Rent To Own FHA Mortgage Lenders Florida

The NEW  Rent To Own FHA mortgage program is a unique opportunity in which a purchase transaction is completed
by an FHA-eligible government entity that enters into a lease-to-own and long-term purchase agreement, or structured financing
agreement, with qualified Homebuyers, thereby allowing the Homebuyers to purchase the property in the future. Refer to the
Rent To Own FHA mortgage program guidelines for complete details.
Eligibility
• Primary Residence for Homebuyer(s)
• Purchase
• Up to 96.5% LTV
• Full Doc and Alt Income options
• Exceptions may be considered on a case-by-case basis
Q: How does the Rent To Own FHA mortgage program work?
A: When a Homebuyer does not qualify for traditional FHA mortgage financing, the Rent To Own FHA mortgage program offers a new and exciting
way for the Homebuyer to ultimately enter homeownership.
Step 1: Boeeoqwe submits a fully completed application for the FHA rent-to-own mortgage program for a Rent To Own FHA mortgage program Homebuyer review.
• 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”.
• 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) has selected a property of their choice, the Homebuyer(s) enters into a purchase agreement with the property seller for the selected property.
• The property must meet the Rent To Own FHA mortgage program 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 FHA rent-to-own mortgage program.
Step 3: The 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.
• FHA rent-to-own mortgage program will order the appraisal on behalf of the Broker/Homebuyer(s). The Homebuyer(s) are responsible for paying for the appraisal.
Step 5: The Homebuyer(s) executes the Homeownership Agreement and remits all funds for closing to the title company.
Step 6: The purchase transaction is closed at an approved title company.
Step 7: The Homebuyer(s) moves into the property and begins 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.

RENT TO OWN FLORIDA DISCLOSURE

Florida Mortgage Lenders Rent To Own program desires to serve all consumers’ home financing needs, including those in typically underserved markets or those who may not qualify for traditional mortgage finance. With this mission in mind, the Florida Mortgage Lenders Rent To Own program may refer certain consumers to the “Rent To Own FHA Program” (the “Program”). Florida Mortgage Lenders Rent To Own program works with an unaffiliated party to provide the Program as a bridge to homeownership for consumers unlikely to qualify for traditional conforming financing.It is important to understand, however, that the Program is not a mortgage loan offered by the Florida Mortgage Lenders Rent To Own program. The Program is a shared ownership financing program to bridge the gap between renting and homeownership for those who may not qualify for a traditional mortgage. The basic structure of the Program is as follows for approved consumers (“Homebuyers”):
• A governmental Agency (“Agency”) — often an affiliate of a Native American Tribe — purchases a home (“Home”) using the Homebuyers’ purchase and sale agreement with a third-party seller.
• Florida Mortgage Lenders Rent To Own program lends funds to the Agency for the purchase of the Home.
• The Agency enters into a ground lease financing agreement with Homebuyers to purchase the home and obtain a leasehold interest in the land (the “Homeownership Agreement”). The Homeownership Agreement for the Program can be obtained by contacting your loan Florida Mortgage Lenders Rent To Own program.
• In addition to making the payments required by the Homeownership Agreement, Homebuyers must occupy and maintain the Home.
• The Homeownership Agreement has the option to purchase the Home (the “Purchase Option”) and otherwise is amortized and fully paid over 40 years similar to a fully amortizing mortgage. Highlighted Differences with Traditional Mortgage Finance
As stated above, the Homeownership Agreement is not a traditional mortgage loan. Some, but not all, differences between this Program and a traditional mortgage loan are detailed below. Again, please review the Homeownership Agreement for additional information before deciding to proceed:
1. The Homeownership Agreement is a financing arrangement whereby the Agency will own fee simple title
to the Home until the exercise of the Purchase Option or payment in full.
2. Homebuyers own the Home through a ground lease interest created by the Homeownership Agreement. Fee simple title is transferred to Homebuyers upon exercise of the Purchase Option or payment in full.