A New Path to Home Ownership: Lease with a Right to Purchase Program

Lease it. Love it? Buy it.

Are you almost ready to buy a home but not quite there yet? Did you just move to California and aren’t sure where you want to settle? Maybe you need to rent now but are thinking of purchasing a home in the next few years? The **Lease with a Right to Purchase Program** could be the solution for you.

How the Program Works

We've partnered with a private equity investor to help more people achieve homeownership. Our investor purchases qualifying homes that are on the market and rents them to approved applicants, giving you the flexibility to rent now with the option to buy later.

Applying

If you’re interested in homeownership but can’t yet qualify for a mortgage, or if you’d prefer to rent for now with the goal of buying in the future, this program might be perfect for you. Here's what you need to know about applying:

• Application Fee: $30 per applicant

• Minimum Requirements:

  • Credit score of at least 580

  • Combined household income of $60K to $75K

  • Stable employment for at least 6 months

  • Chapter 7 bankruptcies discharged; Chapter 13 bankruptcies in payment plan

  • No felony convictions, prior evictions, or outstanding apartment collections

  • Not in default on any current lease agreements

  • Debt-to-income ratio below 45%

Program Benefits

As with a standard lease, you'll sign a one-year lease and provide a security deposit. However, unlike a typical lease, you’ll enjoy **rent certainty for up to five years** and the **right to purchase** the home at a pre-agreed price. You also get to **choose your home** from eligible homes for sale in the communities we serve. This allows you to live in the neighborhood of your choice while working towards owning the home.

Key Considerations

With the guidance of your Licensed Real Estate Advisor, **Brenda Martinez**, our equity partner will only purchase homes that meet specific guidelines (move-in ready) and are typically listed on the Multiple Listing Service (MLS). The purchase price for homes can range from $200K to $500K. Once you agree on a purchase price through your Right to Purchase Agreement, that price remains fixed—whether the home appreciates or depreciates. If you decide not to buy, the equity partner may sell or continue renting the home when your lease ends.

Lease Agreement

The initial lease term is one year, so your financial commitment is limited to 12 months. However, you’ll have the option to **renew your lease each year** for up to five years. If you choose not to renew, you can walk away with your security deposit, provided you’ve complied with all the lease terms.

Right to Purchase Agreement

Your Right to Purchase Agreement locks in a predetermined price at which you can buy the home during the lease period. You’re never obligated to buy, but you have the option to do so at the price agreed upon at the start of your lease. This agreement gives you flexibility and peace of mind while renting.

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If you're interested in learning more or applying for this program, contact us for personalized assistance in finding the right home for you!