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Home Partners of America 馃彙 Rent to Own Homes Program Explained | MELANIE 鉂わ笍 TAMPA BAY - YouTube
Channel: Melanie Loves Tampa Bay
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finding a home that is a lease with the
option to buy can be really difficult to
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find close to impossible in some of the
more popular areas however leasing while
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you get to know your new city or if
you're repairing your credit or just
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want to save more money for your down
payment might be the best option for you
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so what do you do if you don't want to
live in a cramped apartment for a few
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years
stay tuned I may have an option for you
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hey everybody this is Melanie Atkinson
realtor with Smith & Associates in
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beautiful Tampa Bay Florida and today
I'm going to talk about a lease purchase
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program called Home Partners of America
I'm not affiliated with this program in
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any way but I do think it offers people
that qualify a really interesting option
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if they wanted to lease before they
purchased a home let's get straight into
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it so what is the home partners of
America lease purchase program say you
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want to own a home in a nice
neighborhood but you just aren't ready
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to buy yet maybe you want to be in a
good school zone and there's really
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limited rentals for you to pick from or
maybe you're looking to repair your
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credit and it'll take a few years to do
that but in the mean time you want to
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live in a nice house home partners of
America purchases homes that are
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currently for sale and leases them back
to you so this opens up a whole lot more
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options of homes for you to rent because
now you can look at homes that are
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currently for sale you get to pick the
house they purchase it and you rent it
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from them at any time during that lease
you can purchase that home for a
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predetermined price now nothing is that
simple but that's the basic premise of
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the program don't worry we will get into
all the details so who qualifies to be a
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renter with home partners of America
there is an application process that
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prospective tenants will have to go
through home partners of America will
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look into your debt to income ratios
credit score's housing history in
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employment history they're looking for
households with an income of $50,000 or
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more have stable employment no recent
history of eviction no pending
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bankruptcy and an acceptable criminal
history once you have been approved as a
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tenant they will then give you the
maximum amount of monthly rent that you
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qualify for at that point you can then
call your knowledgeable realtor in start
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house
so which properties qualify for the
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program home partners of America won't
buy you a million-dollar house
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sorry the maximum price for a home in
the state of Florida is $400,000 and
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that does vary depending on the state
you live in they will consider a
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single-family home or townhouse the home
must have at least two bedrooms and be
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in an approved community they want to
purchase homes that are in good
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condition it will not purchase short
sale or foreclosure homes
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the house has to go through an approval
process just like you the tenant has to
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go through one your realtor will submit
the house you like to home partners and
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then they will start the process of
approving that home so now you are
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qualified in your house is qualified
what happens next then home partners of
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America will attempt to purchase the
property
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assuming they come to terms for the
seller you will then sign a one-year
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lease with home partners to rent that
home after they closed on the house and
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do the necessary repairs so what about
the rent price home partners will
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determine the rent price and you will
know that price prior to signing your
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lease agreement each year your rent will
raise by no more than 3.75 percent you
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can rent the home for up to five years
in the state of Florida and again that
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does vary by state based on my research
it doesn't look like their rent prices
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are out of sync with other homes for
rent in the area what about the security
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deposit the PO partners requires a
security deposit that is equivalent to
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two months rent this is a refundable
deposit if you move out as long as you
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leave the home in good condition if you
purchase the home your security deposit
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will be credited towards that purchase
can I bring my pets yes there is a three
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pet maximum with a weight limit of a
hundred and eighty pounds total and
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there's also a few breed restrictions
neighborhood HOAs might restrict pets
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further so make sure you know what the
neighborhood allows as well you will
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have to put down a $300 deposit per pet
this is non-refundable if you decide to
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stop leasing the home at any point but
if you purchase the home it is
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refundable so how do I purchase the home
you can purchase the home at any time
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you will need to give home partners
60-day notice that you intend to
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purchase the home and also home partners
is not a mortgage company so you will
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need to pick a lender
you are provided purchase price
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information prior to signing the lease
so there should be no surprises on the
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price that you're going to pay so here's
how they figure out the total cost say
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they purchased the home from the seller
for $200,000 they charge you for the
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closing costs say around $3,000 and they
also charge you for any make ready
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repairs say for example you wanted the
carpet replace and that was a total cost
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of $4,500 home partners also has a
$2,500 maintenance fee that they add to
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the total this maintenance fee is to pay
for any maintenance that your house may
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need during the terms of your lease so
that brings the total cost of your home
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to two hundred and ten thousand every
year the purchase price rises by five
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percent of your total cost again this
varies by state the state of Florida is
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five percent so after renting for a year
the purchase price that you pay is five
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percent more than the total cost that
comes to two hundred and twenty thousand
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five hundred dollars year two is then
five percent more than year one's cost
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that would be two hundred and thirty one
thousand five hundred dollars and so on
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up to five years if the prices in your
neighborhood happen to rise more than
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five percent per year
you're not gonna pay more for your house
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however if they don't rise more than
five percent a year they're not going to
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give you a discount either so what are
the pros and cons to this program the
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biggest Pro to this program is that it
allows people who want to live in good
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neighborhoods the ability to do so
without having to purchase the home
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right away this benefits new residents
who want to get to know their community
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or people who need to repair their
credit or want to save more money for a
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down payment the program is transparent
and all the costs and fees are outlined
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prior to going into a lease agreement
your only obligation is to rent a house
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for one year if you're a seller and
you're having a hard time selling your
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house you may want to look into this
program it may attract more buyers home
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partners will pay a fair price for your
house so the cons mostly revolve around
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the fees associated with buying the home
home partners is going to roll the
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closing cost over to you and also
increase the price automatically five
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percent a year if for some reason the
house doesn't appraise when you go to
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purchase it that can be an issue for you
you'll either have to bring more money
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down to make up the difference or you'll
have to wait until the house does
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appraised that's definitely something
you want to talk with your Realtor about
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when you're looking for homes you were
also paying for the make ready
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improvements but I don't necessarily see
that as a con because most new
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homeowners are gonna put some money into
their house to make it ready for them
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anyway
also they require two months deposit
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which might be a little hard for some
people to get if you currently own a
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home in another state and you're trying
to qualify with home partners to lease a
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house here it may be difficult to
qualify with their debt to income ratio
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I hope this was informative for you
lease purchasing is so helpful for
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certain people but it's also so
difficult to find check out the
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description for the home partners
website to see if they have the program
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in the area that you're looking to lease
or buy if you're interested in this
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program in the Tampa Bay area give me a
call or email me and I'm happy to help
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you if you're looking for something else
to watch on my channel check out the
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video called should I rent before I buy
it goes right along with this topic
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thank you so much for watching
with love Melanie
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