The Process (7 Easy Steps)

Step 1: Quick Phone Call to Determine Your Needs and Develop a Plan

Once it has been determined that you pre-qualify by completing the qualifying questions on the Do I Qualify page, an HES representative will have a preliminary phone conversation with you to determine your needs, develop a plan, and answer any questions. If you would like to proceed, we will send you a copy of our agreements and an estimated disclosure of rental amounts and fees. If you like the plan and want to move forward, we will enter into a preliminary agreement to pursue the purchase of your property. HES will then order a credit report and background report. After the results of the credit and background reports are obtained, HES will draft a formal purchase agreement for review and execution.

Step 2: Inspection

Once the purchase agreement has been executed, HES will order a professional home inspection by an independent inspector. The sale will be contingent upon the inspection and condition of the home. If the inspection confirms that your home is in satisfactory condition, no repairs will be required of you. If the home is not in satisfactory condition, HES will require that you make the necessary repairs prior to closing in order to proceed with the sale.

Step 3: Appraisal

HES, or an affiliate, will order a professional appraisal by an independent appraiser. The sale and purchase price specified in the purchase agreement will be contingent on the appraised value. Once the appraisal has been obtained, HES will make you aware of the maximum amount that can be paid for your home, which is up to 70% of the appraised value. If you would like to proceed with the sale after the final purchase price has been determined, we will proceed to closing.

Step 4: Closing

After all associated debts, liens, and closing costs are paid, you will keep the remainder of the purchase price.

Step 5: Rent

As a stipulation to closing, you will enter into a five-year rental agreement with HES. Your rental amount will never change and you can cancel the rental agreement at any time by buying the home back, or selling it to a third party.   

Step 6: Buy Back or Sell

As a second stipulation to closing, you will enter into a five-year buy/sell option agreement to purchase the home from HES for the price paid, or sell the home to a third party and pocket any equity beyond the amount owed to HES.

Step 7: New Rental and Buy/Sell Option Agreements

If you do not want to buy the home from HES, or sell it to a third party before the end of the fifth year, you may apply for a new rental agreement and buy/sell option agreement, the terms of which will be determined at the time of application. In this instance, another appraisal and home inspection will be ordered by HES to ensure that sufficient equity exists, and that the home is in satisfactory condition. An updated credit and background report may also be required. 

If the house is not in satisfactory condition, or it is determined that less than a satisfactory equity position exists, you will be required to buy or sell the home before the end of the fifth year, make the necessary repairs, and/or reestablish a satisfactory equity level by making a capital payment to HES. This process can continue every five years.