Is Lease-to-Own Financing a Viable Solution to Affordable Housing Concerns in Florida?

It’s a problem cropping up for those seeking a Florida home loan almost anywhere in the state: affordable housing. As home prices surge, individuals hoping to find a deal for under $200,000 are being squeezed out of the market.

What can be done to solve this issue? If the Sunshine State follows the increasingly popular lead of Miami Valley, Ohio, the answer could be a common tool for purchasing a car: lease-to-own financing.

Nearly a third of the 965 single-family homes built in Dayton from 2001 through 2005 were bought using this type of arrangement, according to city records. Across Ohio, 170 lease-purchase projects were built from 1987 to 2005, putting citizens into 7,689 affordable homes.

But is this a reasonable type of home loan?

We’ve reported previously about problems with lease-option mortgage. While it supposedly suits those who cannot afford significant mortgage bills each month - because it only requires certain rent payments to be due at a time as you build equity - these arrangements have been the subject of fraud recently.

Often targeting desperate owners that are facing foreclosure on their properties, this type of Florida home loan might not have your best interests in mind. The other group aimed at would be those seeking lower initial payments on their Florida home loan. Be sure to consult with real estate experts before making any final decisons.We understand you want a mortgage you can afford - but you also want one that won’t cost you extra in the long run, right?