Rent to Own with our "HomeNow" Program
About "HomeNow"
Are you among the millions of US homeowners who recently lost a home due to foreclosure? Or maybe you have suffered bankruptcy or had a change in employment forcing you to downsize. But just because you have bad credit now doesn’t mean you can’t repave the path to homeownership.
Through our “HomeNow” program, we offer you a rent-to-own option, putting you in your dream home now, while your credit rebounds. While you are “renting,” you are really investing in your own future home.
Overview
Our Rent-To-Own program provides you the unique opportunity to put your past credit issues where they belong: in the past. We help you build your future by getting you in the home of your dreams now, while you rebuild your credit and can once again be a happy and confident homeowner.
The beauty of our program is that we help you choose and purchase the home of your choice. We help you house hunt, purchase the home, and even make any necessary repairs and energy-efficient upgrades. We then establish a lease agreement with an option to purchase in three to five years, once your credit has healed. Monthly rent is set up front and purchase price is predetermined. A portion of rent will be set aside in a "savings fund" that will be used towards your down payment and closing costs. There will be no surprises as everything is set up front.
This program will help you cure your credit, move you into the home you want, and get you back on track to home ownership.
How It Works
It all starts with your dream home. Once we have located the home for you (whether through working with our team or with your identified real estate broker), we will work through price negotiations, purchase the home, and make any necessary repairs and energy efficient upgrades for you.
We will then create a pre-approved lease, where the monthly rent is established and the purchase price is set (based on current, local market conditions) with an option to buy in three to five years. During your “rebuilding years,” 15% of the rent paid over the term of the lease will be set aside in a savings account and ultimately be used for the down payment and/or closing costs once you purchase your home from us.
The purchase option can be exercised between years three and five of the lease contract. The purchase price will be set up front based on current local market conditions and forecasts. All lease-option agreements and home purchases are subject to approval by TFL Homes and proper credit qualification by applicant.
It all starts with your dream home. Once we have located the home for you (whether through working with our team or with your identified real estate broker), we will work through price negotiations, purchase the home, and make any necessary repairs and energy efficient upgrades for you.
We will then create a pre-approved lease, where the monthly rent is established and the purchase price is set (based on current, local market conditions) with an option to buy in three to five years. During your “rebuilding years,” 15% of the rent paid over the term of the lease will be set aside in a savings account and ultimately be used for the down payment and/or closing costs once you purchase your home from us.
The purchase option can be exercised between years three and five of the lease contract. The purchase price will be set up front based on current local market conditions and forecasts. All lease-option agreements and home purchases are subject to approval by TFL Homes and proper credit qualification by applicant.
Your Responsibility
Here are the basics you will need to know to get started in our Rent-To-Own program:
- Pay $5,000 for Option Consideration.
- Pay first month’s rent — monthly rent payment equal to .9% of purchase price.
- Provide security deposit in amount of $1000.
- Pay $25/month for a home protection warranty.
- Maintain the home and yard in good condition and provide non-warranty repairs as needed.
- If applicable to your home of choice, make payments for HOA and for any HOA assessments on property other than the property taxes.
Qualifications
The qualification process for TFL’s HomeNow program requires an application to be filled out. The application is sent to a 3rd party lender who will review employment history, income levels, and your ability to obtain financing in three to five years. (FICO scores are not used in the approval process)
Employment
Applicants will need to show a stable job history with their current employer.
Income
A gross monthly income after all monthly debt obligations will typically need to be a minimum of $3,300/month. Allowable income includes: Social Security; Retirement Income; Permanent Disability; Income received from salaried Position; Self-employment income (Net income after all deductions will be used); and Child Support (with documentation the support has been received for a minimum of 12 months and will continue for 7 years). Non-Allowable Income: Unemployment and Temporary Disability.
Credit Approval Criteria
A history of good standing credit leading up to your hardship. If you are in the process or have been through a bankruptcy, foreclosure or short sale you may still qualify for this program. If there are late payments that occurred during your hardship you may also qualify for this program. Late payments that occurred outside of the hardship period will need to be minimal and have an acceptable explanation. Previous homeownership is not required.
Factors that May Prevent Program Approval
Late payments or collections that occurred after your hardship period. A history of late payments with no hardship. If you are in the process of a Chapter 13 bankruptcy or consumer credit counseling they will need to be completed and discharged before applying for the program.
Solutions
Even if you don’t qualify for our HomeNow program, you might qualify at a later date. If you have found the house you want, we may be able to purchase the home and rent it to you under a Lease Agreement. When the time is right you can re-apply for our HomeNow lease-purchase agreement. The benefit is that you will already be in the neighborhood and home that you want.
Applicants will need to show a stable job history with their current employer.
Income
A gross monthly income after all monthly debt obligations will typically need to be a minimum of $3,300/month. Allowable income includes: Social Security; Retirement Income; Permanent Disability; Income received from salaried Position; Self-employment income (Net income after all deductions will be used); and Child Support (with documentation the support has been received for a minimum of 12 months and will continue for 7 years). Non-Allowable Income: Unemployment and Temporary Disability.
Credit Approval Criteria
A history of good standing credit leading up to your hardship. If you are in the process or have been through a bankruptcy, foreclosure or short sale you may still qualify for this program. If there are late payments that occurred during your hardship you may also qualify for this program. Late payments that occurred outside of the hardship period will need to be minimal and have an acceptable explanation. Previous homeownership is not required.
Factors that May Prevent Program Approval
Late payments or collections that occurred after your hardship period. A history of late payments with no hardship. If you are in the process of a Chapter 13 bankruptcy or consumer credit counseling they will need to be completed and discharged before applying for the program.
Solutions
Even if you don’t qualify for our HomeNow program, you might qualify at a later date. If you have found the house you want, we may be able to purchase the home and rent it to you under a Lease Agreement. When the time is right you can re-apply for our HomeNow lease-purchase agreement. The benefit is that you will already be in the neighborhood and home that you want.