured homes are going for in the area.

    Row of caravan trailers

    Tip: schedule your third-party inspection sooner rather than later, so you can reference it when negotiating the final price.

    Option Fee

    With this kind of real estate transaction, there is also an option fee. This fee is negotiable, but typically ranges from 1 to 5 percent, and is a one-time, non-refundable fee.

    This particular cost or fee allows you to purchase the manufactured housing unit for the agreed-upon price. The option fee is normally added onto the manufactured housing purchase, so you will not have to come up with any additional monies right away.

    Rental Term

    The standard rental term or period is three years, in most situations. However, as the renter or tenant, you can usually decide how long the rental portion of the program will be.

    Here, the point is to give yourself enough time to get your finances in order so that you can qualify for a mortgage or financing.


    Since this is a rent-to-own situation, maintenance roles will need to be defined.

    As you may be aware, when renting a manufactured home, most maintenance issues are not the tenant’s responsibility, whereas when you purchase, then the upkeep falls to you.

    Unsurprisingly, this can make for a sticky situation when you are renting-to-own. Thus, you and the owner must come to some form of an agreement as to who will ultimately be responsible for the necessary repairs and upkeep of your new home.

    With a mobile home, however, the actual owner is still responsible for maintenance.

    Monthly Payment Covers More than Rent

    Your rent-to-own agreement should also clearly lay out what, or rather, how much of your monthly rent goes toward your new home down payment savings.

    Often, a rent-to-own tenant will pay above-market rent so that at least 25 to 30 percent of the monies paid goes toward the down payment fund.

    That said, the money that is being set aside from your rent is rarely enough to cover a full down payment; thus, you should be saving up in addition to this.

    If you would prefer to negotiate for a higher percentage, that is up to you, but most people tend to stick to the 25 to 30 percent.

    Applying for a Mortgage

    Last, but not least, once the rental period or term nears to a close, then it is time for you to apply for a mortgage or find financing.

    The good news here is that applying for a mortgage or financing is pretty straightforward. You will look to secure the standard funding and work with lenders in the area that typically finance manufactured homes.

    Clearly, you should still shop around, if at all possible, and continue to save where you can. Also, make sure that the lender abides by equal housing laws.


    If your rent-to-own manufactured homes are located in a mobile home community, then you will need to go over the standard park rules and regulations that apply to a regular in-park purchase.

    Likewise, it is important to remember that with a mobile home, you do not own the land that the house sits on, therefore, you will need to lease the lot or pay a lot rent.

    Ultimately, choosing rent-to-own manufactured homes are a great way to get your foot in the door of your dream home.

    Contact us for more information and schedule your appointment!

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