The numbers
What you pay to move in, what you pay each month, and what comes back to you when you buy.
What it costs to move in
You pay one amount when you move in. We call it Cash for Keys. A lot of people hear that and think it is a fee on top of everything else. It is not. It is three normal things added together.
One home, one move in day
- Security depositone month's rent, and it comes back to you
- $1,595
- Option feeall of it comes off the purchase price
- $6,900
- First month's rent
- $1,595
A real example: a $169,900 home renting at $1,595 a month. Your home will have different numbers, and they are shown with that home.
Two rules do the work:
- Your deposit is one month's rent.
- Your deposit and option fee together come to 5% of the purchase price. Above, $1,595 plus $6,900 is $8,495, which is 5% of $169,900. That amount becomes your down payment when you buy.
The option fee matters most. It buys you the right to purchase the home, and 100% of it comes off the purchase price when you buy.
The deposit starts out as an application deposit, which is what holds the home for you once you sign. On the day you move in it becomes your security deposit. It is the same money the whole time, and it comes back to you when you buy the home.
The exact amount for a specific home is shown with that home.
Two ways to pay it
There are two, and you pick one after your overview.
Pay it in full
$10,090on move in day
$1,595a month after that
You pay the deposit when you sign, which holds the home. You bring the balance by money order or certified check when you are getting your keys.
Use the payment plan
$6,000on move in day
$1,795a month: $1,595 rent plus a $200 option fee
You bring less on day one. In exchange you pay an extra $200 a month on top of your rent.
That $200 does not stop at 5%. It continues every month until you buy the home, and all of it counts toward your purchase.
The payment plan amount is set for each home, so that neither way of paying is a better or worse deal for us than the other.
One thing to plan for: on a payment plan we look at your rent and your $200 option fee together when we check what you can afford.
There is also a $25 application fee for each person in the household who is 18 or older. That is separate and you pay it when you apply.
You build a credit every month you live there
Separate from the option fee, part of each month's rent is credited toward your purchase. It adds up the whole time you are in the home and comes off the price when you buy.
The amount is different for every home, usually between $50 and $200 a month. It is set from the rent and from what it would cost to handle the yard work, the snow, and the general upkeep that is your responsibility in this program. Almost every home has one, and yours is written in your agreement.
In the example above it is $120 a month. Over 21 months that is $2,520 off the purchase price, on top of your option fee.
What you pay for month to month
You are renting, so we carry the building. Some of it is yours, and it is mostly the same things that will be yours when you own.
Strong Blocks pays for
- repairs and maintenance
- property taxes
- property insurance
You pay for and take care of
- heat and electric
- water, sewer, and trash Billed to us, added to your ledger, reimbursed by you. It is your usage, so it is your charge.
- mowing and shoveling
- keeping the yard and house clean
- renters insurance
Duplexes are the one exception. One water bill covers the whole building, so we pay it and it is not billed back to you.
Your overview walks through the estimated monthly cost of each one for your specific home.
Two things that can add to your monthly costs, and both are avoidable: damage or neglect that gets charged back, and upgrades you ask for.