Colorado Rent-to-own service offers new option for cash-strapped first-time home buyers
The booming Colorado Springs real estate market, bidding wars and cash buyers can make it tough for first time home buyers to compete. But, a new Rent-to-own program is now trying to help those buyers break into the market. Rent prices are going up but this program puts renters in the drivers seat!
The Home Partners of America’s new Ownership Conversion Pilot Program is essentially a new twist on the old rent to own program.
Finding a rent-to-own option can be challenging in a market in which prospective home buyers are competing for limited listings.
Homeowners are more likely to want to sell rather than rent out their property to a potential future buyer when they know the property will be snapped up if they put it on the market immediately. Alternatively, some homeowners who decide that they want to be landlords are holding on to their property for rental income and long-term appreciation rather than committing to a sale in a year or two.
At the same time, first-time buyers struggling to pay down student-loan debt and to save for a down payment may have dwindling hope for homeownership when prices go up. Prices rose nationwide by 5.8 percent between December 2016 and December 2017, according to the National Association of Realtors.
Home Partners applicants can choose from any home on the market $500,000 or less that’s right for them and also meets their criteria. Households must make at least $50,000 a year to qualify for the program.
“I’m a huge fan of the program,” Licensed Broker Robert Nichols of HomeSmart Realty Group said. “I meet a lot of buyers who aren’t ready to buy, usually there are credit issues and this opens the doors for them.”
Nichols says once a client is approved for the program a purchase price is established.
“It’s based on property taxes, HOA’s, things like that. So we look at the price point, what they want and then go out searching like any other buyer and agent,” Nichols said.
Home Partners will then buy the home and lease it to an applicant with pre-determined rent. That rent will increase annually but at a set rate tenants agree on. The company will then provide a tenant with the right to purchase the home down the road at a preset price.
“There’s a lot of first time home buyers who are not prepared to purchase today, perhaps they don’t have the down payment funds that are necessary, or maybe financial circumstances does not deem them ready, this will serve those consumers in the market,” Ayoub Rabah, Senior VP of Marketing for Home Partners of America said.
The company’s pilot program was first tested out in Texas but has since expanded to 40-plus real estate markets across the country.
“We’re very excited about the housing market in Colorado Springs, there’s a lot of opportunity and need,” Rebah added.
For Richard and his family of four, the program seems to be a good fit. It made it possible for them to get into a home in Colorado Springs.
“They really just made the dream become more of a reality for us,” . They are hoping to purchase the home in the near future.
“To be able to get into a home that it would take you years to do, to come home to it every day, it’s a reminder why we’re going to work, what we’re working for,”.
Making Homeownership a Reality for More People working together, we can find you the right home and put you on the path to becoming a homeowner.
THE PROCESS IS SIMPLE AND TRANSPARENT:
1. Apply for approval
2. Find a qualified home
3. Home Partners buys the home, you lease it from them
4. You can purchase your home from Home Partners
It’s a great option if you:
- Want to live in a single-family home, in a great community with quality schools
- Are a first-time homebuyer who’s cautious about buying a home now, but may want to buy in the future
- Are a home seeker in the process of relocating but aren’t sure where you want to settle down
- Can’t obtain a mortgage right now
Basic Requirements to Qualify**:
- Annual household income of $50,000+
- Credit Score of 550+ (Transunion)
- Clean background – No Felonies
- Stable Employment
- No History of eviction or landlord issues
- No pending bankruptcy
Contact me today at 719-659-5599 to learn more about this innovative Lease with Right to Purchase program. Unlike many rent to own programs or lease options, there is no obligation to buy and no non-refundable option fees.
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