1. What is the Lease with a Right to Purchase Program? The Lease with a Right to Purchase Program (the “RTP Program”) allows you to find a home that you want to rent initially, but you may also like to buy at any time within the next three to five years. We believe many households 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 three to five years, depending on the state, and you may purchase the home at any time at a predetermined price per the Right to Purchase agreement.

2. Who is eligible for the RTP Program?- There are certain minimum criteria for the program. Your household must have an annual income of $60,000. You must have stable employment. We cannot accept you into the program if you or anyone in your household has a history of eviction (No evictions within the past 5 years) or a pending bankruptcy. Everyone in your household will be subject to a criminal background check.

The minimum credit score requirement in Illinois is 620 FICO.

The Debt To Income (DTI) Ratio maximum is: 50% 

The maximum Rent to Income (RTI) Ratio: 40% 

3. How do I apply to the RTP Program?- The Smith Group will send you an invitation to apply for the 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 verification for each member of the household whose income is to be considered in determining the rent approval amount for your application to be considered complete. If you are moving from a different state or starting a new job, we will need confirmation of your new job and income. Several factors are taken into consideration when reviewing an application, which includes household income, rent-to-income, and debt-to-income ratios, rental and housing history, employment history, criminal history, and FICO® scores. A decision on your application is usually made within 1 to 3 business days of receiving all required information.

4. How much does it cost to participate in the RTP Program? There is a one-time Application Fee between $75-$99 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.

5. Why might my application be denied?- There are several factors taken into consideration when reviewing an application, which includes household income, rent-to-income, and debt-to-income ratio, rental and housing history, employment history, criminal history, and FICO® score. The profile of the entire household is considered when reviewing an application. If your application is denied, you will receive notification in writing.

6. How do I find a home once I’m approved? You will work with Smith & Company to search for homes that meet the purchasing criteria. Generally, this means that the home should be:

• Located in an approved community and is not adjacent to features that may negatively impair the value
• Listed for between $100,000 and $450,000 in most states, though exceptions apply;
• Located on a lot no more than two acres with a minimum of two bedrooms;
• A single-family home or fee-simple townhome; condo associations, condo interests, commercial and multi-family properties are not eligible for the RTP Program;
• A traditional sale. Short sales, auctions, and REOs are not eligible for the RTP Program;
• Free from material deficiencies;
• No guest houses/ in-law suites with separate entrances;

7. Is there a required deposit? Yes. Generally, a deposit equal to two months’ rent is required. This deposit is not applied towards your 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. The full deposit (less any outstanding charges) is also returned to you if you exercise your Right to Purchase the home.

8. 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 we enter into a purchase agreement for a home until the day you can move in. Several variables may affect the move-in timeframe, including the length of negotiation with the seller, what the home inspection reveals concerning required repairs, and the renovations you request. You will be kept informed throughout the entire purchase and renovation process so that you are aware of this timing.

9. What happens after I move in? You are the tenant who has entered into a lease with a landlord for one year and are bound to the terms of that agreement. Rent will be collected monthly and the landlord will be responsible for any necessary repairs that are their responsibility after you move in.

10. 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 outlined in the Right to Purchase Agreement.

11. How do I exercise my Right to Purchase? You may notify the landlord at any time that the Lease is in effect that you would like to exercise your Right to Purchase. However, you must provide us with that notice in writing at least 60 days before you want to complete the purchase.

12. 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 written notice of your intent to exercise at least 60 days before you want the sale to close. Also, the closing date must occur before the end of the applicable Lease term.

13. Do you provide me with a mortgage or other financing? - The landlord is not a mortgage company and will not arrange a loan for you. Smith & Company will provide referrals but we cannot guarantee that you will be able to obtain a mortgage loan if and when you wish to exercise the Right to Purchase.

14. Can I have pets in my home? Residents are allowed a maximum number of three (3) pets (cats or dogs) weighing less than 180 pounds in total combined weight. The following dog breeds are prohibited (including partial mixes of same): Doberman, Pitbull, Rottweiler, or Mastiff. Further, livestock/farm animal pets such as pigs, horses, chickens and goats, aquariums over 20 gallons, and exotic, venomous, and verminous pets, are not allowed. In most states, there is a $300 nonrefundable per pet fee, refundable upon purchase of the home. Please note that supporting documentation is required for assistance animals qualify.