RENTAL PROGRAM ELIGIBILITY CRITERIA:
The program investor considers the credit, background, and income of all full-time household members 18 years of age and older who are on the initial application. The application fee is $99 per household application (NOT per person)
Here are the general eligibility requirements for potential residents:
🆗 The minimum rent is $1,350 and the maximum is $5,000. The investor will purchase homes up to $450k in Minnesota.
🆗 The household must make a combined minimum of $45,000 gross income per year.
🆗 The FICO score: 580 or higher from TransUnion credit bureau (score still does not guarantee approval if other conditions aren't met below)
🆗 For Self-employed individuals: there are great options available. See the income documentation section below
Residents are allowed a maximum number of three (3) pets (cats or dogs) weighing less than 180 pounds in total combined weight. The following dog breeds (including partial mixes of same) are prohibited: Doberman, Pitbull, Rottweiler or Mastiff. Further, livestock/farm animal pets such as pigs, horses, chickens and goats, aquariums over 20 gallons, and exotic, venomous and verminous pets, are not allowed. In most states, there is a $300 non-refundable per pet fee and/or pet rent may apply. Please note that although assistance animals are excluded from the pet policy requirements, supporting documentation may be required to qualify as such.
If one of the restricted breeds is a Service Animal, the client must have them registered and provide documentation to HPA.
If the client(s) can pass the eligibility and pre-qualification questions below, then they are able to proceed and apply to seek approval. Upon application, they will need to show asset and income verification such as 2 recent paycheck stubs, and an asset/bank account to show they have twice the rental amount of rent being requested. (Example: If you want to rent a place for $2,200 a month, you will need to show a minimal of $4,400 available in an account) Once the applications department reviews their data, then they will get an “Approved” with rent amount. Then you can look at properties within that approved rent amount.
Please note: this list is not exhaustive and additional factors may be considered.
1. Do you or any household member have an open/unsatisfied Chapter 7 bankruptcy?
2. Have you or any household member been evicted within the past 3 years?
3. Have you or any household member had a landlord collection/judgment filed and not dismissed within the past 3 years?
4. Do you or any household member have any unsatisfied apartment/rental collections exceeding $250 that originated within the past 3 years?
5. Do you or any household member have any unsatisfied repossessions that originated within the past 6 months?
6. Do you or any household member have more than one outstanding collection, charge-off and/or currently past due account (excluding medical and student loans) with a cumulative unpaid balance of $1,000 or more within the past year?
7. Are you or any household member on any OFAC sanctions lists, including the Specially Designated Nationals and Blocked Persons lists, or are a registered sex offender or sexual predator or otherwise subject to reporting requirements of any state, territorial, or tribal sex offender registry?
8. Has any household member had a felony conviction(s) within the last 6 years?
9. Do you or any household member intend to carry out any business, profession, or trade of any kind from home where clients will visit?
10.Does your household make a minimum gross income of $45,000 per year?
11. Do you or any household member have any pets or other animals that will reside in the home/on the premises?
12. Will your household be able to provide a deposit equal to twice your desired monthly rent amount upon signing your lease agreement?
13. I understand that the process can generally take 35-45 days from the time we goes under contract to buy a home until I may be able to move in. I have sufficient time in my moving plans for this general time frame.
If you answered ‘No’ to questions 1 - 9 and ‘Yes’ to questions 10 - 13, this indicates that you may be a good candidate to apply for the Lease
Purchase Program pending a review of your full application and required documents.
Foreclosures: We consider a foreclosure or short sale as a factor in our review of the application. It is not in and of itself an automatic disqualifier. Client doesn’t need to wait for any period of time after a foreclosure or short sale before applying to the program. In fact, they can apply to our program while still in the process of going through a foreclosure or short sale.
REQUIRED INCOME VERIFICATION DOCUMENTATION
• 2 most recent pay stubs
Please note that if the household is relocating or an applicant has secured a new position, we also require an offer or transfer letter on the employer's letterhead,
identifying the income and start date, in PDF form, and signed by the employer.
Self-Employement / Contract Employment
• Most recent tax return and 2 most recent personal or business bank statements
Please note that if the self-employed position was acquired recently and a tax return is not available, then EIN documentation will also be required. If the
household is relocating and the business is location-based, we also require bank statements establishing that such business has been operating for at least two
months in the state to which the household is relocating (as listed on application).
Investment Rental Income
• Most recent tax return, executed 1-year lease, together with document establishing rent has been paid on time for the last 2 months
Annuity / Retirement / Pension
• 2 most recent benefit statements
• 2 most recent pay stub (unless transferring, in which event 1 recent pay stub and transfer letter are required)
Social Security / VA Disability
• Most recent award letter
Child support / Alimony
• Court documents awarding support, together with document establishing support has been paid on time for the last 2 months
• Trust document and 2 most recent bank statements
Lump-Sum Prepayment of First Year's Rent plus Security Deposit
• In lieu of income verification documentation set forth above, an applicant may elect to pay the entire first year’s rent and security deposit, which shall be due and payable at the time Home Partners executes a purchase contract for such applicant’s selected home. To qualify for this option, the applicant must show available funds with a current bank statement.