Welcome to KeyGrow's Homeownership Workshops

Complete the Registration Form: Participants begin by filling out a registration form on the KeyGrow website, providing details such as income, credit score, home preferences, and timeline for transitioning to ownership.

Review and Approval: The KeyGrow team reviews the information to ensure that the participant is a good fit for the program. Factors such as financial readiness, credit status, and timeline are assessed.

Consultation with KeyGrow Team: After approval, participants meet with the KeyGrow team to discuss their specific needs, including home preferences (location, size, features) and budget.

Property Search: The KeyGrow team works with participants to identify homes that fit their preferences. Properties are sourced from a network of agents, MLS listings, or off-market opportunities.

Property Selection: Once a suitable home is found, KeyGrow collaborates with the participant to secure the property, ensuring it meets program requirements (such as affordability and equity-building potential).

$500 Good Faith Deposit: To secure the property and show commitment, participants pay a fully refundable $500 good faith deposit. This deposit is refundable if a home is not secured within a 1-3 month period.

Credit and Financial Review: Throughout the rental period, participants work with KeyGrow to improve their financial standing and credit score, if necessary, to prepare for mortgage approval.

Credit Counseling: If needed, KeyGrow provides access to credit counseling resources, helping participants improve their credit score and increase their chances of securing a mortgage.

1. Rent-to-Own / Lease Option

How it Works: The client rents a home for a set period, with an option to purchase the property at the end of the lease. A portion of the monthly rent is credited toward the purchase price.

Benefits: This option allows clients to build equity while renting and gives them time to improve their credit or financial situation before committing to a mortgage.

Best For: Clients with limited upfront funds or lower credit scores who need time to prepare for full homeownership.

2. Seller Financing (Owner Financing)

How it Works: The seller acts as the lender and finances the purchase directly. The buyer makes payments to the seller over time, instead of securing a traditional mortgage from a bank.

Benefits: No need for bank approval, more flexibility in payment terms, and potentially lower upfront costs.

Best For: Clients with credit challenges, non-traditional income, or those who may struggle to get approved by conventional lenders.

3. Subject-To Financing

How it Works: In a "subject-to" deal, the buyer takes over the existing mortgage payments from the current homeowner, leaving the original loan in place.

Benefits: No need to qualify for a new mortgage; the buyer simply makes payments on the seller's existing loan. This method may offer better interest rates compared to new financing.

Best For: Clients with limited creditworthiness but enough cash flow to cover mortgage payments.

4. Wraparound Mortgage

How it Works: This is a type of seller financing where the buyer takes on the seller’s existing mortgage and pays the seller an additional amount to cover the full purchase price of the home. The seller continues to pay the original loan while receiving payments from the buyer.

Benefits: Flexible terms, and it allows the buyer to potentially secure better financing than they would qualify for with a traditional loan.

Best For: Buyers who need creative financing solutions, especially when market rates are higher than the seller's mortgage rate.

5. Private Money Lending

How it Works: Private lenders (individuals or companies) offer loans to clients, often secured by the property itself. These loans typically have higher interest rates but less stringent qualification criteria compared to traditional banks.

Benefits: Quicker approval process, less focus on credit scores, and more flexible loan terms.

Best For: Clients needing quick access to funds, clients with non-traditional income sources, or those purchasing investment properties.

6. Hard Money Loans

How it Works: Hard money loans are short-term, asset-based loans secured by the property itself. They usually have higher interest rates and shorter repayment terms but are based more on the value of the property than the borrower’s creditworthiness.

Benefits: Fast approval process, and the loan is based on property value rather than credit score.

Best For: Clients looking to purchase a property that needs renovation, or those who plan to refinance or sell the home quickly.

7. Joint Venture (JV) Financing

How it Works: In a JV, a partner provides the financing, and the buyer manages the property. Both parties share profits based on an agreed-upon percentage.

Benefits: No need for a traditional loan; the financing partner covers the costs, and profits are shared.

Best For: Clients looking to invest in real estate but lacking sufficient funds for a down payment or mortgage approval.

8. FHA Loan with Down Payment Assistance

How it Works: Clients can apply for a low-interest FHA loan, which requires as little as 3.5% down. Pairing this with down payment assistance programs can reduce or eliminate the upfront cost for qualified buyers.

Benefits: Low down payment requirements and more lenient credit score thresholds.

Best For: First-time homebuyers or clients with limited down payments.

9. Home Equity Partnerships

How it Works: A third party (usually an investment company) provides funds in exchange for a percentage of the property’s future equity appreciation. The client doesn’t need to make monthly payments; the investor is repaid when the home is sold or refinanced.

Benefits: No monthly payment requirements; clients can access funds without taking out a traditional loan.

Best For: Clients who want to avoid additional monthly payments but need help with down payments or repairs.

10. Crowdfunding for Real Estate

How it Works: Buyers can raise funds through a network of investors or friends/family who contribute small amounts. Platforms like TribeVest or other crowdfunding platforms make this process accessible.

Benefits: Flexible funding sources, no need to qualify for traditional loans.

Best For: Clients with strong social networks or those looking to finance a property creatively.

11. Lease Purchase Agreement

How it Works: Similar to rent-to-own, but with a binding agreement for the tenant to purchase the property at the end of the lease period. The purchase price is agreed upon at the beginning of the lease.

Benefits: Fixed purchase price, and a portion of the rent goes toward the down payment.

Best For: Buyers who are certain they want to purchase the property and need time to prepare for the final purchase.

The Transition to Ownership and Final Purchase Agreement is the concluding stage in the KeyGrow Program, where participants officially move from renters to homeowners. Here's how this process typically works:

1. Final Review of Financial Readiness

Credit Score & Financial Standing: Before transitioning to ownership, participants will undergo a final review of their credit score and financial situation. If necessary, KeyGrow will help with any last steps required to secure financing or complete credit improvements.

Savings & Down Payment: Participants should ensure they have enough savings to cover any required down payments or closing costs, though these may be minimized by equity built through rent payments.

2. Mortgage Approval

Secure Financing: Participants will need to secure financing, typically through a traditional mortgage or alternative financing options (like FHA loans, seller financing, or private money lending). KeyGrow assists in connecting participants with lenders or offering guidance to ensure a smooth financing process.

Finalize Loan Terms: Loan terms, such as interest rate, down payment, and mortgage duration, will be finalized between the buyer and the lender. The equity built during the rent-to-own period can be applied as part of the down payment.

3. Property Appraisal and Inspection

Appraisal: A professional appraisal will be conducted to determine the current market value of the property, ensuring that the purchase price reflects the home’s value.

Inspection: A home inspection may also be required to assess the condition of the property and identify any necessary repairs or improvements. If any issues arise, they can be addressed before the purchase agreement is finalized.

4. Negotiation of Purchase Agreement

Purchase Price: The final purchase price of the home is agreed upon, often based on the price established in the original rent-to-own agreement or adjusted based on the appraisal and inspection results.

Down Payment and Credits: Any equity accumulated during the rental period will be applied toward the down payment, reducing the amount the buyer needs to bring to closing. This is especially advantageous for buyers who have already contributed through their rent payments.

5. Legal Documentation and Finalization

Final Purchase Agreement: The legal document that outlines all terms of the sale, including the purchase price, down payment, and any remaining terms from the rent-to-own arrangement, is drawn up. This agreement protects both the buyer and the seller and ensures all parties are on the same page.

Attorney or Title Company: A real estate attorney or title company will oversee the closing process, ensuring all legal and financial documents are in order.

6. Closing the Deal

Settlement & Closing Costs: During the closing, participants will pay any remaining settlement or closing costs. These can include legal fees, title transfer fees, and taxes. KeyGrow works with participants to ensure they are financially prepared for this stage.

Title Transfer: The title to the property is officially transferred to the buyer, making them the legal owner. At this point, the buyer receives the keys to their new home.

7. Post-Closing Steps

Moving In: After the closing is completed and the property title is transferred, the participant can officially take full possession of the home if they have not already been living in it.

Mortgage Payments: The new homeowner begins making regular mortgage payments as per the terms agreed upon in the loan.

Ongoing Support: If needed, KeyGrow continues to provide support for new homeowners, offering resources for managing homeownership, budgeting for repairs, and more.

Benefits of the Transition to Ownership:

Equity Building: Rent payments contributed toward ownership help reduce the amount needed for a down payment.

Reduced Closing Costs: By applying accumulated equity, participants may face lower closing costs, making the final purchase more affordable.

Ownership Security: Transitioning to ownership solidifies long-term housing stability, protecting against rising rents and enabling participants to build wealth through home equity.

Summary of the Transition to Ownership Process:

1. Financial Readiness Review

2. Mortgage Approval

3. Appraisal & Inspection

4. Negotiation of Final Purchase Agreement

5. Legal Documentation & Title Transfer

6. Closing the Deal

7. Post-Closing Support