NSP FAQ
Q

What is a lease-purchase program?

Date Published: February 2013

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Lease-purchase is a program where a home is rented for a period of time to a prospective buyer. The grantee should work with the renter to ensure that they have improved or repaired their credit and saved enough to purchase the home. Applicable regulations are found at 24 CFR Part 92.254 (A)(7). However, NSP has allowed longer lease periods than the HOME regulations do and has allowed temporary rentals for longer than three years. In these cases, renters should be allowed first right to purchase the home, but if not exercised, the home may be sold to another buyer. In such cases, the tenants should receive move-in notices as described below to avoid relocation requirements.


Tags: NSP Lease-purchase

FAQ ID:

694