Lease with a Right to Purchase Real Estate
WHO MIGHT BE RIGHT FOR THE PROGRAM
- First-time homebuyers who are cautious about buying a home now, but want to be able to purchase a home in the future
- Potential Homeowners who recently relocated and are unsure which neighborhood to live in
- Potential Homeowners who cannot obtain a mortgage today, but who want to live in a community with great schools
BENEFITS FOR APPROVED CLIENTS
Transparency: Upon entering the program, clients are given the monthly lease and purchase price information each year for up to five years, so they can plan for the future.
Choices: You get access to the MLS listings in the communities we serve, expanding your selection of homes.
Value: You get an affordable lease and a pre-set purchase price each year for up to five years. Also there are no hidden fees or non-refundable deposits.
Control and Flexibility: You have the right to purchase the home at any time during your residency at the pre-set price. If the home value appreciates above this price each year, you realize a financial benefit. If the value of the home declines, you can choose not to renew your lease and walk away without penalty.
HOW IT WORKS
We’ll help you get registered with our partner and Apply
- Prospective residents start the process by filling out a Pre-Qualification Application that checks key issues. If the Pre-Qualification Application is approved, the applicant will be required to submit a Full Application for a full credit and background check. If a Full Application is approved, Home Partners will outline the maximum Monthly Rent of the home for which the prospective resident qualifies.
Find a qualified home
- You will work with one of our licensed professionals to find a qualified home.
- Once a home is identified and approved, our partner 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.
Our partner purchases the qualified home
- Once the offer for the home is accepted by the seller, you will be required to sign a one year Lease for the home as well as a Right to Purchase Agreement.
Right to Purchase
- You have the right to purchase the home at any time during your residency at the pre-set purchase price. If you choose not to renew the lease, you can walk away without penalty.
GUIDELINES FOR SEARCHING FOR A HOME TO BE PURCHASED
- Home must be located in an approved community (high school zone ranked in the top 50 %)
- Home price must be between $100,000 and $550,000
- Minimum of two above grade bedrooms on a lot of three acres or less
- Single family home or fee-simple townhome
- No short sales, REO or auctions
- No material deficiencies (i.e. major structural issues, pervasive mold, etc.)
BASIC REQUIREMENTS OF PROSPECTIVE RESIDENT
- Annual household income of $50,000+
- Stable employment
- No history of eviction or other landlord issues
- No pending bankruptcy
- No disqualifying criminal history