Are You Looking For A New Path To Home Ownership?
Let Me Expand Your Home Rental Options
If now isn’t the right time to buy a home, but you’d like more attractive options than what’s currently available in the rental market, I can introduce you to an innovative new Lease with the Right to Purchase Program*.
How It Works
Step 1: Apply For Approval
After receiving an invitation to apply from a Realtor®, you start the process of filling out a pre-qualification application that checks key issues. It is required that anyone who is 18 years or older and will reside in the home complete both the pre-qualification and full application. If you are approved, you will be required to submit a full application for a full credit and background check. Once your full application is approved, Home Partners will outline the maximum monthly rent of the home for which you qualify.
Step 2: Find A Qualified Home
Once approved, we will work together to find you a home in an approved community. Once a home is identified and approved by Home Partners, Home Partners will attempt to purchase the home- the outcome of which will depend on certain conditions being met such as agreeing on a purchase price with the seller, a satisfactory inspection, attorney review of the purchase contract, and other closing conditions being satisfied.
To see if a list of reasons that homes may be disqualified from the program, please visit the List of Automatic Property Disqualifiers.
You can also see if a home not listed on the website is in an approved community by visiting the address checker.
Step 3: Home Partners Buys The Qualified Home & You Lease The Home
Home Partners will buy the home from the seller and then lease it to you upon which you will pay a monthly rent. You have to lease the home for 1 year upto 5 years with the option to purchase at any time during this period.
Step 4: You Have The Right To Purchase The Home
Once HPA buys the home, you have the option of leasing the home for up 5 years and then you can purchase the home from them at the specified market price.
Ready To Begin Your Path To Home Ownership?
Let’s see if you qualify
Total Cost is the price Home Partners pays for the home, closing costs, make ready and repairs/maintenance costs. Total Cost is used to determine the resident’s Right to Purchase prices. A sample is highlighted below:
Purchase Price ………………………………………………. $200,000
Closing Costs*……………………………………………….. $3,000
Make Ready and Repairs/Maintenance Costs…………….$7,000
Total Cost …………………………………………………….. $210,000
*Includes costs such as transfer taxes, attorneys’ fees, title insurance, other acquisition costs, etc.
Monthly Rent Increases
Each year, a resident’s Monthly Rent increases by no more than 3.75% over the previous year’s Monthly Rent.
For example, if the Monthly Rent for Year 1 is $1,400 per month, the increase for the next year is $50/month (i.e., $1,400 x 1.0375)*.
Year 1 ………$1,400
Year 2 ………$1,450
Year 3 ………$1,500
Year 4 ………$1,560
Year 5 ………$1,620
Right to Purchase Price Increases
Each year, the Right to Purchase Price increases by 3.5%-5% (depending on the region).
In the example, if the Total Cost of the home is $210,000 and if the Right to Purchase increases by 5% (i.e., Prior Year Purchase Right Price x 1.05)* then the Purchase Right Price for Years 1-5 is as follows:
Year 1 ………………………………. $220,500
Year 2 ………………………………. $231,500
Year 3 ………………………………. $243,100
Year 4 ………………………………. $255,300
Year 5 ………………………………. $268,000
There are additional costs that the resident will incur if they exercise the Right to Purchase such as closing costs to purchase the home, including transfer taxes, attorneys’ fees, title insurance, and the cost of a mortgage loan. As a result, actual total costs to exercise the Right to Purchase will vary.
* Rent will round to the nearest $10. Right to Purchase Price will round to the nearest $100.
1. What is the Lease with a Right to Purchase Program?
Our Lease with a Right to Purchase Program (the “RTP Program”) allows you to find a home that you want to rent from us initially, but who may also like to buy at any time within the next three to five years.
We believe that there are many households who may be thinking about buying a home but for whatever reason would like to rent at the current time.
You can lease the home for up to three to five years, depending on the state, and you may purchase the home from us at any time at a predetermined price in accordance with the Right to Purchase agreement.
2. Who is eligible for the RTP Program?
We have certain minimum criteria for our program. Your household must have an annual income of $50,000. You must have stable employment. We cannot accept you into our program if you or anyone in your household has a history of eviction or a pending bankruptcy. Everyone in your household will be subject to a criminal background check.
3. How do I apply to the RTP Program?
Every member of your household who is 18 years of age or older must complete the Pre-Qualification Application and the Full Application. The Full Application requires certain information, including residence and employment history, for each member of the household. You also must provide income and asset verification for each member of the household whose income is to be considered in determining the rent approval amount in order for your application to be considered complete.If you are moving from a different state or starting a new job, we will need confirmation of your new job and income.
We take several factors into consideration when reviewing an application, which include household income, rent-to-income and debt-to-income ratios, rental and housing history, employment history, criminal history, and FICO® scores.
We will usually make a decision on your application within 1 to 3 business days of receiving all required information.
4. How much does it cost to participate in the RTP Program?
We have a one-time Application Fee of $75 per household that must be paid online as part of the application process. This Application Fee covers all applicants in the household and is nonrefundable.
Please note that in California, the Application Fee is $45 if there is only one applicant in the household and $75 if there are two or more applicants in the household.
5. Why might my application be denied?
We take several factors into consideration when reviewing an application, which include household income, rent-to-income, and debt-to-income ratio, rental and housing history, employment history, criminal history, and FICO® score. We consider the profile of the entire household when reviewing an application. If your application is denied, you will receive notification in writing.
6. How do I find a home once I’m approved?
You should work with your REALTOR® to search for homes that meet our purchasing criteria. Generally, this means that the home should be:
1. Located in an approved community (based on high schools and not adjacent to features that may negatively impair value);
2. Listed for between $100,000 and $550,000 in most states, though exceptions apply in California, Oregon, Virginia and Washington;
3. Located on a lot no more than three acres with a minimum of two bedrooms;
4. A single family home or fee-simple townhome; condo associations, condo interests, commercial and multi-family properties are not eligible for the RTP Program;
5. A traditional sale. Short sales, auctions, and REOs are not eligible for the RTP Program; and;
6. Free from material deficiencies;
7. No guest houses/ in-law suits with separate entrances;
Please note we only purchase homes with swimming pools or other water features in certain states. At the current time, we purchase homes with pools only in the following states: California, Florida, Georgia, Oklahoma and Texas.
Once you have selected a home, the REALTOR® must submit it to us online.
7. Is there a required deposit?
Yes. Generally, we require a deposit equal to two months’ rent. This deposit is not applied towards your rent. If you decide to leave the home at the end of any one-year lease term and you have been in compliance with the terms of the lease and return the home in the same condition it was in when you moved in (normal wear and tear excepted), the full deposit will be returned to you or credited to the purchase price if you buy the home. The full deposit (less any outstanding charges owed to Home Partners) is also returned to you if you exercise your Right to Purchase the home.
8. How long does it take from when I select a home to when I move in?
On average, it takes approximately five to six weeks from the time we enter into a purchase agreement for a home until the day you are able to move in. There are a number of variables that may affect the move-in timeframe, including the length of negotiation with the seller leading up to when we enter into a purchase agreement, what the home inspection reveals with respect to required repairs, and the renovations you request. We will keep you informed throughout the entire purchase and renovation process so that you are aware of this timing.
9. What happens after I move in?
You are our tenant, and we are your landlord. You have entered into a lease with us for one year and are bound to the terms of that agreement. We will collect your monthly rent and perform any necessary repairs that are our responsibility after you move in.
10. Are the monthly rent payments that I make applied to the purchase price of the home?
No. Monthly rent payments are not applied to the purchase price of the home. If you decide to exercise your Right to Purchase, you must pay the full predetermined price as set forth in the Right to Purchase Agreement.
11. How do I exercise my Right to Purchase?
You may notify us at any time that the Lease is in effect that you would like to exercise your Right to Purchase. However, you must provide us with that notice in writing at least 60 days before you want to complete the purchase. Once you notify us that you want to exercise your Right to Purchase, we will contact you to get the process started.
12. Can I buy a home in the middle of a lease term or do I have to wait until the end of the year?
You can exercise your Right to Purchase at any time during your Lease. However, you must provide us with written notice of your intent to exercise at least 60 days before you want the sale to close. In addition, the closing date must occur before the end of the applicable Lease term.
13. Do you provide me with a mortgage or other financing?
We are not a mortgage company and we will not provide or arrange a mortgage loan for you. We cannot guarantee that you will be able to obtain a mortgage loan if and when you wish to exercise the Right to Purchase.
14. Can I have pets in my home?
We do allow up to three pets (cats or dogs) with a max weight limit of 180 pounds total. For dogs, you must not have a Doberman, Pitbull, Rottweiler or Mastiff. We do not allow for other animals such as pigs, horses, chickens, goats, etc. There is a $300 per pet fee in most states. This fee is due with the required deposit and is refundable in the event you purchase the home. Otherwise, it is not refundable.
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