Rent to Own Florida Mortgage Lenders 

Our Rent Own Florida Mortgage Lenders allows you to PICK OUT THE HOME OF YOUR CHOICE listed for sale on the MLS and rent while you build equity.  If you’re looking for Florida rent-to-own homes for sale, this homebuyer program allows bad credit Florida mortgage applicants the opportunity to pick out the Florida home of your choice and rent-to-own lease option while building equity. An FHA-approved non-profit government Florida mortgage lender buys the Florida home of your choice and creates a Structured Financing Agreement that allows you to purchase the home when you’re ready. Your rent-to-own pre-approval letter will be based on your payment history, and the minimum credit score is 500 with 10% down or 3.5% down with a minimum 580 credit score. This rent-to-own Florida mortgage program allows Florida home sellers to pay up to 6% towards closing costs and prepaids. 

ELIGIBILITY FOR RENT TO OWN

• Pick out your own rent-to-own home that meets FHA guidelines.
• Primary Residence for Homebuyer(s) – Purchase only 
• 580+ credit up to 96.5% LTV = {3.5% Downpayment}
• 500+ credit up to 90% LTV = {10% Downpayment}
• Self-Employed No Tax Returns OK!
• Proof of good payment history.
• Max Debt To Income (DTI) 60%
• Seller paid closing costs up to 6% OK!

RENT TO OWN HIGHLIGHTS:

RENT TO OWN INCOME TYPES:

RENT TO OWN OVERVIEW 

RENT TO OWN STEPS 

STEP 1: Submit a fully completed application, TOP RIGHT CLICK APPLY NOW, for our rent-to-own underwriters to pre-approve.
• The property address must be identified in the portal if a property has been selected by the Homebuyer(s), otherwise
The property address may be identified as “TBD” or To Be Determined.
• Qualifying documentation must be uploaded to the loan in the portal. Required documentation includes but is not limited to, income and assets, as well as any supporting credit history documentation (housing, alternative tradelines,
credit event details, etc.), identification, LOEs, etc.
• Note: A review will not be completed until all qualifying documentation is received and confirmed.

STEP 2: Once the Homebuyer(s) have selected a property of their choice, the Homebuyer(s) enter into a purchase agreement with the property seller for the selected property.
• The property must meet the DreamBuilder eligibility and guideline requirements.
• The “buyer” portion of the contract MUST identify the Homebuyer’s name(s), in addition to “and/or assigns”.
• The Homebuyer(s) MUST execute the Assignment Addendum to Purchase & Sale Agreement to transfer the contract to the FHA eligible government entity (the entity purchasing the property on behalf of the Homebuyer(s)).
• Broker to provide the executed contract with all addenda (including Seller’s Disclosure) to Open Mortgage Wholesale.

STEP 3: The Rent-to-own Homebuyer’s name will be retained within the portal as the Homebuyer/Tenant, and the borrower on the transaction will be transitioned to the FHA-eligible government entity.
• The FHA investment purchase will be identified within your portal pipeline under borrower “Tule River Homebuyer
Earned Equity Agency”.

STEP 4: The subject property appraisal must be ordered, completed, then reviewed and approved to guideline requirements. All conditions related to the property must be addressed and satisfied.
• The Florida mortgage lender will order the appraisal on behalf of the Broker/Homebuyer(s). The Homebuyer(s) are
responsible for paying for the appraisal.

STEP 5:  The Rent-to-own Homebuyer(s) execute the Homeownership Agreement and remit all funds for closing to the title company.

STEP 6: The purchase transaction is closed at an approved title company.

STEP 7: The Rent-to-own Homebuyer(s) move into the property and begin their journey toward owning the home!
• The option purchase price reduces with each monthly payment made by the Homebuyer(s).
• All appreciation acquired from the date of closing until the Homebuyer(s) purchases the property belongs to the
Homebuyer(s).
• At any time, the Homebuyer(s) can sell the home, purchase the property from the FHA-eligible government entity, or assume the existing FHA loan on the property.

What Are Your Reasons For Bad Credit?

Foreclosure – Bankruptcy – Divorce – 30,60,90 day late payments – Claim of lien  – Lis Pendens  – Code violations  – Tax Lien – Department Of Revenue Warrant –Final Judgment –Deinquent HOA –

INCOME QUALIFYING SUMMARY

• 12 months of consistent employment history is preferred
▪ Employment history of less than 12 months may be acceptable with compensating factors
▪ Income will be calculated according to FHA and mortgage industry standards, unless otherwise
indicated in the guidelines
• Eligible income includes, but is not limited to:
▪ Wage Earner Income
▪ Self-Employed Income
▪ Bank Statement Only
▪ Independent Contractor/1099 Employee Income
▪ Individual Taxpayer Identification Number (ITIN) Income
▪ Asset Depletion
▪ Asset Liquidity
▪ Dividends and Interest
▪ Rental Income
Contact your Account Executive for the income documentation requirements.

RENTAL HISTORY – Verification of Rent (VOR)

12 months of documented 0x30 payment history (in good standing, no prior evictions or late payments, and no balances remaining upon termination of lease agreement) is required.
• Property Management Company: Fully completed VOR
• Private Landlord/Private VOR: Fully completed VOR acceptable; additional supporting documentation may be required, refer to guidelines
• Renting from Relative: Cancelled checks or bank statements are required
• Electronic Payments: Alternative methods of documenting housing history, including electronic
payments (Venmo, Zelle, PayPal), are acceptable with a complete history documented.
Cash payments can be verified by a VOR (even with a private landlord) if one of the following is
provided:
• Copies of cashier’s checks for the most recent two (2) months
• Three (3) months’ bank statements showing money going to the landlord
Note: If the Homebuyer is unable to properly document the above, an exception may be requested with compensating factors..

ASSIGNMENT OF CONTRACT EXAMPLE

Once you locate a move-in-ready home that appears to meet FHA mortgage minimum guidelines, you will write up a purchase and sale agreement with the seller of the house. You will then assign your purchase agreement to the lender to purchase the home for you. By signing below, Homebuyer assigns all of its rights and interests in the Agreement to the lender.. Seller consents to such assignment by the Homebuyer with its signature on the line provided below. This Assignment shall be effective on the date accepted. In addition to the assignment, the Homebuyer and Seller agree to the following additional terms:
1) To accommodate timing for document signing and recording, closing may occur within 3 business days of the agreed-upon closing date specified in the Agreement.
2) Any unused Seller-paid closing costs or concessions not used by the rent-to-own Florida mortgage lender shall be disbursed by escrow as directed by an authorized representative of the designated Homebuyer and must comply with HUD requirements for the financing as determined by the rent-to-own Florida mortgage lender .
3) Homebuyer earnest monies on deposit shall be transferred into the name of the rent-to-own Florida mortgage lender and applied to the loan and toward the rent-to-own Florida mortgage lender financing costs.
4) Homebuyer must utilize financing through the DreamBuilder program to purchase The Property or this assignment to the rent-to-own Florida mortgage lender is void.
This contract is subject to the Homebuyer qualifying for and executing the rent-to-own Florida mortgage lender long-term purchase agreement on this property. If there is a change in the Homebuyer’s circumstances and the Homebuyer no longer qualifies for the long-term purchase agreement or the Homebuyer refuses to execute the final long-term purchase agreement, the purchase contract and assignment addendum are void and the maximum liability for the rent-to-own Florida mortgage lender’s non-performance is forfeiture of the earnest money.

RIGHT TO PURCHASE MEMORANDUM

Your Right to Purchase memorandum filed in county records gives you the right to purchase the home you selected for at a predetermined price as long as you comply with the terms and conditions of the agreement. The homebuyer has the right to purchase the Property as set forth in the Agreement. The Agreement creates an ownership interest in the nature of a ground lease. For the purposes of the Memorandum, the name of the fee simple title holder in the Agreement is Earned Equity Agency. The Agreement and this recorded memorandum, upon conveyance, will terminate if title to the Property is transferred by foreclosure or deed-in-lieu of foreclosure, or if the Mortgage Loan is assigned to the Secretary of HUD or any successor federal government agency. Unless otherwise provided herein, all capitalized terms shall have the same meaning as set forth in the Agreement. This Memorandum contains only selected provisions of the Agreement.   Reference is hereby made to the Agreement for all the terms and conditions, which shall control.  This Memorandum does not, in any way, amend or supersede the terms of the Agreement. This Memorandum may be executed in counterparts.

QUESTIONS AND ANSWERS

Q: What type of house can I buy when searching for Florida rent-to-own homes for sale?
You can buy a property that would qualify for FHA. This includes single-family homes, townhomes, Villas, and manufactured homes. The home must be livable, habitable, insurable, and move-in ready.

Q: What are the tradeline requirements for the rent-to-own DreamBuilder program?
• An eligible credit report must reflect at least one (1) tradeline and provide at least 12 months of credit history. Alternative tradeline history may be acceptable; refer to the guidelines for details

If the rent-to-own Homebuyer has tax liens, collections, charge-off accounts, and/or judgments, how is the debt treated?
• Generally, tax liens and collection accounts must be included in the qualifying DTI.
• Debt payments for charge-off accounts and judgments are not required to be included in the qualifying DTI.

What are tradelines are required for the rent-to-own DreamBuilder program?
• An eligible credit report must reflect at least one (1) tradeline and provide at least 12 months of credit history. Alternative tradeline history may be acceptable; refer to the guidelines for details.

Q: Can the Homebuyer sell the property that is acquired through the rent-to-own program?
• The Homebuyer may coordinate the property sale provided all payments have been timely, the account is in good standing, and the underlying option price is satisfied in full with the property sale. Otherwise, the Homebuyer must meet all FHA guidelines and assume the FHA mortgage from the government entity, and then the Homebuyer can sell the property after the assumption is complete.

Do installment debts with less than 10 payments have to be included in the (DTI) Debt-to-Income Ratio?
• Yes, all debt reflected on the credit report must be included in the DTI.

As a tenant homebuyer, can I make higher monthly payments to reduce the underlying option price and expedite the Florida home sale?
• Yes, this is acceptable. The Homebuyer must remit the standard monthly payment per the terms of the agreement via
ACH AND mail a separate check for the additional principal payment to the government entity with clear
Instructions in the check memo to apply the excess funds as a principal reduction

Q: Can I qualify for rent-to-own with a 500+ credit score?
Yes, approvals are based on payment history and are not credit score driven. If you can prove ablitiky and illness to repay and you have the funds needed to close then you will qualify.

Q: Is the Homebuyer listed on the mortgage security instrument or note?
• No, the rent-to-own Florida Homebuyer is not named on either legal document.