Lease Purchase Program

Our Lease Purchase Program is thoughtfully designed to assist first-time homebuyers who may not yet be ready to purchase a home. Through our comprehensive Pre-Purchase Housing Counseling services, we provide the guidance and support needed to help clients reach their homeownership goals.

The program offers a structured pathway to homeownership by allowing participants to rent the HOME, Inc. home they intend to purchase while working towards mortgage readiness. Homebuyers in the Lease Purchase Program have 12-18 months to prepare financially and to qualify for a mortgage, ultimately enabling them to transition smoothly from renting to owning their dream home.

Understanding How the HOME, Inc. Lease Purchase Program Works

To be eligible:

Household's total gross income must be 60% AMI* or below
Must have at least one (1) year of continuous employment
Must have at least one (1) year of stable rental history
Must have an established credit score
Credit Payment History - Cannot have more than three 30-day late payments.
Debt-to-income Ratio cannot exceed 25% of gross monthly income
Cannot have over $1000 in outstanding liens/collections
Must be able to become mortgage ready within 12-18 months

*Area Median Income (AMI) 2025

This number is based on the total number of people in your household and the total gross income of your household.

60% AMI

1 Person: $48,100.00

2 People: $55,000.00

3 People: $61,850.00

4 People: $68,700.00

5 People: $74,250.00

6 People: $79,750.00

7 People: $85,200.00

8 People: $90,700.00

**First-Time Homebuyer Definition:
An applicant is considered a first-time homebuyer if they have not had an ownership interest in a principal residence in the past three years. This definition also includes:

Individuals who have never owned a home.
Single parents who only owned a home jointly with a former spouse.
Displaced homemakers who previously owned only with a spouse.
Individuals who own or have owned a mobile home not permanently affixed to a foundation in accordance with local regulations.
Individuals whose only prior homeownership was a property that did not meet applicable building codes and could not be brought into compliance at reasonable cost.
Be a military member with discharge of other than dishonorable.

Selection: After the application window closes, our team will review all applications within five (5) days using an objective scoring system ensuring accuracy and fairness to assess a family’s financial and housing stability, ability to benefit from the program, and readiness for future homeownership.

If multiple families score and qualify equally, a randomized lottery may be used to select the final applicant.

The applicant selected through this process must sign a Purchase Agreement within five (5) business days after being notified of selection to confirm participation. If this is not completed, the next applicant will be contacted.

Applicants are evaluated using the Homeownership Opportunities Service Recommendation Checklist, with scoring based on:

Income level

Must be 60% or below Area Median Income (AMI)

Employment history

At least 1 year of continuous work

Rental history

At least 1 year of Stable Rental History

Credit history and score

Credit must be established and payment history cannot have more than three 30-day late payments

Debt-to-Income Ratios

Debt cannot exceed 25% of gross monthly income

Ability to afford the future mortgage payments

Expected housing payments should not exceed current rent by $300+

Bankruptcy History
Completion of Homebuyer Education (Not required but will add extra points to scoring)

A General Timeline for a Lease Purchase:

30 Days Before Groundbreaking for Construction: Application opens.

At Groundbreaking: Families are notified if selected.

First Week: Attend an info session to discuss and sign the Lease Purchase Agreement.

Monthly & Quarterly: Meet with a Housing Counselor to review goals and participate in financial coaching.

3 Months Before Move-in: A full income verification must be completed.

At Move-in: You start leasing the home.

6–12 Months After Move-in: You will work towards mortgage pre-approval with help from HOME, Inc. Housing Counseling**

**If the participant has not made sufficient progress to become mortgage-ready, our Executive Director and designated Housing Counselor will intervene with a support plan.

Final Step (12-18 Months After Move-in): You’ll sign the Purchase Agreement and then work with your lender to close!

Before closing, applicants will undergo a second income verification to ensure ongoing eligibility. Following the successful purchase of the home homeowners will be invited to attend a Post-Purchase Class to support long-term success in homeownership.

Application Period: Applications open about 30 days before construction begins on the new home. Submit a complete Lease Purchase application for each property of interest. Lease Purchase homes and applications can be found on our Available Homes page.

Required application information includes:

Household composition and size.
Documentation of current total household income.
Employment, income and rental history.
Consent to participate in ongoing financial coaching and readiness reviews.
Commitment to pursue homeownership within 12-18 months of move-in.
Disclosure of whether the applicant qualifies as a first-time homebuyer*, as defined by HUD.

*Applicants must be prepared to provide documentation to support their first-time homebuyer status if requested.

First-time homebuyer defined under "Eligibility" tab.

Lease Purchase Participants Agree to:

All selected applicants will be required to sign a legally binding Lease Purchase Agreement with HOME, Inc., facilitated by the Housing Counselor.

As part of the purchase agreement process, applicants must:

Sign a Lease Purchase Agreement at the time of selection.
Agree to monthly housing counseling and quarterly goal reviews.
Participate in full income verifications at key milestones.
Maintain good standing on rent, utilities, and property care.
Completion of RentWise class is required prior to leasing the home/move-in.
Upon receiving mortgage pre-approval, the participant will sign a Purchase Agreement with HOME, Inc. outlining purchase price, closing date, and final conditions.

Prior to moving in, if a selected applicant becomes ineligible, withdraws, or fails to meet purchase agreement requirements, HOME, Inc. will immediately contact the next eligible applicant based on the original scoring and lottery process. If there are no remaining eligible applicants available, the application process for that home will be reopened to the public.

Support During and After the Process

HOME, Inc. provides ongoing help during the Lease Purchase Program, including:

A Homeownership Support Packet and financial coaching for becoming mortgage ready
Monthly coaching/check-ins with a designated counselor.
Credit-building, debt reduction, and savings support.

Post-Move-In & Purchase Completion Support:

Following move-in, participants will continue to receive support aimed at ensuring successful transition to homeownership. This includes:

Home maintenance training
Post-purchase counseling after closing if needed

HOME, Inc. is committed to ensuring long-term success for each Lease Purchase family, providing both accountability and encouragement at every step. By setting clear expectations and offering educational support, HOME, Inc. ensures that every selected homebuyer is well-prepared not only to purchase their new home, but to sustain homeownership for the long term.

How long is the application window open?

The application window for a home opens the day we break ground for construction and will be open for 30 days. See our Available Homes here!

I applied, does that mean I get to purchase this home?

Applying does not guarantee selection for the purchase of one of our homes.

Once the application window closes, our Property Development Team will review all applications within five (5) days using an objective scoring system ensuring accuracy and fairness to assess a family’s financial and housing stability, ability to benefit from the program, and readiness for future homeownership.

The team will select the highest scoring and most qualified applicant for the purchase of the home. If multiple families score and qualify equally, a randomized lottery may be used to select the final applicant.

Can I apply for more than one home?

Yes! You can apply to each home you are interested in. But please only apply to each home once. Submitting multiple applications for the same home can delay the review process.

I need to update my application, what do I do?

Please contact our team to update you application. Email propertydevelopment@homeincdsm.org or call 515-243-1277. Please do not submit another application. Submitting multiple applications for the same home can delay the review process.

Will the timing of my application affect my score?

No. All applications submitted within the 30 day window receive the same consideration with our objective scoring system to ensure fairness for all applicants.

Could I take a Homebuyer Education Class before applying to get those additional points?

Yes! We always encourage potential homebuyers to take Homebuyer Education to better prepare them for the homebuying process and homeownership! We offer in-person and online Homebuyer Education classes. Or you can take a class through another organization. You will need a certificate of completion to submit with your application.

If the application window is open and you plan to take a Homebuyer Education Class within those 30 days to earn more points and increase your chances to be selected - please wait to submit your application until after you complete the course. The application period lasts 30 days.

How will I know if I was selected or not?

Applicants who are selected will receive an email outlining their next steps. This will include scheduling an appointment to sign the Purchase Agreement.

Applicants who are not selected will be notified and provided with additional resources. These resources include information about upcoming Homebuyer Education classes, links to one-on-one counseling services, and guidance on preparing for future homeownership opportunities - whether through HOME, Inc. or other organizations.

Lease Purchase Program

Understanding How the HOME, Inc. Lease Purchase Program Works

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