Overview

Our agreements are made in 3-year intervals.

You will initially sign an agreement that allows you to purchase the home at a set price. At the end of the 3-year term, you can choose to refinance with a regular mortgage or continue with us for another cycle, while still accumulating equity. Alternatively, if you decide to leave after the 3-year term and decide not to purchase the home, we'll return your accrued equity payment.

That’s why when we say we are a new Rent to Own option, we mean it.

Instead of dealing with high rates and high closing costs, we offer a comprehensive solution to homebuyers. We buy and fully renovate the property before transferring ownership to you at the end of your term. As a social benefit company, we are able to tap into the investment world that looks to deploy patient capital. Then when you are truly ready to purchase a home, you exit our program and apply your built-in equity to a mortgage product that now makes sense.


How does pricing work

At move-in.

Initial payment is 1% or 2% of the home value and documentation and application fees. No need to worry about points and excessive mortgage costs. The only fee you will need to pay will always be between $1,000-$2,000. We will never raise the price on you.

Each month.

The monthly payment is based on the price of the home. A portion of that payment goes towards your equity in the home. After a period of 3 years, you will have around 5%-8% equity in the home.

 FAQs

  • We accept credit scores above 500. Our innovative model looks at your financials in depth and does not solely rely on your credit. This partnership model allows us to follow you throughout your financial journey while also taking part of ownership.

  • Our income requirements have a minimum starting point of $3,750 per month.

  • NowFound Homes is currently active in Philadelphia County and Delaware County

  • Our company's focus is solely on the sale of newly remodeled homes, which sets us apart from other services. With an in-house design team, we replace appliances, flooring, HVAC systems, vanities, and more, essentially rebuilding the house from the studs up.

  • We work with homes that are anywhere from $50,000 all the way up to $350,000

  • Absolutely, if you have a specific neighborhood in mind and are not in a rush, our team can acquire a suitable property, strip it down to the studs, rebuild it from scratch, and allow you to closely oversee the design process to create a home that reflects your personal style.

  • The only fee attributed to this product, that is not considered equity, is the $1,000-2,000 documentation prep fee. We cover all closing costs at the time of purchase and you cover the closing costs once the home is transferred over to you.

  • We get it, plans change! Depending on the year you leave there is a relisting fee. This fee is subtracted from the built up equity before we pay you out of your equity share.

  • The Partnership Agreement serves as the first step towards buying your new home. It sets out the terms of our partnership for purchasing a home on your behalf. Moreover, the property will be acquired through an LLC, and the operating agreement will detail the specifics of our partnership. This includes important information such as the option to purchase, equity cash-out provisions in case you decide to relocate, and other key partnership details.

  • Unlike many companies that include closing costs and fees in the home purchase price, we do things differently. When we start our partnership, we cover all closing costs on the home, so you won't have to pay them twice. If you choose to purchase the home with another mortgage company or pay cash at the end of the fifth year, you will be responsible for the closing costs. Since we don't have any agent fees, these costs are minimal. You also have the option to renew the term for another 5 years and continue to build equity, just like with a traditional mortgage. Once you reach the 30-year mark and the house is fully paid off, we will remove ourselves from the LLC that owns the house and transfer ownership to you as the sole owner of the home. With this option your only fee is the initial $1,000-$2,000 charge. Your monthly occupancy fee is the your ongoing cost, however, a part of that is equity.

  • NowFound Homes earns money from the monthly rent payments. If you decide to buy us out of the partnership then we also earn money from the appreciation, however, if you finish your 30 year term with us we do not share into the appreciation, just the monthly rent. The purpose of the monthly partnership fee is to cover our operational expenses and provide a product that enables individuals who have historically been excluded from the home buying process to own a home, not years down the line, now.

  • Our operations are focused on two counties in Pennsylvania, specifically Philadelphia County and Delaware County.

  • Should you decide to extend the Partnership Agreement, your fixed monthly payment will be recalculated and our partnership fee decreases as you accumulate more equity. At the sixth-year mark, a new purchase value for the home will be determined. For instance, if the original agreement stipulated a $255,000 purchase price at the third year, this price might have increased to $275,000 by the sixth year. Assuming your initial purchase price was $255,000 and you now have 10% equity, you will also benefit from 10% of the appreciation. This means that you have gained $2,000, which can be applied toward the $275,000 balance.

  • Your monthly payment is due on the 1st of each month, with a five-day grace period. Failure to submit payment by the 5th day will result in a breach of the NowFound Partnership Agreement, and you will receive a notice of late payment. If the issue is not resolved promptly, customers in default may have to vacate the property.

  • You can choose to temporarily halt incremental equity buys and pay only for occupancy, resulting in a reduced monthly payment, or you can keep making fixed monthly payments to increase your equity further. Your built in equity will be saved and can be used for when you want to purchase the home or will be given back when you move out.