Lease with a Right to Purchase Program
WELCOME TO A NEW PATH TO HOMEOWNERSHIP
Are you close to being able to buy a home but aren’t quite ready? Did you just move to the Florida and aren’t sure where you want to live? Do you need to rent right now but really want to buy a home in a couple years? Home Partners’ Lease with a Right to Purchase Program may be right for you.
Home Partners’ Lease with a Right to Purchase Program allows you to find a home that you want to rent from us initially, but may also like to buy in 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 three to five one-year terms, depending on the state, and you may purchase the home from us at any time at a predetermined price.
HOW THE PROGRAM WORKS:
Home Partners provides responsible households with a clear and transparent path to homeownership through its Lease with a Right to Purchase Program. This program provides 5 years of rent certainty with only a one-year financial commitment on the lease.
If you want to own a home but cannot currently qualify for a mortgage, or if you would prefer to rent a home now with the goal of purchasing it in the next three to five years, then this program may be for you. Home Partners doesn’t focus exclusively on your credit score. The full credit profile of your entire household is taken into account when they review your application to the Home Partners program.
As with a standard lease agreement, Home Partners requires you to sign a lease for a year and make a security deposit. Unlike a standard lease agreement, you will have renewal options providing [three/five] years of rent certainty and the right to purchase the home at a price established when you enter the Right to Purchase Agreement, in accordance with the terms of the Agreement. You can also select the home that you want to live in from those eligible and available for sale in communities Home Partners serves – enabling you to live in a neighborhood today where you might not otherwise find a suitable home to rent.
Home Partners buys homes in specific approved communities, so you can go to their website to see what communities are currently in their program. We will guide you in finding the right home in the right community in the Home Partners’ program. Once you approve the purchase price in your Right to Purchase Agreement, that is the price at which you may purchase the home during the term of the lease, in accordance with the terms of the Agreement, whether the home is later appraised at a higher or lower value. If you do not purchase the home as provided in the Agreement, Home Partners may rent or sell the home to others when your lease ends.
Your initial lease is for one year, so your financial commitment is limited to one year. Your lease is renewable every year for [three/five] one‐year periods, and you have the right to notify Home Partners if you don’t want to renew the lease. Your full security deposit will be returned as provided in the lease if you decide to leave the home at the end of a lease period and have been in full compliance with the lease.
RIGHT TO PURCHASE AGREEMENT
Your Right to Purchase Agreement gives you the right to purchase the home you selected from Home Partners at a predetermined price for every year of your lease, as long as you have been in compliance with the lease, Agreement and other documents. You are under no obligation to buy the home from Home Partners.
- 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 your Home Max Realty International REALTOR® 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 two 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 Florida, Georgia, Texas and Southern California.
Once you have selected a home, the Home Max Realty International 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.
Home Max Realty International
LICENSED REAL ESTATE BROKER
Palm Beach: 1-561-540-8122 Miami: 1-786-374-2385
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Her Global marketing skills stand out from other, No Doubt! ***** Review
“Alice Lonnqvist is one of the most knowledgeable real estate professionals I have ever had the pleasure to know. The level of personal attention and trustworthiness is unparalleled. I highly recommend her services, especially those who are looking to sell their home. Her Global marketing skills stand out from other, No Doubt!”
( Michael )
Very impressed with Alice’s knowledge and professionalism ***** Review
Alice was amazing to work with while buying our first home. She was very responsive and easy to contact. Alice offered her advice on negotiating price but was willing to offer whatever we decided. I was very impressed with Alice’s knowledge and professionalism.
( Jason )
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“Alice helped us through the whole purchase process and did a marvelous job. I will use her again.”
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“I have worked with many Real Estate Brokers in my career and I must say that Alice and Tapio are the best in the business working with. They know the business and can get the job done with ease.”
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