The program
How this compares
Against rent-to-own, and against a normal FHA mortgage.
Against rent-to-own
| Typical rent-to-own | Earned Equity Program | |
|---|---|---|
| Who picks the house | Often the company, from its inventory | You do, on the open market |
| Purchase price | Often set later, at future market value | Locked at your negotiated price on day one |
| Your payment | Rent, plus a small credit | Amortizes on a 40-year schedule |
| Who gets appreciation | Often the company | You. No shared appreciation or shared equity |
| Time to buy | Typically 3 to 5 years | Up to the term of the agreement |
| Underlying financing | Varies, often opaque | FHA 203(b) insured mortgage |
Where the comparison is fair and where it is not
The rent-to-own column describes what is common in that market. It is not a claim about any particular company, and there are honest rent-to-own operators. The differences we can source from the EEP documents are the locked price, the FHA-insured financing, and the absence of shared appreciation.
Against a normal FHA mortgage
| Regular FHA mortgage | Earned Equity Program | |
|---|---|---|
| Who is on the note | You | The agency |
| Who is on the deed at closing | You | The agency |
| Credit standard | FHA minimums, lender overlays | 580, with exceptions below that |
| ITIN accepted | Generally no | Yes |
| DACA | Case by case | Explicitly eligible |
| Cost | Lower | Higher: rate margin plus program fees |
| Amortization | 30 years | 40-year agreement schedule |
Our actual advice
If you can qualify for a regular FHA or conventional mortgage, take the mortgage. It is cheaper, it is simpler, and your name is on the deed at closing. This program is for the case where the answer to a normal mortgage was no, and the reason had more to do with documentation than with whether you can afford the house.
Get connected
Every application goes through a licensed loan originator.