D1: RENT-TO-OWN PROGRAM - An Alternative Path to Homeownership
Some call it rent-to-own, but this is a program that makes it possible for you to build your wealth while living in your dream home. This great rent-to-own program takes a portion of your rent payments and applies it to your savings to purchase the home later.
PLEASE NOTE...We want to make sure to educate you on which program is the right one for you. There are two components on how the rent payment calculations work with this program, 1) the Rent amount, and 2) the Savings portion that goes into a savings account that's ready for you when you are ready to buy. Therefore, this program does have higher monthly rental payments than our other H1 program due to how the program works in that you are paying part of your rent payments that go into a savings account towards homeownership. We are currently working with the leasing company to bring these rent rates to be more competitive with the other program. Until then, if keeping your rental payments the lowest they can be is your goal, we recommend looking more at the H1 program for that purpose at this time.
If you are just looking to rent only and do not intend to buy the home, then the other H1 rental program on our page would most likely be the best fit for you.
We find this program works well for those who:
✅ Are looking to get into a true rent-to-own program
✅ For those that don't have perfect financial pasts
✅ You intend on being able to own the home with your own financing...some day in the future.
✅ Want a portion of their rent payment to count towards savings for when it comes time to own.
✅ Are looking for an alternative to bank financing or may not qualify for a mortgage
✅ That need to rent right now but really want to buy a home in a couple of years?
✅ Divorce or separation and your attorney is advising that you can't buy right now.
✅ Those afraid of future housing market conditions
✅ Those who are just looking for flexibility!
How it works:
1️⃣ Apply in minutes
It’s FREE, fast, and won’t impact your credit score (soft credit pull). We send you a secure portal to start your application when you tell us you are ready. Once you qualify, receive a home budget and we help you start shopping for that right home.
2️⃣ Choose your dream home
Don’t settle for less. With our program, you get to pick the home, and our program buys it for you. (Here is a list of Minnesota Counties this program is currently eligible for)
3️⃣ Rent while you prepare to buy
You’re not in this alone. Rent the home from the program and build your savings while we help you get mortgage-ready down the road.
Build your savings
Saving up can be tough. That’s why we built monthly savings into the program–so you can build up your down payment little by little while you rent the home. Buy the home from us whenever you’re ready, or walk away and cash out your savings. About 75% will go towards rent, and 25% will go into home savings. Over a 3 year period those savings will add up to 5-10% of the homes value for your downpayment.
Keep your flexibility
We get that life happens. This program gives you the benefits of homeownership without a 30-year commitment. We keep things flexible for your changing life. A professional management company takes of all major maintenance and repairs
Come as you are
Your finances are unique. That can make mortgage approval tricky. Not to worry. We fight for everyone to get a shot at homeownership. No judgment, just solutions.
Make your home your own
Paint the walls, change the kitchen cabinets, or update the flooring. We want it to be your house.
🆗 Minimal FICO of 550 - Only look at the Experian Credit Score
🆗 Steady employment in the last 6 months - this doesn't have to be with the same employer
🆗 Proof of $2,000 in Bank Account - for your intial home savings contribution
🆗 No bankruptcy or eviction in the last 12 months
🆗 Debt to income ratio of up to 50% - meaning your total debt payments equal 50% or less of your income.
🆗 Co-signers are OK.
🆗 This will not be eligible with any housing vouchers program
1. Down Payment
You put 2% of the home price down. (If above 650 credit score, you have the option to do 1% down) If the home is $250,000 that means $5,000 down. This money goes towards your "equity credits"
2. Rent for up to 3 years
Every month you pay rent it saves towards your down payment. We save you up to 10% equity payments so you can get a mortgage later with a nice downpayment.
3. Buyback - Own the home or walkaway
Buy the home back at any time. If you don't want to buy the home back by 3 years, we'll cash out your home savings. Leave the home at any time and keep all your equity minus a 2% re-listing fee.
🏡 The home needs to be move-in ready. It cannot be a fixer-upper.
🏡 Price needs to be under $400,000
🏡 Heating and cooling systems needs to be less then 18 years old
🏡 Roof needs to be in good condition, No foundation issues
🏡 Property needs to be located on 2 acres or less of land
🏡 Must be rental compliant (city and homeowners associations sometimes restrict these)
🏡 Home needs to be located in one of these Minnesota counties:
Hennepin County, Ramsey County, Dakota County, Anoka County, Washington County, Scott County, Wright County, Carver County, Sherburne County, Chisago County, Isanti County, Le Sueur County, Mille Lacs County, Sibley County