Rent-To-Own

Rent-To-Own Program

NORHOP's Rent-To-Own program was designed for people who are not yet qualified for a mortgage but want to realize the American Dream of home ownership. That includes individuals and families who have been affected by divorce, bankruptcy, severe credit problems or job changes that limit creditworthiness in the eyes of conventional lenders.

NORHOP's program gives you the unique opportunity to move into a home in the community of your choice before you're able to get your own mortgage. NORHOP buys it and leases it to you while you work toward qualifying for a mortgage. Once qualified for a mortgage, you buy the home from NORHOP. Rent-To-Own is sometimes called Lease-Purchase.

NORHOP helps you achieve successful home ownership with:

How it works

There are two components to the Rent-To-Own program: 1) a lease to rent the home, usually for one year; and 2) an option/purchase agreement, giving you the right to purchase the property in the future for a pre-arranged price. There is no security deposit required on our lease; instead you'll pay an option fee of $2000 that will be credited back when you purchase the house.

The minimum amount needed to move in is usually about $3000, as follows:

After you apply, we'll review your income, expenses, debts, savings and credit scores; then if we believe that we can help you to become qualified for a mortgage within a year, we'll accept your application. If you follow our guidance to prudently manage your finances, NORHOP's Rent-To-Own program could be your easiest route to home ownership!

Our agreements are structured to help you buy the house. For every month that you pay your rent on-time, we'll credit at least $100 toward your future purchase. Optionally, if you can pay more up-front with a bigger option fee, we'll give you a bigger credit each month. Ask your leasing agent for more details.

Since our mutual goal is for you to buy the house, we want you to think of the house as yours and to take good care of it and to be responsible for its maintenance. Some of our homes come with a home warranty to help control your maintenance expenses. We can also refer you to responsible, reasonably-priced contractors if you need help.

While you're renting, you'll have to focus on improving your credit scores. You'll be required to work with one of our financial counselors via telephone to make sure you'll become qualified for a mortgage by the time the lease expires. Our counselors can explain how paying your bills on time and making payment arrangements with creditors will improve your credit scores, but you'll be required to pay your bills on time to insure that you will qualify for a mortgage when the time comes to buy the house.

It's not that complicated, and we'll be with you every step of the way to convert your lease to a purchase. Your leasing agent will be happy to further explain the details.

Click here to apply for NORHOP's Rent-To-Own program online or call River City Property Management at 423-648-7368.