Welcome to Magazine Premium

You can change this text in the options panel in the admin

There are tons of ways to configure Magazine Premium... The possibilities are endless!

Member Login
Lost your password?

Rent To Purchase

A New Way To Buy Your Next Home in Top Rated School Districts

CouplePhoto

 

hyperionlogoC21TenaceLogo

Hyperion Homes and Century 21 Have partnered together to bring you this exciting new pathway to home ownership.

Can’t get financing?

This new “Lease with Right to Purchase” program provides responsible households who cannot obtain a mortgage a new path to home ownership. The program provides rental certainty with just a one year finance commitment.

How it Works

howitworks (1)

advantages (1)

Application

Prospective residents start the process by filling out a pre-qualification application that checks key issues.

If the pre-qualification application is accepted, the applicant will be required to submit a Full Application for a full credit and background check.  A Hyperion Homes Representative will contact the applicant.

If approved, Hyperion Homes will outline the maximum Monthly Rent and Total Cost Basis of the home for which the prospective resident qualifies.

Each person who is 18 years or older who will occupy the home is required to be listed as an applicant and as a tenant on the lease for the home.

There is no application fee for the pre-qualification application.

Applicants and prospective occupants (including children) must have no criminal history that includes having been convicted, plead no contest to, received deferred adjudication for (including adjudication by the relevant state juvenile justice department) or received probation for:

  • Felony violation of any controlled substance law;
  • Any offense (felony or misdemeanor) involving assault, battery, family or domestic violence or threatened violence to any person, malicious destruction of property, theft, use of any weapon in the commission of any crime, any weapon related offense, lewd or immoral behavior, or any sex related crime.

If your pre-qualification application is accepted, you will be required to complete a full application for an investigative consumer credit report and background check. The application fee for the full application is $75 per household (ie, if there is more than one applicant for a household, the total application fee is still $75).

Applicants must have:

  • a household income of $50,000 or more
  • a minimum combined average credit score is 525

 

Find a Home

Prospective residents will work with John and Brenda Sansaricq and Century 21 Tenace Realty to find a home in an approved community. Homes considered must be a minimum of 3 bedrooms and two baths in an approved community between $100,000 and $500,00.

Approved Communities within Palm Beach County Florida Are:

  • Boca Raton Community High School
  • Olympic Heights Community High School
  • Spanish River Community High School
  • Atlantic Community High School
  • Park Vista Community High School
  • Santaluces Community High School
  • Palm Beach Central High School
  • Jupiter Community High School
  • Palm Beach Gardens Community High School
  • Royal Palm Beach Community High School
  • Seminole Ridge Community High School
  • Wellington Community High School
  • William T. Dwyer High School


Once a home is identified, Hyperion Homes will attempt to  purchase the home – the outcome of which will depend on certain conditions being met such as agreeing on a purchase price with the seller, a satisfactory inspection, attorney review of the purchase contract, and other closing conditions being satisfied.

Agreements and Deposit

Once the offer for the home is accepted by the seller, prospective residents will be required to sign a one year Lease for the home as well as a Purchase Right Agreement.

In addition to signing these agreements, prospective residents will be required to provide a deposit consisting of the first month’s rent and a security deposit (equal to two months’ rent). The signed documents and deposit (three months total) will be held in escrow.

If the offer for the home is accepted by the seller,  the deposit will be released to the investor

If the offer for the home is not accepted by the seller and the purchase of the home does not close, the deposit will be returned in full.

The signed agreements will become effective once the purchase of the home is closed.

 

Key Considerations

Among the key considerations that a prospective resident should consider include:

  • the value of the home may not increase above the Purchase Right Price
  • the resident may not be able to exercise the Purchase Right because he or she may not qualify for a mortgage

Hyperion Homes is not a mortgage company, does not have any obligation to provide and does not provide financing and cannot guarantee or in any way assure that a resident will be able to obtain a mortgage if and when he/she wishes to exercise the Purchase Right.

If necessary and desired by a resident, Hyperion Homes will assist him/her in entering a credit repair program to increase the likelihood of qualifying for a mortgage in the future. Hyperion Homes cannot guarantee or in any way assure that such program will increase the likelihood that a resident will qualify for a mortgage or will obtain a mortgage in the future.

 

Agreements

Lease

The initial Lease term is for one year, and the Lease automatically renews every year as long as the resident is in compliance with the Lease and other agreements.  Before the end of a Lease term, the resident has the right to give notice that he/she does not want to renew the Lease for another term. If for any reason the resident decides to leave the home at the end of a Lease term and is in compliance with the Lease, the full security deposit will be returned.

The resident’s financial commitment is limited to the initial one year Lease.  The resident does not have to renew the Lease after the initial year.  The maximum number of Lease term years is five in the state of Illinois/Colorado and three in the state of Texas.

Over the life of the Lease, Hyperion Homes expects residents to treat the home as their own- maintain the lawn and garden, remove snow or other debris, and complete minor repairs. Hyperion Homes is responsible for any major maintenance items.

 

Purchase Right Agreement

The resident’s Purchase Right Agreement (and therefore Purchase Right) is in effect as long as the Lease is in effect, and the resident is in compliance with these agreements.

The Purchase Right Agreement gives the resident the right to purchase the home from Hyperion Homes at a pre-defined price for each year of the Lease, as long as the resident is in compliance with these agreements.  The maximum number of years a resident can rent the home and have the Purchase Right is five years in the state of Illinois/Colorado and three years in the state of Texas.  The Purchase Right does not obligate the resident to buy the home.

 

Escrow

Within 24 hours of a seller accepting Hyperion Homes’ offer for the purchase of a home, prospective residents will be required to sign the Lease, Purchase Right Agreement and tender the deposit, all to be held in escrow.

 

Prospective residents will have an opportunity to review all documentation, and Hyperion Homes encourages all prospective residents to consult with legal counsel to review such documents prior to signing them.

The Math

Hyperion Homes and prospective residents share a common interest in finding a home for a long-term commitment at a good price.

 

Total Cost Basis

Total Cost Basis is the price Hyperion Homes pays for the home, closing costs, renovations and initial repairs.  Total Cost Basis is used to determine the resident’s Purchase Right Price.  A sample is highlighted below:

Purchase Price………………………….. $180,000
Closing Costs1…………………………… 2,000
Renovations………………………………. 15,000
Initial Repairs ……………………………. 3,000
Total Cost Basis ………………………… $200,000

1  Includes costs such as tranfer taxes, attorneys’ fees, title insurance, etc.

 

Monthly Rent Increases

Each year, a resident’s Monthly Rent increases by no more than 3.75%.

For example, if the Monthly Rent for Year 1 is $2,000 per month, the increase for the next year is $75/month (ie, $2,000 x 1.0375).

 Monthly Rent (rounded to nearest $10)         

Year 1 ………$2,000
Year 2 ………$2,075
Year 3 ………$2,150
Year 4 ………$2,230
Year 5 ………$2,310

Purchase Right Price Increases

Each year, the Purchase Right Price increases by 5% (ie, Prior Year Purchase Right Price x 1.05).

In the example, if the Total Cost Basis of the home is $200,000, then the Purchase Right Price for Years 1-5 is as follows:

Year 1 ……………………………….   $210,000
Year 2 ……………………………….   $220,500
Year 3 ……………………………….   $231,525
Year 4 ……………………………….   $243,100
Year 5 ……………………………….   $255,255

There are additional costs that the resident will incur if they exercise the Purchase Right such as closing costs to purchase the home, including transfer taxes, attorneys’ fees, title insurance, etc.  Therefore, actual total costs to exercise the Purchase Right will vary.

 Please contact John and Brenda Sansaricq at (561) 386 4992 for additional information regarding this program or just send us an email at rto@rentboynton.com

 

 

Leave a Reply



  1. Please enter your name and email if you're interested in finding out more about this program.