Homes for Sale | Call 678-757-5364 | Elegance Realty provides Professional Real Estate assistance to Buyers and Sellers in Atlanta GA.

8 Lease-To-Own Programs

Why you should?
Home Prices are soaring. Already in the Greater Metro Atlanta area, median home prices have increased from an average of $315,000 in 2020 to $400,000 in 2021, and $438,500 in 2022.  When you lease to own, you lock in your home price, so when the home appreciates in value in the coming years, you will be able to lock in your purchase price now.

Who do we typically help?
  • Clients that cannot currently qualify for a mortgage
  • Last minute problems closing with a mortgage
  • Bridge between renting & purchasing​

Important Factors to Consider:
  • Residents only commit to a one-year lease term.  You have the ability to renew your lease in one-year increments, for up to 3 to 5 years.  Before signing your lease, you are given your monthly rent and agreed purchase price for the following years.
  • These programs do not provide mortgage financing nor guarantee that clients will obtain a mortgage at the end of their lease.
  • You are encouraged to apply for more than one program; however, you want to choose the best program that meets your needs and budget.  Therefore, carefully review the qualification requirements of each program below and on the application links below prior to applying.  Should you need assistance choosing the programs to apply for, your Elegance Realty Buyer's Specialist can recommend you to the appropriate programs to apply for.  

How Does Lease To Own Work?
Step 1: Complete the application to qualify. You can apply to each program available with no impact to your credit.
Step 2: Once you’re approved, you’ll receive a budget to go home shopping.  As your Realtor, we will come up with a list of your needs and wants and tour properties that are available in your desired areas.
Step 3: The company pays for the home in cash and you would submit a down payment in the amount of 1-3.5% of the purchase price of the home. Or with Home Partners your down payment would be two months rent. Each program has their own down payment requirements. This down payment will later be used towards the purchase of the home when you get ready to qualify for a mortgage loan.  

How do you qualify?
Each program has its own income verification process.  The acronym that Elegance Realty uses to simplify these requirements is "CSI".
C = Credit
S = Savings
I = (Household) Income

Documents
Here are some of the documents you may potentially need when applying.
  • Savings:  Bank Statements, 401K, Gift Letter
  • Income:  
    • Hourly/Salary: Recent Pay Stubs
    • Independent Contractors: Recent Pay Stubs
    • Self Employed: Bank Statements, Tax Returns, Profit and Loss Statement

Divvy

Rent your dream home while Divvy helps you save for a down payment. You can buy the home from us whenever you’re ready, or walk away and cash out your savings.

QUALIFICATIONS:
  • Free To Apply
  • Soft Credit Check; No impact to your credit to apply
  • C = Min 550 FICO Score
  • S = Down Payment (Initial Contribution) = A one-time, upfront contribution of 2% of Home Value/Price
    • *  Equity credits = your home savings account. You start out with at least 2% equity credits, and build toward 5% or 10% equity credits over your 3-year lease.  (If you choose not to buy the home at the end of the 3-year lease, you will keep all of your home savings accrued through the savings portion of the monthly payments, minus the initial 2% you put down)
  • I = $30,000 Per Year ($2,500/mo) Income - You can add a co-applicant during the application process. The exact minimum income will depend on your current debt levels & home prices in your desired metro area. 
    • * 3 months of verifiable steady income:  You may add multiple income sources, including self-employment. (Just know that self-employed income can take a little longer to verify.)
  • Background check:  to determine your rental history & criminal background.  For criminal background checks, we evaluate the recency and severity of any convictions.
  • No bankruptcies or evictions in the past year.
  • Monthly Lease:  Divvy payment has 2 components: Rent (about 75%) Home Savings (about 25%) 
    • * Rent + Home Savings = Rent is based on the fair market rent of your city. Home Savings is what we set aside for you to save up little by little for your future down payment (approximately 0.10%-0.25% of home value).

Dream America

Rent your dream home while Dream America helps you save for a down payment. You can buy the home from us whenever you’re ready, or walk away and cash out your savings.

QUALIFICATIONS:
  • Free To Apply
  • No Impact to Credit to Apply
  • C = Min 500 Credit Score
  • S = Show proof of funds in the amount of $5,000 minimum cash available now from savings, 401k, or gift
  • The higher the home price, the higher the required down payment.
  • I = $48,000 Per Year ($4,000/month) pre-tax household income (applicant + co-applicant, if any)
  • 12 month history of on-time rent payments
  • No bankruptcies or evictions in the past year.
  • *Requires a large down payment depending on the purchase price of the home.
  • 10% of rent is credited towards your purchase​

​12-Month lease-to-own
  • Close in 2 - 3 weeks
  • New construction and re-sale 
  • Get pre-qualified in 5 minutes​

​Watch intro video/client testimonials:
Click Here to learn about the Dream America program!
Click Here to listen to Trina who is now a homeowner!
Click Here to hear Denita discuss how Dream America is helping Veterans!

Halo

Home Partners of America
QUALIFICATIONS:
  • No Impact to Credit to Apply
  • C = Min 480 Credit Score with a clear path to reaching 620 within 36 months (don't worry, we can help you get there)​
  • S = Down Payment (Option Fee) 1.5% up to 3.5% of home purchase price.  (Deposit $1,500 toward your Option Fee, due before Halo can sign an offer on a home you find.)
  • I = Min household income of $3,500 per month (i.e. total pre-tax income from applicant + co-applicant)
  • No bankruptcies or evictions in the past year.
  • Commitment to credit actions during the life of the lease which starts with paying all your bills on time
  • Example: $350,000 Home Price. 1.5% = $5,250 - 3.5%= $12,250
*Your initial down payment will be saved and you will be able to use those funds when you are ready to purchase with a mortgage.

Based on standard FHA down payment guidelines, we require that you have cash equal to 3.5% of the purchase price in order to enter the HALO program.

Lease terms are determined on an individual basis and factor in the cost of the home, property taxes, HOA fees (if any) and insurance costs.  Rents start at $1,300/month.
QUALIFICATIONS:
  • Application Fee = $75 per household that must be paid online as part of the application process. This Application Fee covers all applicants in the household and is nonrefundable.
  • No Impact to Credit to Apply
  • C = Min 550 Credit Score
  • S = Show proof of funds required to show that you can pay the security deposit of two months rent lease payment. 
  • I = $40,000 Per Year Household Income - Can be combined with another applicant, child support, alimony, or social security income. Higher income amounts will qualify for higher home prices.
  • No open bankruptcies or evictions in the past year.
  • No disqualifying criminal history
  • Minimum of 45 days from date of application to move-in
  • Resident can choose a home currently listed for sale located in an approved Home Partners area. 
  • *No Portion of your lease payment is saved. Your initial down payment will be saved and you will be able to use those funds when you are ready to purchase with a mortgage.
​​
Several factors taken into consideration: (household income, rent-to-income and debt-to-income ratios, rental and housing history, employment history, criminal history, and FICO® scores.)

When there are multiple people, not an average of the scores. Will also look at the income. Whoever has the highest income, their credit score will carry the heaviest weight.

Will outline the maximum Monthly Rent of the home for which the prospective resident qualifies.

​Each year, a resident's Monthly Rent increases by no more than 3.75% over the previous year’s Monthly Rent.

For example, if the Monthly Rent for Year 1 is $1,400 per month, the increase for the next year is $50/month (i.e., $1,400 x 1.0375)*.

Landis

Landis makes it easier to buy your new home. They will provide you with an easy and transparent process to transition seamlessly from renting to owning. They have been funded by celebrities such as Jay Z and Will Smith in an effort to help more people own and build wealth with their homes instead of renting.

QUALIFICATIONS:
  • Free To Apply
  • No Impact to Credit to Apply
  • C = Min 550 Credit Score
  • S = Show proof of funds in the amount of $3,000 minimum (can come from gift, 401k, or savings). The higher the home price, the higher the required down payment.
  • I = $30,000 Per Year Income - Can be combined with another applicant, child support, alimony, or social security income.
  • No bankruptcies or evictions in the past year.
  • A portion of your lease payment is placed in a savings account and you can use the funds when ready to apply for a mortgage.

Pathway Homes

Pathway is an amazing program that allows you to rent your home now and buy it later. Requires you to rent for at least one year before you can purchase the home with a mortgage.

QUALIFICATIONS:
  • Application fee of $25. This fee is per application, not per person
  • No Impact to Credit to Apply
  • C = 600 Min Transunion Credit Score
  • S = $0 Savings
  • I = $50,000 Per Year Household Income - Can be combined with another applicant, child support, alimony, or social security income.
  • No bankruptcies or evictions in the past two years.
  • Must pass a background check
  • Only requires one month rent and security deposit as down payment.
  • No added savings payment on top of the rent payment.

Trio

To complete your application, you will need to provide details of your income and savings. You will also need to provide contact information for your employer and landlord. If including a co-applicant, make sure they are available to provide their details as well. All applicants should be present to complete the application as accurately as possible.
A reminder of our minimums:
  • Gross household income of at least $3600/month or more
  • Third-party documentation to support income and positive housing history
  • A FICO credit score of at least 580
    • Your approval will be dependent upon a FICO credit report provided by Equifax
  • No active bankruptcy or foreclosure action
  • Enough savings to cover estimated upfront costs, with no less than $5,000 held

The following program only provides a 6 month lease, therefore you must already have a Preapproval Letter from a Mortgage Lender in order to qualify for this program.

Ribbon Home

Ribbon Buy
Price range:  150K - 700K
4 acres and under
Built after 1975 or renovated

NO:  mobile, manufactured, modular, seller possession, as-is, flips, Fixer-uppers, Renovation Specials, investment/vacation/secondary homes, foreclosures, short sales, estate sales (by case), seller post-occupancy.
The steps in the Ribbon program are:
  • Step 1:  Client must have a Preapproval Letter from a Mortgage Lender
  • Step 2:  Client must accept the Ribbon Program Agreement to be ready to make an offer!
  • Step 3:  Your Agent adds properties to Client's Ribbon Profile.
  • Step 4:  Ribbon's team of experts works on valuing the properties to determine their maximum purchase price.  They strive to provide you with the most competitive and accurate price possible. 
    ​(Valuations typically take less than 24 hours to complete.
  • Step 5:  Ribbon buys and reserves your new home
  • Step 6:  The Ribbon fee is due when we buy the home (typically paid by the seller)
  • Step 7:  Client rents their new home from Ribbon while you secure financing
  • Step 8:  Once Client is ready to repurchase their home, they buy it back from Ribbon at the same price


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All rights reserved.
Office: 678-757-5364 | [email protected]
Elegance Realty provides Professional Real Estate Services to Buyers and Sellers in the Atlanta GA metropolitan area.
Homes for Sale | Call 678-757-5364 | Elegance Realty provides Professional Real Estate assistance to Buyers and Sellers in Atlanta GA.