FHA Rent To Own Mortgage Lenders Florida

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.