DREAM LEASE TO OWN

If you could qualify for a mortgage today, would you buy a house?

If so, the Dream Lease to Own may be for you. Once qualified, you will go out with your real estate agent to pick the home you want from any available for sale in your area for $150,000+. Once you select the home you want, Dream will purchase that home and lease it to you for 12 months. At any time that you qualify for a mortgage, you can cancel the lease penalty-free and buy your home! If you still aren’t ready to buy at the end of the lease, don’t worry! As long as you have been paying your rent on time each month, you can renew for another year (please note, rent and option prices will increase at the time of the renewal).

APPLY NOW

HOW IT WORKS

Once qualified, you will go out with your real estate agent to pick the home you want from any available for sale in your area for $150,000+.

Dream America will purchase that home and lease it to you for 12 months.

At any time that you qualify for a mortgage, you can cancel the lease penalty-free and buy your home!

If you still aren't ready to buy at the end of the lease, don't worry! As long as you have been paying your rent on time each month, you can renew for another year.



REQUIREMENTS

  • 500+

    500 MINIMUM
    CREDIT SCORE

  • $4,000

    $4,000 MINIMUM
    MONTHLY INCOME

  • 1/3

    MONTHLY RENT
    MAXIMUM 1/3 OF
    HOUSEHOLD INCOME

  • 45%

    45% MAXIMUM
    DEBT-TO-INCOME

  • 12+

    12+ MONTHS OF
    ON-TIME RENT
    PAYMENTS

  • $

    FUNDS FOR OPTION
    PAYMENT,ONBOARDING FEE
    AND RENT


FREQUENTLY ASKED QUESTIONS

WHAT IS DREAM LEASE TO OWN?+_

Dream Lease to Own is a 12 month lease with option to buy offered exclusively to aspiring homeowners. It is for individuals and families that want to pick a home from any available for sale in their community (within an approved budget), lease it from Dream America and then buy as soon as the qualify for a mortgage.

WHAT ARE THE STEPS INVOLVED?+_

1) Read the program guidelines and see if it sounds right for you
2) Apply
3) Qualify (see more on minimum qualifications to Apply below)
4) Find a home that meets your needs
5) Dream will work with your agent to put an offer in on the home
6) If our offer is accepted, we will immediately order an inspection and appraisal
7) Sign lease and option agreement
8) Closing and Move-in!
9) Buy your home from Dream America when you are ready

WHAT ARE THE MINIMUM QUALIFICATIONS?+_

+ Commitment to becoming a homeowner -- pay bills on time and repair credit
+ Track record of paying rent on-time (we will verify with your landlord)
+ FICO score of 500+ (check yours at www.freecreditreport.com )
+ Household pre-tax income of $4,000+/month (applicant+ co-applicant, if any)
+ $10,000+ cash available from savings, 401k or gift (less for Vets . See details below)

HOW DOES IT WORK?+_

Once you are qualified, you will go out with your real estate agent to pick a home in your community that is right for you. Dream is not involved in selecting your home. The process of selecting a home is virtually identical to the traditional process that you would go through if you had already qualified for a mortgage. The difference is once you find your home, Dream America will buy it and lease it back to you for 12 months with an option to buy at any time. In fact, you can cancel your lease early with no penalty when you qualify for a mortgage and buy your home!

IS DREAM AMERICA AVAILABLE IN MY NEIGHBORHOOD?+_

Dream America is currently available in major metro areas in FL, GA and TN. Once you qualify, you can go out with your agent and pick any eligible home that fits your needs.

WHICH HOMES ARE ELIGIBLE FOR DREAM LEASE TO OWN?+_

+ Single family home, townhouse or condo eligible for FHA financing
+ List price of $150,000 up to FHA limit (which varies by region)
+ Homes built or renovated in the last 15 years. You are responsible for maintaining the home and the last thing we want you to have is big repair bills!
+ Dream America’s purchase price today must be less than the appraised value (on average, we buy homes 3%+ below appraised value) Except for new construction, we order an inspection on all homes before we purchase them and share that with you. We then ask the seller to make any necessary repairs. We also insure that all Dream homes come with a home warranty to cover HVAC, plumbing, electric and appliances.

HOW DOES THE OPTION TO BUY MY DREAM HOME WORK?+_

The option to buy your Dream home requires an upfront payment equal to 5% of your 12 month option purchase price (more on that below). This payment is not a fee because it is credited back to you when you purchase your Dream home. This insures that you have downpayment and closing cost funds available when you exercise your option to buy. It also insures that you are committed to buying your home because you will forfeit the option payment if you don’t buy the home. This is a very important point so we will emphasize it again – if you walk away from the house you will lose your option payment. All of it. As we stated before, Dream is for aspiring homeowners. It is not a try before you buy program. If you are not 100% committed to fixing your credit and becoming a homeowner, please stop reading this now and look for another alternative.

I’M A VET ELIGIBLE FOR A VA MORTGAGE. DO YOU STILL NEED 5% FOR MY OPTION?+_

No. We only require a 3% option payment from anyone with a VA certificate of eligibility. Thank you for your service.

HOW IS THE OPTION PURCHASE PRICE DETERMINED?+_

The longer you continue to rent from Dream, the more you will pay when you buy your Dream home. If you buy it in 6 months, you will pay 6% more than Dream America’s acquisition cost. If you wait 12 months, you will pay 10% more.

IS THE OPTION PURCHASE PRICE A GOOD DEAL?+_

That depends on many factors. The best alternative for you may be to continue to rent and buy in the future. But if housing prices continue to rise, you will pay more in a year than you would today. Maybe your lease is ending and you need to move. And you want to move into your Dream home that you select. Not just another rental. Moving to another rental also means you will have to move twice in the next year – now and when you qualify for a mortgage. Dream lease to own eliminates that extra move. Also, you should know that Dream can probably get a better deal today than you can on the home you select. We buy houses with no financing contingency. This makes us more attractive to sellers and generally allows us to get a better deal. The less we pay today, the less you pay in the future.

WHAT FEES ARE INVOLVED IN DREAM LEASE TO OWN?+_

You will pay a 1% onboarding fee to Dream America as soon as we are under contract to buy the home you selected.

WHEN IS THE OPTION PAYMENT AND ON BOARDING FEE DUE?+_

Payment is immediately due once Dream America has an accepted offer on the home you select. Please do not start the home search process unless you have funds available. If you are obtaining funds from a 401k or gift from a family member, please discuss that with someone on the Dream team during the application review process.

WHAT HAPPENS IF I STILL CAN’T QUALIFY FOR A MORTGAGE BEFORE MY LEASE ENDS?+_

As part of the approval process, your application is reviewed by a licensed mortgage lender (Dream America does not offer mortgage financing). We will work with you and the lender to see if there is a clear path for you to obtain a mortgage during the life of your lease. If it isn’t clear, we won’t accept you. However, we understand circumstances change. Things happen. So if you can’t qualify for a mortgage by the end of your lease, the next question is did you pay your rent on-time every month during the lease? Or did we have to chase you time and time again for the rent? If you paid on time, no problem. We will offer you a new 12-month lease. Your rent will increase by 5%. And the option prices will increase too. On the flip side, if you haven’t paid your rent on-time during the last 12 months, we are exhausted chasing you. We need to focus on clients that are serious about become homeowners. You will need to move out.

As described above, if you don’t purchase the home for any reason, you will lose your option payment. We don’t want to see this happen. We want 100% of our clients to buy their home from Dream America in 12 months or less (less is a better deal for you!). We are not a long-term landlord. We don’t sit on an inventory of houses. If you don’t buy your house, Dream America will face many costs in re-selling it. That is why you will lose your option payment.

WHAT IF THE HOUSE DOESN’T APPRAISE FOR THE OPTION PRICE IN THE FUTURE?+_

As described above, your option purchase price is set when your lease begins. We don’t have a crystal ball and don’t know what the appraisal will be in the future. In order to bridge any gap, you may need to contribute additional funds to the closing. In order to make this as painless for you as possible, we will also ask the mortgage lender to contribute towards closing. And Dream America will contribute too. If all of this is still not enough, you may need to continue to rent and try again in the future.

ARE THERE ANY CLOSING COSTS?+_

Dream America pays the closing costs up to $2,500 when we purchase the home (and our costs are usually well below that). You will pay all closing costs when you qualify for a mortgage and purchase your Dream home. You can get an estimate of closing costs from any mortgage lender. You should plan on the FHA down payment requirement plus closing costs to exceed 5% (i.e. the credit you are receiving back from Dream America). So it’s important that you save additional funds during the life of your lease.

I NEED TO REPAIR MY CREDIT. WILL DREAM HELP ME?+_

You will receive feedback from Dream and our mortgage lending partner on steps you can take to improve your credit. Many of our clients will also need professional credit repair assistance and we will introduce you to specialists that are working with Dream clients.

WHO MAINTAINS THE HOME DURING THE LIFE OF THE LEASE?+_

You are responsible for maintaining the home during the life of the lease (and thereafter once you purchase it!). Please remember, we order an inspection before we purchase the home and give it to you. If you aren’t happy with the condition of the home, we won’t purchase it.
As an additional benefit for you, we will insure your home comes with a home warranty, covering appliances, electric, HVAC and plumbing during the life of your lease.

CAN I MAKE COSMETIC IMPROVEMENTS TO THE HOME DURING THE LEASE?+_

Absolutely! You are free to upgrade the landscaping, paint the walls, install new carpet, etc. in your Dream home. Major construction involving structural changes is not permitted. You need to buy your Dream home first.

ARE PETS ALLOWED?+_

Yes, pets are allowed but pet breed and age must be listed in the lease. A non-refundable $250 pet deposit will also apply. Certain pets may be excluded due to insurance restrictions or community standards.

I WANT TO GET IN MY DREAM HOME, BUT I DON’T HAVE THE REQUIRED CASH. DO YOU MAKE EXCEPTIONS?+_

In general, we don’t make exceptions. Dream lease to own is for aspiring homeowners. And becoming a homeowner entails many costs and commitments. If you have saved most, but not all of the required cash, please contact us to discuss.

WHAT IF I HAVE MORE QUESTIONS?+_

Email us at info@dreamamerica.com. Be sure to include your phone number and let us know if you are a potential client or a real estate agent.

HOW DO I APPLY?+_

Click here to start the application process:www.dreamamerica.com/apply

How much is the monthly rent? +_

Rent is determined by house price, property tax, HOA fees and insurance costs. To state the obvious, rent is more expensive than your cost of ownership once you obtain a mortgage! That is why we offer a penalty-free early lease termination when you buy your Dream home. Please also note, the rent you pay in Dream Lease to Own does not go towards your purchase.

Use this calculator to estimate your rent:

Can I afford the rent on the house I want? +_

Great question! We want to see all of our clients become homeowners. But first you need to be able to afford the rent, pay your other bills and build some savings. That is why we limit your rental budget to 1/3 of your household income before taxes. In fact, we encourage our clients to find a home with a smaller monthly payment than the maximum to allow them to save as much as possible during the lease.



However, we will also look at your other debt payments. The total of your other payments + the Dream rent needs to be less than 45% of your household income before taxes:

How much cash do I need to join Dream Lease to Own? +_

You are going to need the onboarding fee, option payment and 1st month’s rent available. When you add this all up, you should plan on having at least $10,000 available from savings, a 401k plan or gift from a family member.


Please select atleast one option *

Please remember, you will also need to pay the 1st month’s rent when you move-in (see calculator above to estimate your rent payment). So add that on to your funds available checklist.