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Rent-To-Own Mobile Homes

rent to own mobile homes

Are you looking for an alternative way to purchase a property and live in a community

For many people, owning a house is a lifelong dream. It signifies a sense of freedom and achievement, as well as being a place to hang your hat. However, many people find that purchasing a house outright can be a struggle. Most people who don’t have the funds to purchase a house end up renting, but there’s a third option. 

So, let’s take a closer look at rent-to-own mobile homes and how you can get your hands on one.

All About Mobile Homes You Can Rent-to-Own

Renting a mobile home allows you to become a homeowner without paying the purchase price upfront. Instead, you pay monthly rent at the agreed rate. However, the amount of rent you pay each month will be subtracted from the final purchase price of the property.

This can be a good option if you are not quite ready to become a property owner. You get the chance to live in a mobile home for several months or years and see if you like it. Once you have saved up enough money, you can then become the proud owner.

Down payments…

The average down payment on a property is around 5% to 20% of the total purchase price. This can be a lot to pay all at once, especially if you have a low credit score. This option gives you the time you need to build up your credit loan so you can secure a mortgage.

How To Find A Rent-To-Own Mobile Home?

Trying to find this type of property can be tricky. This is because these types of listings are not very common. Many owners prefer to sell their properties outright rather than offer the rent-to-own option. If you do manage to find one of these, you need to act fairly quickly to secure it.

A property owner may offer the rent-to-own option if it’s been on the market for a while. Although they would probably rather sell it outright, they may have had little or no interest. Offering this option can increase the chances of making a sale further down the line.

How To Find A Rent-To-Own Mobile Home

Rent now, buy later…

Renting a mobile home to start with could give you the option of buying the property later. After renting for a few months, you could approach the owner with the rent-to-own option. If they are interested in selling their property, they might agree to this type of contract.

How The Process Works?

Once you have found the right one, you need to complete several official steps. Even after the owner verbally agrees, a formal agreement will need to be created and signed. You also need to confirm all the details. Let’s take a closer look at the steps you need to complete.

How The Process Works


Two main types of legal contracts could be drawn up and signed. The contract you choose must be signed by both yourself and the owner, and you need to keep a copy. Before signing, you must read it carefully and make sure all the details are accurate.

Lease with option to purchase

This is the first type of contract, and it gives you the right to purchase the property. However, you are not obligated at the end of the lease agreement. If you decide that the property doesn’t meet your needs, you are free to walk away once the lease ends.

The only catch is you will lose any extra money you paid as a down payment if you walk away. Therefore, it is important to read the terms of the agreement carefully. Only hand over a down payment if you are sure you will buy the property later.

Lease with the purchase agreement

This type of agreement legally obligates you to purchase the property at the end of the lease period. Therefore, you need to make sure a third-party inspection is carried out before you sign the lease. This makes sure that there won’t be any nasty surprises after you’ve moved in.

If you choose this type of lease, consider getting pre-approved for a mortgage. This will make sure you can qualify at the end of the lease term. Otherwise, you may not be able to meet the legal obligations.

Set purchase price

It is essential to agree on the purchase price before signing a lease agreement. This will usually be set by the landlord or real estate owner. However, it is usually possible to negotiate the price a little. You should also get a third-party inspection and reference it during the negotiation. It is also best to do some research into the price of similar properties in your area.

Option fee

You will need to pay an option fee when you complete this type of real estate transaction. Although you can negotiate this fee, it is non-refundable. You only pay the fee once, and it ranges from 1% to 5% of the purchase price. The fee ensures that you can purchase the manufactured housing later for the agreed price. This means that you won’t have to pay it until you are ready to buy the housing.

Rental term

In most cases, the typical rental term is three years. However, you can negotiate it if you want a slightly longer period. It is important to make sure you have enough time to put your finances in order and secure a mortgage.

Rental term


You need to define the maintenance roles before signing the agreement. Any maintenance issues that arise when you rent a property are usually the responsibility of the landlord. However, you are responsible for general maintenance when you own a property.

Maintenance is a bit of a gray area with rent-to-own properties. It is essential to clarify this with the landlord before signing an agreement. Otherwise, you could end up spending a lot on maintenance if the mobile home is slightly rundown.

What the monthly payment covers?

When you pay monthly installments, at least part of this money goes toward the cost of the property. The agreement should clearly state the percentage of the payment that goes to the down payment fund. In most cases, this will be between 25% and 30%. It is best to try and negotiate the highest percentage possible before signing.

The Necessary Credit Score 

Even if you already have the deposit for the property, you are likely to need a loan to cover the rest. You need a credit score of at least 700 to qualify for the lowest possible interest rates. If it’s lower than 700, the interest rate will be much higher.

The Necessary Credit Score 

Most lenders will only provide you with a loan if your credit score is higher than 500. If you have a particularly low credit score, you may be able to secure a loan through the Federal Housing Authority. Fortunately, the rent-to-own gives you time to raise your credit score so you can secure a lower interest rate. 

The Advantages

This type of agreement allows you to spend time living in a community. You will get the chance to make sure the property and community meet your needs. Here are some of the other main benefits of choosing this type of agreement. 

The Advantages

Less wasted rent money

Paying rent each month on a property you will never own is like flushing money down the toilet. When you sign a rent-to-own agreement, a percentage of your rent goes toward the down payment. This makes it easier to save up for your future home and avoid wasting money on rent. 


This type of housing is much more affordable than a traditional house. These days, trying to buy a house is a real challenge for most people. The lower cost of rent-to-own mobile homes helps to make them more accessible. 

Limited commitment

Depending on the type of agreement you sign, you don’t have to purchase the property at the end of the lease. There will be no need to commit to a loan until then. You will have plenty of time to live in the mobile home and make sure it’s the right option for you. 

The Disadvantages

It is important to keep your needs firmly in mind when looking at property agreements. In some cases, you may find that the disadvantages outweigh the advantages. Here are some of the potential disadvantages of renting a mobile home.

The Disadvantages

A pre-established rental requirement

The rental period before you can buy should be set out in the agreement. This could be an issue if you decide the property isn’t for you after a few months. You will have to pay a hefty fee to break the lease if things don’t work out.

On the other hand, you may be ready to purchase before the end of the lease. Even if you have saved up enough after the first year, you may be forced to pay rent for an extra year. This can be a waste of money if you are ready to become a homeowner. 

You might need extra time

The agreement usually states that you can rent the property for a few years. At the end of the lease period, you will have to purchase the property or move out. This can be an issue if you haven’t saved up enough money to buy it yet.

One way to get around this is to work an additional lease option into the agreement. This will allow you to lease the mobile home for an extra period if you need to. Otherwise, you risk losing the money you have already paid if you can’t come up with the outstanding amount. 

You might only be renting the property

It is important to read the terms carefully before signing them. On closer inspection, you may find that you are only paying to rent the actual home. This will mean that you will have to pay extra to use the surrounding land. 

If your landlord owns both the property and the lot, they may not renew your lot lease. This could be a real issue if you are forced to enter into a separate lease for the lot. Make sure the terms of your contract cover the lot and the period is the same as for the property. 

Rental payments are often higher

The rental payments are usually higher for rent-to-own agreements than for more traditional leases. This is because the landlord still needs to make sure they make a profit from the deal. You need to work out how long it will take you to come up with the down payment. This will indicate how much money you will spend in the long run.


Although the value of traditional houses usually increases over time, mobile homes tend to depreciate. This could be an issue if you want to sell the property later in life. You are likely to find that you walk away with much less than you paid.

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Final Thoughts 

If you want to own a mobile home, the rent-to-own option could be right for you. This allows you to live in the mobile home for a while to make sure you want to own it. This can be a good option if you don’t have money to purchase a house straight away. 

This option gives you extra time to save up for the down payment without wasting money on rent. You will also have plenty of time to meet your neighbors and make sure you like the community. However, you need to make sure you look at the terms of the agreement carefully before signing it.

Good luck, and congratulations on your new property!

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