Frequently Asked Questions
The ResiAmerica Home Purchase Program offers a distinctive path to homeownership, bypassing traditional mortgage hurdles. We purchase your chosen home and lease it to you with an option to buy at today's price anytime in the next 15 years. Each month, part of your rent is applied towards the purchase price, ensuring your payments are an investment in your future. This program empowers you with immediate control over your home, offering the flexibility to renovate, repair, or even sell the property during the lease period.
No, there is no penalty for early termination. However, please be aware that we will keep the option fee. We will refund your rent credits if you terminate your lease early.
Our program is designed with simplicity in mind:
- Get approved based on stable income and a down payment.
- Choose any home on the market. You can use your own agent or we can help you shop.
- We buy the home for you; you lease it from us with an option to purchase.
- At the start of the lease, you'll pay an option fee, which is at least 10% of the home's price. This fee secures your exclusive right to purchase the home at a locked-in price and is fully credited towards the purchase if you decide to buy.
- A portion of your monthly rent goes towards the home's purchase price.
- Enjoy full control—renovate, repair, or sell the home during the lease term.
Our program is designed for individuals and families who have a stable income and can provide a down payment of at least 10% of the purchase price. It's particularly suited for those who might find traditional mortgage routes challenging, such as business owners, freelancers, recent immigrants, or anyone with a unique credit history. We believe in making homeownership possible for those who are ready and willing to invest in their future, regardless of their past credit challenges.
Here are some examples of people who might be a good fit for our program:
- Recent immigrant with no social security number or ITIN
- Business owner with inconsistent income
- Commission based jobs with variable income
- Plenty of assets but temporarily short on income
Yes, and No. When you compare our program to buying a home with a mortgage, the costs might look a bit different. Our program is really for people who might have trouble getting a regular loan from a bank. Yes, our monthly rent might be a bit higher. This is because we offer special benefits, like making sure the price of the home won’t go up for 15 years. This means even if houses get more expensive, yours won’t. Your rent also stays pretty much the same, except for some small changes if property taxes or insurance costs go up. Think of it this way: even though you pay a little more each month, you get to live in your home right away without waiting to qualify for a bank loan. Plus, you can buy the house at the price we agree on now, not a higher price later. And you can make the house your own, fixing it up or even selling it if you want to. For many people, the chance to move into a home now and the promise of a stable price are worth the extra cost. It's a way to start owning a home when other options might not be available.
The price we agree on for the home is set when we buy it. It includes what we paid for the house, plus a fee of 5% for the transaction, and the costs of closing the deal. Once this price is set, it won’t change, even if house prices in the area go up.
Our program isn't exactly like a mortgage, but we’ve designed it to feel similar. At the beginning, a small part of your rent—what we call a "rent credit"—goes toward owning the home. As time goes on, this amount gets bigger. If you decide not to buy the house, we give this rent credit back to you.
Yes, you can buy the home any time you want. You can pay us bit by bit in refundable payments that we keep safe until you’re ready to buy. Or, you can get a mortgage loan to pay off the price we agreed on.
If you choose not to buy, we’ll give back any rent credit or extra payments you made. But, the 10% fee you paid at the start to lock in your purchase price won’t be returned.
If you decide to sell the house, we can help. You can pick any real estate agent you like, or use our services at ResiAmerica for a lower fee. We’ll handle the paperwork and help you sell the house. At the end, the buyer pays the money to the title company, which then pays us any amount you still owe, and you get the rest, minus any closing costs.
To qualify for our home purchase program, applicants need to provide a down payment of at least 10% and demonstrate the ability to afford the monthly payments. This financial readiness can be shown through a combination of savings and/or consistent income. Importantly, our program is inclusive; we do not require applicants to have a Social Security number, ITIN, or US permanent residency, making it accessible to a wider range of aspiring homeowners.
We do not set a minimum credit score for our program. Instead, we conduct our own evaluation to ensure that applicants are a good match for our program, focusing on their savings and income levels. This assessment is tailored to understand the financial situation of each applicant, whether they earn a regular wage or are self-employed, to ensure they can successfully participate in the program.
Absolutely. Our program is designed with flexibility in mind, specifically to accommodate individuals who may face difficulties securing a traditional bank loan. This includes self-employed individuals and those with non-traditional income sources. We recognize the value and potential of every applicant, regardless of how they earn their income.
During the application process, you'll be asked to provide documentation that verifies your financial stability. This includes bank statements and proof of income, such as pay stubs, tax returns, or other relevant financial documents. Additionally, a government-issued ID, like a driver's license or passport, is required to confirm your identity. These documents help us create a comprehensive understanding of your financial background, ensuring that our program is a good fit for your homeownership journey.
Our program primarily focuses on standard homes in suburban areas that blend well with their surroundings. While we do consider homes in rural areas on a case-by-case basis, these may necessitate a larger down payment. We do not finance mobile homes or properties within communities that impose rental or age restrictions.
Prior to purchase, we conduct a thorough home inspection to ensure the property's condition meets our standards. You'll have the opportunity to review the inspection results with us, and we can negotiate with the seller for any necessary repairs or a credit for repairs, much like a traditional home buying process.
As the lessee, you're responsible for all routine maintenance and repairs on the property. However, if a significant structural issue, not identified during the initial inspection, arises, we will provide support to address it. Day-to-day upkeep, nonetheless, falls under your responsibility.
Absolutely. While we'd like to be informed about the changes and review any significant improvements, we're open to you personalizing the home through renovations or additions. Your enhancements are encouraged as long as they align with our guidelines and enhance the property's value.
Beyond the home's purchase price, a 5% transaction fee is added to the final purchase price, not required upfront. You're also responsible for all closing costs, including title company and attorney fees. After the initial purchase, there are no ongoing fees except for your monthly rent, part of which contributes to a "rent credit" towards eventual homeownership.
Your rent is slightly higher than a traditional bank mortgage, factoring in taxes and insurance. This accounts for the higher risk since our clients might not qualify for bank loans. Our model includes a rent credit system, starting small and increasing over time, designed to simulate the experience of paying down a mortgage. If you opt not to buy, this rent credit is refunded.
The program is set up with three year lease terms. At the end of each lease term, you can walk away and receive any rent credits back. Upon the renewal for the next three years, there will be a 5% rent increase. This is much less than a regular lease which increases 3-5% PER YEAR on average. Also, the rent will increase if property taxes or insurance rates go up. It will increase by the amount that the property taxes and insurance increase only.
The option fee will be applied toward the purchase price if you decide to purchase the home.
We will try to work with you as best as we can, but we will handle missed payments just like we would with a regular tenant. If the rent is not paid, we will have no choice but to file an eviction. However, any rent credit or additional payments made toward the purchase price will be refunded if you're evicted or cancel the lease.
The only way to ensure this is to make additional payments as you are able to save money. Or, at the end of the lease, you could sell the house. Or you might qualify with a regular mortgage and you can finance the house with a bank loan.
