There are several benefits to this program. It allows those who may want to buy but may not be 100% ready to yet. It's great for those who are:
Another benefit is that you are not limited to rentals. You have access to the Multiple Listing Service (MLS) listings through your REALTOR (that's me!), so you have a selection to all qualifying homes that are for sale. .
Plus, one of the great things about Home Partners of America is that when you sign the first year of your lease, you will know how much the rent is going to be for the next five years, with no hidden fees or non-refundable deposits. This not only gives you a better chance at planning and budgeting, but it's also especially beneficial in a market with very low inventory, like the Phoenix metro-area is in right now. Not to mention rent payments have increased at a very fast pace due to high demand and low inventory.
A final benefit is the potential for equity buildup. Home ownership has always been better than renting due to the potential for building equity in the home. In a market like the Phoenix metro area, home prices have risen substantially in the past few years. If prices continue rising at the same rate, the potential for the home to be worth more than the predetermined purchase price from Home Partners of America might be a possibility. And if home prices fall, even though that is pretty unlikely, the potential buyer is only responsible for the lease and can walk away after the first year with no penalties.
Requirements
There are 2 types of requirements: Applicant requirements and Property requirements. Let’s start with your requirements!
The property requirements are much simpler. They are any single-family home, townhome, or patio home that is in Maricopa County that is considered move-in ready. Please refer to the property requirements located below under the FAQ's section under the "How do I find a home once I’m approved" for more details.
How It Works:
1. Apply Online
Step 2. Find a Home.
Congratulations! It's time to find your home!
3. Home Partners buys the home. You lease it and have the right to buy it later, should you wish.
4. You Have the Right to Purchase (RTP):
Here are some FAQ’s from Home Partners of America that explains a bit more about the program:
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.
Who is eligible for the RTP Program?
We have certain minimum criteria for our program. Your household must have an annual income of $45,000. 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.
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.
How much does it cost to participate in the RTP Program?
We have a one-time Application Fee between $75-$99 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.
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.
How do I find a home once I’m approved?
You should work with your REALTOR® (that's me - Leanne King) to search for homes that meet our purchasing criteria. Generally, this means that the home should be:
Once you have selected a home, your REALTOR® must submit it to us online.
Is every home on the website approved?
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.
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.
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.
The deposit is due within 2 business days of Home Partners going under contract with the seller.
If Home Partners does not receive the deposit by the deadline, Home Partners will terminate the transaction and disqualify the resident from further participation in the Home Partners program.
Can I have pets in my home?
Yes. You are allowed a maximum number of three (3) pets (cats or dogs) weighing less than 180 pounds in total combined weight.
Home Partners expressly prohibits the following dog breeds (including partial mixes of same): Doberman, Pitbull, Rottweiler or Mastiff. Further, livestock/farm animal pets such as pigs, horses, chickens and goats, aquariums over 20 gallons, and exotic, venomous and verminous pets, are not allowed.
There is a $300 nonrefundable per pet fee, refundable upon purchase of the home. Please note that although assistance animals are excluded from Home Partners’ pet policy requirements, supporting documentation is required to qualify as such.
How does the website calculate the rent and will it decrease if Home Partners purchases the home for less than list price?
The rent shown on the website is based off the list price, location, age, HOA fees, taxes, and home characteristics (e.g. pools and basements). The rent amount will not fluctuate with the purchase price of the home.
How long does it take from when I select a home to when I move in?
On average, it takes approximately 5 to 6 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.
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.
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.
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.
How does Home Partners calculate the Year 1 Right to Purchase amount?
The Year 1 Right to Purchase Price is calculated by multiplying the Estimated Acquisition Cost by the Price Adjustment Factor (ranging from 3.5-5% depending on market), and then by adding $2,500 (repair and maintenance reserve).
Acquisitions costs include the purchase price of the home, closing costs, make-ready costs, HOA transfer fees (if applicable) and any tenant-requested renovations.
The Right to Purchase Price increases by the amount of the Price Adjustment Factor each year for the next four years.
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.
Do you provide me with a mortgage or other financing?
No. 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. If you need a lender, Apryle Borst will be happy to refer you to one.
*Subject to change. **Subject to applicable laws. Visit www.HomePartners.com for more details, exceptions, and additional information. ***Maximum may vary in select markets.
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