As anyone paying attention to the news can attest, we’re enduring some unprecedented times right now. As the world around us becomes more volatile and uncertain, many people are wondering if now is the right time to jump into homeownership. For whatever reason, if you decide now isn’t the right time to buy, you still have options that may serve you down the road. It’s called renting to buy and it’s a great fit for a lot of would-be homeowners. Here we’ll check out some of the most frequently asked questions about this type of arrangement.
- What is the Lease with a Right to Purchase Program?
The Lease with a Right to Purchase Program (the “RTP Program”) allows you to find a home that you want to rent initially, but you may also like to buy at any time within the next five years.
- Who is Eligible?
There is a certain minimum criteria for the program. Your household must have an annual income of $65,000. You must have stable employment. You cannot be accepted into the program if you or anyone in your household has a history of eviction or a pending bankruptcy, and everyone in your household will be subject to a criminal background check.
- What type of Homes Are Eligible? Generally, rent-to-own homes should be:
- Located in an approved community
- Listed for between $100,000 and $500,000, though exceptions apply
- Located on a lot no more than three acres with a minimum of two bedrooms
- A single-family home or fee-simple townhome
- A traditional sale. Short sales, auctions, and REOs are not eligible for the RTP Program
- Free from material deficiencies
- No guest houses/ in-law suite with separate entrances
If you think renting to own could be an ideal option for you, the first thing you’ll want to do is apply for the RTP program. Give Metrowest a shout today – we’d be happy to help you start the process!