Home Partners of America is a company focused on helping people achieve their dreams of home ownership, when buying is not immediately possible. This is done through a lease with a right–to–purchase agreement.
What is a Lease with a Right to Purchase Program?
To explain the program it’s best to start with what it is not. Typically, when people think of rent–to–own they associate it with companies through which you rent furniture or household electronics, and each rental payment gets credited towards the purchase price. In reality, there are not any programs that work the same way in real estate.
In the lease with a right–to–purchase program, potential buyers choose a qualified home, then Home Partners of America purchases the home, and finally, the potential buyer leases the home and has a right to purchase the home at a predetermined price.
How can I benefit from this program?
There are several benefits to this program. The most important one is that you may be able to start your path to home ownership when either your credit or finances are not yet sufficient. Many potential buyers can get into a home while working on improving their credit history and securing a mortgage.
Another benefit is that it can let you have a better chance at planning and budgeting. 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. This is especially beneficial in a market with very low inventory, like the Phoenix metro-area has been in the past few years. 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. With Home Partners of America the purchase price is predetermined. In a market like Phoenix, 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 might be a possibility. And ultimately if home prices fall, as unlikely as that may be, the potential buyer is only responsible for the lease and can walk away after the first year with no penalties.
What are the requirements?
What are the requirements?
There are two types of requirements: Applicant requirements and Property requirements. First, let’s start with your requirements!
- $45,000 total household income
- No Open Bankruptcies
- No evictions in the last 3 years
- No felony convictions within the last 6 years
- No aggressive dog breed pets (including mixes)
- Have around 35-60 days before you need to move
The property requirements are much simpler and refer to the eligible properties that you can choose from. They are any single–family home, townhome, or patio home that is in Maricopa County that is considered move-in ready.
Our CENTURY 21 Northwest Agents are well trained in getting you qualified and helping you find a home you love. Give us a call today!
Written by Juan Rivas – Juan is a real estate agent at CENTURY 21 Northwest Realty.