How It Works
House2Home helps qualified buyers purchase homes through several different methods. In addition, House2Home connects those in need of financial stability with a program that helps them achieve that goal. This can be in the form of credit building and repair, business or personal accounting and/or budget assistance.
Take a few minutes to learn how our Lease2Own, Contract2Own and Design&Buy agreements work, and contact us with questions.
Step 1 – House2Home qualifies individuals or families based on their income and money down (if applicable) through a one-on-one consultation.
Step 2 – Once qualified, buyers are presented with 3 purchasing options and matched with the one that most closely meets their needs and timing requirements. Those options are as follows:
Money down: $9,000+. Time frame: 1-3 months.
NOTE: Money down of 15%-20% allows for the buyer to: (1) Find any home that meets his/her financial and housing needs, and (2) have House2Home BUY it.
Time frame: 30-45 days with possession once home is selected.
Step 3 – The home is then sold to you, the buyer, on contract, via one of the methods listed below.
All House2Home agreements include a few basic components:
Your net income (after taxes) must be at least three times the monthly payment (e.g. if payment is $950/month, Gross income must be at least $2,850).
An applicant’s buying power is generally connected to the amount of money down. We pride ourselves in serving both those buyers with limited financial resources as well as those with up to 20% down on any priced home.
The buyer, in most cases, is responsible for the repairs and upkeep on the inside and outside of the home, though this may depend on the type of purchase contract.
The buyer agrees to a minimum two-year lease or contract (some exceptions may apply). Terms can extend up to 7 years, with term renegotiation at year 5.
House2Home includes a home warranty with every home purchase.
Lease2Own [Buying Method 1]
Also known as Lease Purchase, Lease Option or Rent to Own, this purchasing method allows buyers to purchase a home through the vehicle of a lease with an option-to-purchase contract.
- Monthly Payment: Fixed Payment for the term of the lease; includes taxes and an insurance estimate
- Money Down (Option Payment): Generally $4,500-$9,000 (non-refundable upon failure to exercise option-to-purchase)
- Deposit: Not required
- Rent Credit: Buyer receives a $75-$150 rent credit each month rent is paid. The total credit accumulated over the term of the lease (as well as the Money Down) can be used as the buyer’s down payment at closing when they exercise the option-to-purchase and receive traditional financing in 3-5 years.
- Utilities: Paid for by lessee(s)
- Due upon Move-in: First month’s rent, Option Payment and renter’s insurance
- Renters Insurance: Required
- Repairs/Upkeep: Buyer must maintain the home with needed repairs, but home improvements, alterations and upgrades must first be approved by House2Home.
- Late Payments: Late fees will be assessed for late payments. Repeatedly paying rent late may result in breach of contract-to-purchase.
Contract2Own [Buying Method 2]
Also known as Buying on Contract, Owner Financing or Contract for Deed, this purchasing method is very similar to the offerings of a traditional lending system. Qualifying for this program generally requires more money down but may provide additional tax benefits to the buyer.
- Monthly Payments are based on:
- Purchase price
- Money down
- Interest rate
- Monthly taxes
- Money Down: $10,000 minimum; generally 15-20% of purchase price
- Interest Rate: Varies
- Payoff Schedule: Based on 25-year mortgage term or amortization
- Repairs/Upkeep: Buyer is responsible for all repairs. Any renovations or remodels must be approved by the owner before construction begins.
Design&Buy Program [Buying Method 3]
Lease2Own and Contract2Own buyers with at least $7,000 down can take advantage of an opportunity to customize their dream home — a luxury that very few homeowners can normally afford. Buyers are presented with various design choices, ranging from new kitchen layouts to flooring options to paint color choices, etc. The changes made depend upon a defined budget, which is tied to the amount the buyer is willing to put down. A higher amount of money down allows for more detailed and extensive changes.
Ready to learn more about House2Home’s flexible purchase agreements? Please contact us at 319-804-8991 with questions, or complete the online application now.