Frequently Asked Questions
What is this Lease 2 Own Program?
This program allows you to find a home that you want to rent initially, but may also like to buy within the next five years. Our investor client(s) believe that there are many households who may be thinking about buying a home but for whatever reason would like to rent at the current time.You can lease the home for up to five years and you may purchase the home at any time at a predetermined price.
Who is eligible for this Lease 2 Own Program?
This program has a certain minimum criteria. Your household must have an annual income of $60,000. You must have stable employment. Our investor client cannot accept you into its program if you or anyone in your household has a history of eviction or a pending bankruptcy. Everyone in your household will be subject to a criminal background check.
How do I apply for this Program?
Every member of your household who is 18 years of age or older must complete the Pre-Qualification Application and the Full Application.The Full Application requires certain information, including residence and employment history, for each member of the household. You also must provide income and asset verification for each member of the household whose income is to be considered in determining the rent approval amount in order for your application to be considered complete.
Our client takes several factors into consideration when reviewing an application, which include household income, rent-to-income and debt-to-income ratios, rental and housing history, employment history, criminal history, and FICO scores.
You will usually receive a response regarding your application within 2 business days of receiving all required information.
How much does it cost to participate in the Lease to Own Program?
Our client has a one-time Application Fee of $30 per applicant that must be paid online as part of the application process. This Application Fee covers all applicants in the household and is nonrefundable.
Why might my application be denied?
Our Client takes several factors into consideration when reviewing an application, which include household income, rent-to-income, and debt-to-income ratio, rental and housing history, employment history, criminal history,and FICO score. They consider the profile of the entire household when reviewing an application. If your application is denied, you will receive notification in writing.
How do I find a home once I'm approved?
You will work with a licensed Caybren Real Estate Agent to search for homes that meet our clients purchasing criteria. Generally, this means that the home should be:
1. Located in an approved community;
2. Listed between $200,000 and $550,000 ($500K max in Colorado Springs Metro);
3. Located on a lot no more than two (2) acres with a minimum of two bedrooms;
4. A single family home or fee-simple townhome; condo associations, condo interests, commercial and multi-family properties are not eligible for the Program;
5. A Builder Contract, REO (foreclosure); short sales, pool and auctions are not eligible for this Program; and;
6. No material deficiencies (e.g., major structural issues,pervasive mold, etc.);
7. Once you have selected a home, your Caybren Real Estate Agent will submit the property information to our investor client.
Does your investor client own the homes shown on your website?
No. The homes shown on our website are for sale in the markets in which we operate. This list of homes automatically feeds into our website from a listing service (MLS) and is updated on a regular basis. However, we cannot filter for certain criteria such as whether a townhome is or is not fee-simple so there is a possibility that a home shown on our website does not meet our clients minimum eligibility criteria. The information on our home search is for informational purposes only and cannot be guaranteed by Caybren Real Estate.
Is there a required deposit?
Yes. Generally, our client requires a deposit equal to two months rent. If you decide to leave the home at the end of any one-year lease term and you have been in compliance with the terms of the lease and return the home in the same condition it was in when you moved in (normal wear and tear excepted), the full deposit will be returned to you or credited to the purchase price if you buy the home unless specified in your lease. The full deposit (less any outstanding charges owed to our client) is also returned to you if you exercise your Right to Purchase the home.
How long does it take from when I select a home to when I move in?
On average, it takes approximately five to six weeks from the time our client enters into a purchase agreement for a home until the day you are able to move in. There are a number of variables that may affect the move-in time frame, including the length of negotiation with the seller leading up to when we enter into a purchase agreement, what the home inspection reveals with respect to required repairs, and the renovations you request. Caybren Real Estate will keep you informed throughout the entire purchase and renovation process so that you are aware of this timing.
What happens after I move in?
You become our client's tenant, and they are your landlord. You have entered into a lease with them for one year and are bound to the terms of that agreement. The Landlord's management company will collect your monthly rent and perform any necessary repairs that are their responsibility after you move in.
Is Caybren Real Estate My Buyers Agent?
NO. Caybren Real Estate is the Buyer's Agent for the investor/purchaser and will be treating you as a customer for the Buyer. Caybren Real Estate will disclose this relationship with a Colorado Real Estate Approved Brokerage Relationship Disclosure form prior to searching for properties.
Are the monthly rent payments that I make applied to the purchase price of the home?
No. Monthly rent payments are not applied to the purchase price of the home. If you decide to exercise your Right to Purchase, you must pay the full predetermined price as set forth in the Right to Purchase Agreement.
Is Caybren Real Estate the Property Management Company for the Landlord/Investor?
NO, Caybren Real Estate's role is strictly as the Investor's Buyer's Agent. Caybren Real Estate is not involved with any tenant relationship including application approval, lease, and property management.
How do I exercise my Right to Purchase?
You may notify the landlord/owner at any time that the Lease is in effect that you would like to exercise your Right to Purchase. However,you must provide them with that notice in writing at least 60 days before you want to complete the purchase. Once you notify them that you want to exercise your Right to Purchase, they will contact you to get the process started.
Can I buy a home in the middle of a lease term or do I have to wait until the end of the year?
You can exercise your Right to Purchase at any time during your Lease. However, you must provide the landlord/owner with written notice of your intent to exercise at least 60 days before you want the sale to close. In addition, the closing date must occur before the end of the applicable Lease term.
Do you provide me with a mortgage?
The Landlord/Owner is not a mortgage company. They do not have any obligation to provide or arrange a mortgage loan. Owner/Landlord cannot guarantee that you will be able to obtain a mortgage loan if and when you wish to exercise the Right to Purchase. If you would like to see if you qualify for a mortgage please contact Caybren Real Estate direct and they can refer you to a qualified mortgage company.