Q: What are the differences between your Rentals, Rent-To-Own (“RTO”)’s and Seller Financed properties?
A: Our rentals are regular one-year lease rentals. Our RTO’s are the same properties and the same leases, but reserved for those folks who want to take the next step towards home ownership. This means our tenants come to an agreement up front that they will be saving for a down payment in their monthly rent towards the purchase of that house. It also locks in the future purchase price so any further market appreciation is thier's to keep. With our third option of Seller Financing, the tenant actually owns the home, making their payments directly to HPF (instead of a bank). They take on home ownership maintenance as well as enjoy interest deductions and any future appreciation and equity.
Q: What if I am in the Rent To Own program for a number of years and decide that I do not want to finance / own the house?
A: If you decide, for whatever reason, you do not wish to get your own financing and purchase the home from HPF, you may elect to cancel the agreement anytime after three years and receive 50% of your deposit back, Home Path will retain 50% as a cancellation fee. No returns are made prior to three years. This is a minimum three year commitment.
Q: As an RTO customer, what happens to my deposit money?
A: Your deposit money saved throughout the program will be treated as a credit / down payment / equity when you qualify for a traditional mortgage in the future. RTO customers usually qualify for our Seller Financing first, which also transfers that deposit money into the down payment and begins home ownership.
Q: What is the interest rate that you charge for Seller Financing?
A: All our properties are financed based on our Renters' estimated time to achieve conventional financing as well as current rates from our private investors. We offer fixed rates, no adjustments to the rate, no balloons, no prepayment penalties. We use a national loan servicing company who will also escrow for property taxes and insurance, just like most banks do.
Q: When can I get my own bank financing?
A: You may do so at any time, no penalties are incurred. When you are ready to secure a traditional mortgage simply notify HPF and the purchase documents are created and the transaction is scheduled for closing. Purchase price is set at time of loan approval based on the current appraised value. the exception to that is if you are already in our RTO program, in which case the purchase price has already been agreed to in writing.
Q: What fees do you charge?
A: Other than the $20 Application Fee charged to all applicants, and the 10% down payment money for the Seller Financing, there are no additional fees. Seller Financed closings require normal Buyer closing costs, which can be broken out at time of application.
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