Questions & Answers
ABOUT OUR PROGRAMS
New City Homes has a variety of options to fit just about any housing need. We typically offer homes available for rent, lease-purchase, and sale. To help you understand the options further, we offer the following commonly asked questions and answers. We encourage you to call and speak with an associate to review your specific needs and goals.
What is the difference between Rent and Lease Purchase? With a rental agreement you are simply renting the property for the agreed upon rental term with a refundable security deposit. Upon completion of the rental agreement and proper move-out, we process the security deposit return in accordance with the rental agreement. If you Lease Purchase, you commit to purchasing the home at the agreed upon purchase price within the agreed upon term. There is no security deposit. Instead, there is a down payment requirement which is applied 100% to the purchase. The biggest difference is whether you want to commit to purchasing the home.
What is a Lease Purchase? The Lease Purchase program provides you with an initial three-year period to purchase your home at any time. This purchase window provides you with the flexibility you need to put yourself in a position to qualify for financing and complete the purchase. After you find the right home, you sign a lease agreement and a purchase contract. The purchase price is locked-in for the three-year term, so you know exactly what you are going to pay when you buy your home. After you start your agreement, you improve your credit and finances so you can qualify for a home loan and purchase the home anytime during the three-year contract. 100% of your down payment is applied toward your purchase and you can use the lender of your choice.
Why is Lease Purchase a good alternative? The Lease Purchase program was established because not everyone is able to qualify for financing and buy a home right away. Many people have hurdles to clear that affects credit and finances. The Lease Purchase program was designed to provide a springboard to home ownership. The Lease Purchase program provides our customers with the ability to move into a home now and purchase later. We offer this option on a variety of homes including fully remodeled properties and new construction.
Does the monthly payment apply to the purchase? You earn a monthly credit for each on-time payment. The total credit is tallied when you are ready to buy and can be used toward your home purchase. Most lenders allow this seller credit to be used toward the buyer's closing costs and loan fees. Making regular on-time payments is a great way to build up substantial credit for your future purchase.
How much down payment is required? Down payment requirements vary depending on the home and an applicant's history. We advertise down payment minimums on our website when Lease Purchase homes are available to provide customers a good idea of the financial requirements necessary to participate in the Lease Purchase program. Typically, we require down payments that are less than what a lender requires. This allows you to get a start on your future down payment that will be required by your lender and offers a lower cost option to begin your home buying process.
Does your down payment go toward the purchase price of the home? Yes. The money you put down into your home goes 100% toward your purchase price. As an example, if you put $10,000 down on a $330,000 home you would then owe $320,000. The $10,000 down payment is applied completely to the purchase price of the home as part of your down payment requirement when you obtain financing with the lender of your choice.
Can you be flexible with the down payment? Yes. Flexibility is the key to putting together a deal that works well for everyone. Based on your application and needs we may be able to offer flexible arrangements on completing the down payment obligation.
Is good credit required? We are flexible on credit the credit score. We do abide by the following credit requirements when reviewing an application: No new credit collection within the past 12 months. No late payments on credit obligations within the past 12 months. No eviction filings within the past 12 months for any reason. Please call our office and speak to an associate if you wish to review your specific situation as exceptions can be made.
What if I have a Bankruptcy? If you have a bankruptcy that was successfully discharged, we may be a good fit for your needs. Typically, lenders require a borrower to be several years removed from a discharged bankruptcy prior to qualifying for a mortgage. We do require bankruptcies to be discharged prior to contract signing and occupancy. If you have an active bankruptcy, we can discuss your situation and timeline and put a plan in place so you can move forward at the appropriate time.
What if I need more than three years to complete my purchase? The initial term of the Lease Purchase Program is three years, and you can complete the purchase at any time. You do not need to wait once you can qualify for a loan. In some instances, our customers need additional time to qualify for financing. The contract has a built-in extension to provide for a fourth year. Your down payment and on-time payment credit earned during the initial contract term will be honored if you buy during the fourth-year extension.
What is the application process?
All adults who plan to occupy the home must complete their own application. We require a non-refundable $65 application fee per application that can be paid securely online during the application submittal. Before proceeding with the application, please make note of our review criteria:
• Good rental history.
• Good affordability. You will be asked for your total monthly gross income (income before taxes) and expenses.
• Income verification will be completed through a secure link provided by Experian to verify your monthly income and deposit dates through your bank account. In the event you skip this step, we will verify your employment through the Work Number. One of the two verifications must be completed for final approval if your affordability is not tied to a Housing Voucher.
• No drug offenses, no weapon offenses, no violence/crimes against a protected class within the last five years.
• No eviction filings within the past 12 months for any reason.
• No new credit collections within the past 12 months.
• No late payments on credit obligations within the past 12 months.
Does New City provide appliances? Each home is different and you will see what appliances are offered when you tour a home. Most of our homes come with a dishwasher and microwave and some have a full appliance package. If a home does not have appliances we can provide those kitchen appliances for an additional monthly fee.
What is New City's Pet Policy? A small dog under 35 pounds and over a year old may be accepted with an additional down payment or deposit as well as a monthly fee of $50. Due to insurance requirements we do not allow the following types of dogs: Akitas, Alaskan Malamutes, Belgian Malinois, Chows, Dobermans, German Shepherds, Great Danes, American Indian Breed, Huskies, Mastiffs, Pit Bulls, Rottweiler's, St Bernard, American Staffordshire Terrier, Presa Canario, King Corso, Dogo Argentino and Wolf Hybrid. If you have other types of animals, contact the office to discuss approval prior to applying.
Are Service Dogs accepted?
Nationally registered Service Dogs are accepted with appropriate documentation.
Are Emotional Support Animals (ESAs) accepted?
We accept ESAs with proper documentation. Property owners are NOT required to make reasonable accommodations for Emotional Support Animals (ESAs) under the Fair Housing Act in the following cases:
- Buildings with 4 or less units where landlord occupies one of the units
- Single family housing sold or rented without a real estate broker
- Hotels and Motels are not considered dwellings under the FHA but are considered places of public accommodation under the Americans with Disabilities Act
- Private Clubs
Is the Lease Purchase Program available if you have good credit? Yes. In today's tight housing market many buyers are unable to purchase a home due to low inventory and high competition. Our inventory provides an alternative option to finding a quality home whether you want to buy through our Lease Purchase Program or rent with us.
If I am interested, what do I do next? Check our inventory online and call us at (614) 972-7799 for any additional information or questions. We look forward to working with you.