Rent to Own Program
In 1993 a two family home was bequeathed to Interfaith Neighbors and subsequently rehabbed in Long Branch. Ownership of this home was retained by Interfaith Neighbors for use as a transitional housing facility. Very often, it is saving for the down payment and closing costs that is most difficult for working poor families to accomplish and necessary to be able to purchase a home. Interfaith Neighbors has developed what we call our “Rent to Own” program to address this problem.

Working with our rental assistance clients, we identify families that want to move from renting to homeownership. We provide homeowner and credit counseling to be sure that they are ready for the transition. The family signs a one year lease and pays a monthly rental fee that is below market rate for that home. Out of their rental payments, Interfaith Neighbors escrows $600.00 per month to be used toward the down payment on a home. At the end of the one year lease period, the family has accumulated $7, 2000.00 toward a down payment.*

To date, this program has housed fourteen families, seven have become homeowners and seven have secured affordable rental units.

* In situations where homeownership is not available, the money can be returned in the form of a monthly rental subsidy.