Dreaming of owning a home in Orange County but finding it tough to get a mortgage? Rent To Own Homes in Orange County could be your answer to homeowners’. This smart idea helps you move from renting to owning, even if your credit isn’t great yet. It’s like renting with a plan to buy later, making homeownership possible when traditional mortgages might not work for you.
What is a Rent To Own Home?
A rent to own home is when you rent a house but can buy it later if you want to sell it. It’s like renting with a plan to own the house someday. Here’s how it works: You agree with the owner on a price for the house upfront and how long you’ll rent it, usually 1 to 3 years.
While you’re renting a property, part of your monthly rent payment might go towards buying the house. This way, you’re not just paying rent—you’re also saving up to own the home in the future. It’s a good option if you’re not ready to buy a house yet but want to work towards owning one someday.
Lease Option Agreement
When you decide to pursue a Rent To Own Homes in Orange County, you’ll enter into a lease option agreement. This lease-back agreement outlines the terms and conditions for both renting and the option to buy the home later. Here’s what to expect:
- Agreement Details: You and the seller will agree on a price for the home and decide how long you will rent it. This period is usually between 1 and 3 years.
- Option Fee: At the start, you pay an option fee. This is usually between 1% and 5% of the home’s price. This fee gives you the exclusive right to buy the home at the agreed price during the rental period.
- Monthly Rent Payments: Every month, you pay rent. Sometimes, a part of your rent goes towards the future purchase of the home. This helps you build up money for buying the house.
- Building Credit and Savings: During the rental period, you have time to improve your credit score or save more money for a down payment. This makes it easier to get a mortgage when you’re ready to buy.
- Buying the Home: At the end of the rental term, you can choose to buy the home at the agreed price. If you decide not to buy, you can walk away without a penalty, but you usually lose the option fee and any rent credits.
This lease option agreement provides buyers with a clear path from renting to owning, making it easier to achieve your dream of homeownership in Orange County.
How Does Rent To Own Work?
Here’s how the process typically unfolds:
- Agreement: You and the seller agree on a price for the home and how long you’ll rent it (usually 1-3 years).
- Option Fee: You pay a fee upfront, usually 1% to 5% of the home’s price. This fee lets you buy the home later at the agreed-upon price.
- Rent Payments: Each month, you pay rent. Some of this money might go towards buying the home if you decide to.
- Building Credit: While you rent, you can work on improving your credit score or saving for a down payment. This can help you get a mortgage later on.
- Buying the Home: At the end of the rental period, you can choose to buy the home at the agreed price. If you decide not to buy, you can walk away without a penalty, though you usually lose the option fee and any rent money that would have gone towards buying the home.
Top 3 Rent To Own Properties in Orange County
The city of Orange is a fantastic example of what residents love about Southern California. With an equal balance of laidback SoCal character, plus all the charm of a small town, Orange has an appeal all its own.
No wonder, there are a lot of rental property investors eyeing the area for a “rent to own” business. Living in Orange County puts you practically right next door to Anaheim, with its world-famous attractions like Disneyland, ball games at Angel Stadium, and dozens of concert venues at your fingertips. The beach is only thirty minutes away, and a commute to downtown LA only takes about an hour.
If you’re browsing for a rent to own property around the Orange, here’s a guide list for you to choose:
1. Single Home Property at Wharfside St, Newport Beach, CA 92657
A beautiful, executive home in the prestigious gate-guarded community of Crystal Cove is ready to be owned by you. The home features a spacious, open floorplan with windows and french doors throughout, plus a comfortable family room wherein you get to enjoy a cozy fireplace and rich wood floors and opens up into a wonderful gourmet kitchen that includes beautiful granite counters, custom marble backsplashes and Viking appliances.
Its expanded Seabourn Plan Four offers two lower level bedrooms, making it perfect for guests or visiting family. Apart from that, its spacious master suite includes a retreat and private balcony, perfect for summer evenings.
This home is ideally situated at the end of a private cul-de-sac and offers stunning views of the ocean, Catalina Island, evening lights and spectacular sunsets from almost every room. Backyard includes several conversation areas, outdoor dining opportunities and a custom putting green. Short distance to beach, shopping promenade, restaurants and parks.
2. Kensington Park St, Tustin, CA 92782
Don’t miss this opportunity to own a beautiful home in the highly coveted Columbus Square community! If a quiet and peaceful neighborhood with great walking paths, plenty of parking spaces, and wonderful amenities is what you’re browsing, then this property is definitely best for you!
Shopping plazas, restaurants, and elementary school are all within a short walking distance.
It offers a Rent To Own Homes in Orange County option: $3,500/month $300 rent credit (nonrefundable, added to down-payment when purchasing the property) 2% option fee (nonrefundable, added towards down-payment when purchasing the property) $810,000 sale price (guaranteed price within contract date) 1 or 2-year lease term ONE additional 1-year renewal option.
3. Macarthur St, Santa Ana, CA 92707
This is a seller financing property. Its second floor 2 bedroom Condominium is a legal one bedroom unit. It is a few walks away from the pool, sport courts, and parking which means that it is peaceful and quiet. The overall complex has a large pool, a pool clubhouse which can be rented for meetings/parties, there is fitness center, six tennis courts, a basketball court, five Jacuzzis, Bar-B-Ques and picnic tables throughout, walk to South Coast Plaza, close to 405/55/71 freeways, 10 mins to beach, public transportation, schools, parks. Great rental area, extremely safe 24/7 security. Unit comes with one covered and one uncovered parking space, with extra storage.
ORANGE COUNTY STANDARD APARTMENT RENT COSTS
As of October 2021, the average apartment rent in Orange, CA is $2,095 for a studio, $1,708 for one bedroom, $2,166 for two bedrooms, and $2,768 for three bedrooms. Apartment rent in Orange has decreased by -0.1% in the past year.
| Beds | Avg Sq Ft | Avg Rent |
| Studio | 477 | $2,095 |
| 1 BR | 672 | $1,708 |
| 2 BR | 969 | $2,166 |
| 3 BR | 1,281 | $2,768 |
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