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Lease/Own

Are you close to being able to buy a home and aren’t quite ready? Did you just move to Georgia and aren’t sure where you want to live? Do you need to rent right now and really want to buy a home in a couple of years? Home Partners’ Lease with a Right to Purchase Program may be right for you.

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Program Summary

Home Partners provides responsible households with a clear and transparent path to homeownership through its Lease with a Right to Purchase Program. This program provides five years of rent certainty with only a one-year financial commitment on the lease.

Advantages

As with a standard lease agreement, Home Partners requires you to sign a lease for a year and make a security deposit. Unlike a standard lease agreement, you will have renewal options providing five years of rent certainty and the right to purchase the home at a price established when you enter the Right to Purchase Agreement, in accordance with the terms of the Agreement. You can also select the home that you want to live in from those eligible and available for sale in communities Home Partners serves – enabling you to live in a neighborhood today where you might not otherwise find a suitable home to rent.

Lease Agreement

Your initial lease is for one year, so your financial commitment is limited to one year. Your lease is renewable every year for five one-year periods, and you have the right to notify Home Partners if you don’t want to renew the lease. Your full security deposit will be returned as provided in the lease if you decide to leave the home at the end of a lease period and have been in full compliance with the lease.

How it Works

Prospective Household applies for approval
Prospective Household applies for approval.
Household finds a Home Partners qualified home
Household finds a Home Partners qualified home.
Home Partners buys the qualified home, household leases from Home Partners
Home Partners buys the qualified home, household leases from Home Partners.
Household has the right to purchase the home
Household has the right to purchase the home.

Advantages

Standard Residential LeaseHome Partners Lease with a Right to Purchase
Sign A LeaseX X
Financial Commitment Limited to 1 Year X X
Security Deposit Required X X
Rental Rate CertaintyTypically 1-2 Years5 Years ( 3 Years in TX )
Right to Purchase X
Mutual Responsibility to Maintain Home X
Right to Purchase the Home at a Predetermined Price X
Pick from Many* Homes Available X

*Based on qualifying factors

The Math

Total Cost

Total Cost is the price Home Partners pays for the home, closing costs, make ready and repairs/maintenance costs. Total Cost is used to determine the resident's Right to Purchase prices. A sample is highlighted below:
Purchase Price$200,000
Closing Costs *$3,000
Make Ready and Repairs/Maintenance Costs$7,000
Total Cost$210,000

* Includes costs such as transfer taxes, attorneys' fees, title insurance, other acquisition costs, etc.

Monthly Rent Increases

Each year, a resident's Monthly Rent increases by no more than 3.75% over the previous year’s Monthly Rent.For example, if the Monthly Rent for Year 1 is $1,400 per month, the increase for the next year is $50/month (i.e., $1,400 x 1.0375)*.

Monthly Rent

Year 1$1,400
Year 2$1,450
Year 3$1,500
Year 4$1,560 (Does not apply in Texas)
Year 5$1,620 (Does not apply in Texas)

Right to Purchase Price Increases

Each year, the Right to Purchase Price increases by 3.5%-5% (depending on the region).In the example, if the Total Cost of the home is $210,000 and if the Right to Purchase increases by 5% (i.e., Prior Year Purchase Right Price x 1.05)* then the Purchase Right Price for Years 1-5 is as follows:
Year 1$220,500
Year 2$231,500
Year 3$243,100
Year 4$255,300 (Does not apply in Texas)
Year 5$268,000 (Does not apply in Texas)
There are additional costs that the resident will incur if they exercise the Right to Purchase such as closing costs to purchase the home, including transfer taxes, attorneys' fees, title insurance, and the cost of a mortgage loan. As a result, actual total costs to exercise the Right to Purchase will vary.

* Rent will round to the nearest $10. Right to Purchase Price will round to the nearest $100.