Home Partners of America offers residents of the Denver metro area a lease with the right to purchase program, more commonly known as rent to own.
Rent to own is a great option for many people who would like to purchase a home in the near future but may not quite ready to make the plunge quite yet. Rent to own may be ideal for someone who is going through a divorce, needs to save for a downpayment, is working on credit improvement or a new resident to Denver who may not be certain of the area they want to buy.
How it Works
After you are approved for the rent to own program by Home Partners of America, you can start shopping right away for homes that are currently for sale in your area along with a Home Partners of America Realtor. Once you find the house that you would like to call home, your Realtor will submit the home to Home Partners of America for approval. After approval of the house, Home Partners of America will make a competitive offer and purchase the house. You sign a one year lease to rent the house from Home Partners of America until you are ready to purchase it.
The Numbers
Home Partners of America requires the equivalent of two months rent as a deposit when the lease for the new home is signed. Plus the first month of rent is due upon move in.
You may decide to purchase the home from Home Partners of America at any time during your lease. The price to purchase the home goes up 5% per year. For example, if Home Partners of America purchased the home for $200,000 and you purchase it from them within the first year of your lease, you would purchase the home from them for $210,000. With the current growth rate in the Denver area in the double digits, this 5% increase is a great bargain.
What if I decide I don’t want to purchase the house?
No problem! If you decide you don’t want to buy the house, just keep renting the home through the end of your lease and you can walk away. You can move out after each one year lease term with no penalty. And as long as the home is in good condition, you will get your deposit back as well.
This is a rent to own great benefit to you. You have reserved the right to purchase the home at a yearly increase of 5% per year, but if the market drops, you lose nothing. You can walk away from the home and buy another home at the lower market values.
What if the house needs repairs or renovations?
When Home Partners of America is purchasing the home, they will inquire if the home needs any repairs or renovations and they will do repairs to the home before you move in, within reason. For example, if the carpet is not in good condition, it is not uncommon for Home Partners of America to replace the carpet.
Let’s say that the water heater breaks down after you move in, Home Partners of America will make sure it gets repaired. Until you purchase the home from them, they will make sure items are in working order.
Basic Approval Requirements
Annual household income of at least $50,000
Stable employment
No pending bankruptcy
Acceptable criminal history
For more information on this rent to own program, call Courtney Murphy today to get started!
Courtney is a Realtor servicing the Denver metro area.
