About the Program
A wide selection of homes fit the Cavalry Homes business model so you can work with the real estate agents and mortgage lenders of your choice. Upon approval, you will be accepted into the program and Cavalry Homes will purchase the home you have selected. With a competitive Lease and Right to Purchase the home in place, you are one step closer to home ownership.
The Math/Econ Model
- At closing the client will provide 5% of the total purchase price of the home to be held in escrow as the Client’s Right to Purchase Option
- The Client provides one month’s rent as a Security Deposit on the Lease
- During the course of the Lease the Client makes regular, on-time monthly payments via direct deposits
- On the yearly anniversary of the Lease, both the Right to Purchase Price and lease rate increase
- Once the Client is ready, they execute their Right to Purchase Option, move to close on the home and the 5% Purchase Option Consideration and Security Deposit are returned to the Client
- The Right to Purchase Price may be higher or lower than the value of the home
- Cavalry Homes is not a mortgage company, does not have any obligation to provide or arrange a mortgage loan and cannot guarantee that a resident will be able to obtain a mortgage loan
- The client may not be able to exercise their Right to Purchase Option because he or she may not qualify for a mortgage loan from a third party lender
Frequently Asked Questions
What Is the Term of The Lease?
What Happens When My Lease Is Set to Expire?
Exercise Right to Purchase Option: Tenant/Buyer provides 30 days written notice any time after the first 12 month lease period of their intention to exercise the Purchase Option.
What Happens To My Security Deposit When...
Break the Lease Term: Landlord retains the entire Security Deposit.
Exercise Right to Purchase Option: Landlord returns entire Security Deposit back to Tenant/Buyer.
What is the Right to Purchase: The Right to Purchase Option allows the client to purchase the home at a predetermined price.
What Is The Right to Purchase Option?
How Much Is The Purchase Option Consideration?