Lease Purchase Program
Frequently Asked Questions
- What is the VHCDC Lease Purchase Program?
- How does the Lease Purchase Program work?
- Where are the properties located?
- Can I renovate or make changes to the property?
- Can I sublet the property?
- What is the minimum FICO score?
- Can I participate in this program if I have filed bankruptcy?
- Is any part of my lease payment applied to the downpayment?
- How long does my approval last?
- How do student loans affect my lease approval?
- How much does it cost to apply to the Program?
- How much is the security deposit?
- Are pets allowed?
- Is there a Pet fee?
- Will my rent ever increase?
- Are the homes new or previously owned?
- I have a question that isn't on this list. Now what?
The Program enables you to shop for a single-family home and lease it for up to five (5) years, with the exclusive Right to Purchase. The lease amount and purchase price are presented in writing in advance of your lease. You must purchase the property or move out of the property at the end of the Exclusive Right to Purchase period (5 years).Back to top
Our Housing Services Office will send you an invitation to fill-out a Pre-Qualification Application. If the Pre-Qualification Application is approved, you will be eligble to submit a Full Application for a full credit and background check. If the Full Application is approved, you will be provided the Maximum Monthly Rent for which you qualify. You will then be assigned a certified VHCDC Lease Purchase Program Agent to work with you to find a home in an approved community (Hampton Roads and Richmond Metropolitan Area). Our leasing company buys the home (if approved for purchase) and prepares it for occupancy. Once purchased, you will be required to sign a one year lease for the home, pay your security deposit (up to 2 months rent), and sign the Right to Purchase Agreement. You lease the home and have the right to buy it later, should you wish. After securing the purchase, you can move in after the home has been cleaned and prepared for occupancy, and that's it!Back to top
Our LPP Agents (realtors) will search the Multiple Listing Service (MLS), For-Sale By Owner (FSBO) Listings, and other listings for new and previously-owned, single-family homes for sale in your area for you to choose. The properties are located within our service areas, which include Hampton Roads (Chesapeake, Hampton, Newport News, Norfolk, Portsmouth, Suffolk, and Virginia Beach), the Richmond metropolitan area, and northern Virginia (DMV). Eligible homes must be at least two bedroom houses on 2 acres or less of land and not located in or near any commercial or industrial area.Back to top
No. You cannot make any alterations other than what is typical when renting an apartment - painting the walls, installing window dressings and shelving, hanging pictures, etc. You can, however, make any alterations you would like when you purchase the property.Back to top
No. You cannot rent any part of the property to anyone else, including temporary boarders, etc. The property can only be leased to you and occupied by you and your immediate family.Back to top
The minimum FICO score for this program is 580 (TransUnion).Back to top
Yes. You may apply one day after your bankruptcyy has been discharged. You may not apply while you are in a reorganization plan (Chapter 13) or your bankruptcy has not yet been discharged.Back to top
No. No part of your lease payments can be applied towards the down-payment because you are only leasing the property. If you decide to purchase the property you can assign or pledge your security deposit as down-payment on the purchase. If you decide not to exercise your Exclusive Right to Purchase, you are free to move out and receive a refund your security deposit - provided you are not delinquent on your lease and have not damaged the property beyond normal wear and tear.Back to top
Your approval will expire in 180 days.Back to top
Student loans do not impact your lease application, except to the extent they lower your FICO score. Student loans may be a factor when your apply for a mortgage loan to purchase the property. Please discuss your situation with our Housing Services Office.Back to top
The fee for Virginia applicants is $35.00.Back to top
The security deposit for Virginia is two (2) months rent.Back to top
Up to 3 pets (cats or dogs) weighing less than 180 pounds in total combined weight are allowed. All dog breeds are allowed. However, certain dog breeds may be restricted by local regulations and Homeowner’s Association rules. Further, livestock/farm animal pets such as pigs, horses, chickens, and goats, aquariums over 20 gallons, and exotic, venomous, and verminous pets, are not allowed.Back to top
Yes. There is a one-time $300 non-refundable per pet fee, and $30 monthly rent for up to 3 pets.Back to top
The lease amounts and sale prices are provided up front, so you will know in advance how much your lease will be each year you remain in the property. If you choose not to renew your lease or purchase the property you are free to move out and lease or buy another property. You may not, however, enter into another lease agreement under this program.Back to top
Both. You have the opportunity to lease new construction, if more than 50% of the houses in the development are complete. You may also lease a previously-owned home. The choice is yours...Back to top