Lease/Purchase involves the acquisition and rehabilitation of single family homes that are offered for
homeownership through a “rent with option to buy” model. Selected clients may choose a completed home from HOME, Inc.’s inventory of properties that meets their needs and financial abilities.
Clients participating in this model must rent the home and participate in supportive services for a minimum
of 12 months to a maximum of 24 months. Clients sign a month to month rental agreement and pay a deposit for their home. In addition clients enter into a supportive service agreement that outlines the steps they need to take to purchase the home. Steps typically include repairing credit issues, increasing credit scores, stabilizing employment, budgeting and debt management, and increasing savings.
Clients that successfully complete supportive services enter into a purchase agreement to assume the HOME, Inc.’s fixed rate, 30 year mortgage. Lease/purchase enables the client to use the “equity” built up through renting as the down payment. During the supportive services period clients develop savings to pay closing costs. Financial assistance in the form of short term forgivable liens reduce the purchase price to the client.
To be considered for HOME, Inc.’s Lease/purchase model of homeownership, a client must:
- Complete a homeownership readiness assessment
- Have at least one year of steady employment and rental history
- Have a credit score of at least 500
- Have an household income between 40% and 80% of the area median. Household income includes all adults residing in the unit.
|Family Size ||Minimum (40%) Income |
|Maximum (80%) Income |
| 1 || $20,125 || $40,250 |
| 2 || $23,000 || $46,000 |
| 3 || $25,875 || $51,750 |
| 4 || $28,725 || $57,450 |
| 5 ||$31,025 || $62,050 |
| 6 || $33,325 || $66,650 |
| 7 || $35,625 || $71,250 |
| 8 || $37,925 || $75,850 |