$2000 / 3br - Lease then OWN? this is just a sample home (Denver, Westminster, Boulder)
3BR / 2Ba house
What is the Lease with Purchase Right?
The Lease with Purchase Right provides residents transparent predetermined rental and purchase prices for each year of the program. Residents make a financial commitment to lease the house for only one year, and they are guaranteed five years of rental and purchase price certainty and an opportunity to purchase the home when and if they qualify for a mortgage. Here's how the Lease with Purchase Right works:
A prospective resident fills out a prequalification application online or with a real estate professional.
Once the applicant is prequalified and chooses to participate in the
program, they must agree to a full credit and background check.
2. Home Choice:
The approved resident works with an ERA Herman group licensed real estate agent to find a home that meets their needs and budget criteria.
After a home is chosen based on top school districts the agent can give the client an estimated monthly rent price and the final purchase price for each year of the lease.
3. Lease with Purchase Right Agreement:
The house is then purchased selected by the resident and makes any renovations necessary to meet safety standards. In addition, the resident can request upgrades to the home, like kitchen and bathroom renovations. If approved and completes the renovations, the cost is added to the final purchase price of the home. The resident then enters into a one-year lease and provides the first month's rent plus a security deposit (equal to two months' rent). The resident's financial commitment is limited to one year. The resident can renew the lease each year for a total of five years with annual increases to the monthly rent no greater than 3.75% per year.
4. Home Purchase:
We will work with the resident to build back their credit through regular rent payments and through credit counseling, which will soon be available, to help them qualify for a mortgage within the five-year lease term. Once a resident is approved for a mortgage, they can choose to purchase the home at the pre-determined purchase right price. The purchase right price is based on the initial cost of
the home to purchaser -- which includes the original sale price, closing costs, taxes,
fees, repairs and renovations. In year one of the lease, the purchase right price is 5% more than the initial cost of the home and increases annually by 5%.
Whom does the program serve?
The program is designed to serve responsible middle-class families who have a stable source of income but do not currently qualify for a mortgage. This could be due to the current credit environment or a previous negative credit event such as a short sale, foreclosure or personal bankruptcy. For many residents, this program provides an opportunity to stay in communities
where they might not otherwise and a home to rent or purchase, which means keeping kids in the same schools and staying near friends and loved ones.
Posting ID: 4105657649