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Lease with a Right to Purchase Program
FAQs
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 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 us to search for homes that meet
our purchasing criteria. Generally, this means that the home should be:
1. Located in an approved community (home is
displayed on www.homepartners.com and is not adjacent to features that
may negatively impair value);
2. Listed for between $100,000 and $450,000 in most states, though exceptions apply;
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;
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. Do you own the homes shown on your website?
No. The homes shown on our website are listed for sale in the
markets in which we operate. This list of homes automatically feeds into
our website from a listing service and is updated on a regular basis.
However, we cannot filter for certain criteria such as whether a
townhome is or is not fee-simple so there is a possibility that a home
shown on our website does not meet our minimum eligibility criteria. The
information on available homes shown on our website is for
informational purposes only and cannot be guaranteed by Home Partners.
8. 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.
9. 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.
10. 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.
11. 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.
12. 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.
13. 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.
14. 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.
15. 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.
Participation in Home Partners' program is available
solely for consumer purposes and subject to approval. To exercise a
Right to Purchase after entering into a lease, a resident must obtain
their own financing such as a mortgage loan from a third party lender or
pay cash. Home Partners is not a mortgage company, does not have any
obligation to provide or arrange a mortgage loan, and cannot guarante