Home Partners of America
Home Partners of America is a company that offers a lease with the right to purchase program. It does have specific guidelines, but it does work and helped many people to get into homeownership.
This program can work for a variety of people. For example:
- First time homebuyers that have never bought a home before
- For people have relocated and not sure which area or neighborhood to live in
- People who cannot obtain a mortgage now, but will in the future and want to live in a community with great schools
How Does Home Partners of America Work?
- Apply to Homepartners.com – a potential homeowner will fill out a pre-qualification application. Once the pre-qualification is approved, then the buyer will fill out a full application. When a full application is filled out, Home Partners of America will treat like any loan application. They will collect all you document, check your income and assets, have a credit and background check completed, etc. Once the application is approved, Home Partners will discuss the maximum monthly rent for which the home buyer qualifies for.
- Find a Home Partners Qualified home – You will work with your choice of Realtor. Once the home has been identified, Home Partners will try and purchase the home.
- Home Partners purchases the home – the potential buyers will have to sign a one-year lease and a Right to Purchase agreement.
- The Right to Purchase Agreement – allows the potential buyer the right to buy the home, at any time that they are living in the home, at a pre-set purchase price within five years. If they choose not to renew the lease, they can walk away without penalty.
Home Partners will provide a right to purchase price and rent for each lease term up to five years. A potential buyer must agree to the terms before an offer is made.
- Rent increases are 3.75% each year
- Purchase price increases are between 3.5-5% each year
- Move in date - minimum of 10 business days
- Annual house hold income of $50,000 or more
- Have stable employment
- No pending bankruptcy, history of eviction, acceptable criminal history
Potential Buyer Must Provide
- Full application for everyone 18 years or older
- Application fee of $75
- Income and asset verification
One the buyer gets approved then you can look at homes. The homes on the Home Partners of America website qualify for purchase. The property criteria are below.
- Single family home or fee-simple townhome
- The list price of the home must be between $100-$450,000
- No condo associations
- Cannot be a commercial or multifamily property
- Homeowners Associations are allowable on a case by case basis
- Pool are permitted in certain states
- Must be a traditional sale or FSBO – no distressed properties (Foreclosure, short sale, or auction).
- Must be in an approved community
- Minimum of two bedroom and no more than three acres
- Cannot have material deficiencies (major structural issues, aluminum wiring, etc.)
This is a basic list of the property criteria for more information click on the link below
3. Fence Policy
Once the potential buyer agrees to all terms:
- Home Partners will generate a signed contract and return it with a proof of funds
- The Realtor will make an offer on the home
- Home Partners pay cash, no appraisals, and closes quick
- They make offers at fair market value
Once the home is under contract
- The potential buyer signs a one-year lease and the right to purchase agreement
- Must provide a two-month deposit
- Home Partners schedules and pays for a home inspection
Once the home is purchased
- Home Partners will perform and make ready repairs or agreed upon renovations
- The potential buyer will provide the first month’s rent – it will be pro-rated from the date they move in
- The potential buyer may purchase the home at any time they are leasing the property for the predetermined price and must give a 60-day notice.
Some of the information came directly from the Homes Partners of America Website. This program does is not fit for everyone, but it can and does help a lot of people. This is just one of many different types of loan programs. See link below to get a better understanding of many other loan programs. If there are any questions, please contact me. I would be glad to help.