RENTAL QUALIFYING REQUIREMENTS

APPLICATION TERMS

• Primary Applicant / Co-Applicant: All individuals over age 18 who will reside in the home and are financially responsible for making lease payments, and who will sign the lease agreement and uphold the lease obligations. The Applicant who starts the application process is referred to as the “Primary Applicant”. All others with similar responsibilities are referred to as “Co-Applicants”.
• Adult Applicant: All individuals over age 18 who will reside in the home who are notfinancially responsible for making lease payments but must uphold all other lease obligations.
• Non-Resident Guarantor: An individual over age 18 who will be financially responsible for lease payments but does not reside in the leased home. The Non-Resident Guarantor will be required to sign the Lease Agreement and/or a Guarantor addendum. Guarantors may be accepted for applicants who do not meet certain financial qualification requirements.

QUALIFICATION REQUIREMENTS

All applicants will undergo a screening process, which includes a review of the applicant’s credit history, previous rental history and criminal history. To qualify for residency with Headway Homes, each Applicant must meet the requirements detailed below. Please note: nothing contained in this document constitutes any guarantee of approval.

AGE

Each Applicant must be at least 18 years of age.

OCCUPANCY

Occupancy standards allowable cannot exceed 2 persons per bedroom, plus one additional person per home, unless otherwise dictated by local, state or federal law.

Number of Bedrooms | Occupancy Standard

• One Bedroom      |  Three Persons
• Two Bedrooms    |  Five Persons
• Three Bedrooms |  Seven Persons
• Four Bedrooms    |  Nine Persons
• Five Bedrooms     | Eleven Persons

Residents who exceed these occupancy standards during the lease term, will be required, upon the end of the current lease term, to either:

• Transfer into another available home which has more bedrooms; or
• Move out

IDENTIFICATION

Applicant(s) must present valid photo identification issued by any state or federal authority of the United States. Documents must be uploaded in PDF or picture file format (such as jpg, jpeg or png). Acceptable ID documents include:

• State-issued Driver’s License
• State-issued Identification Card
• U. S. Passport or Passport Card
• U.S. Permanent Resident Card
• U.S. Military ID Card (front and back of ID needed)
• Valid Foreign Passport along with valid work visa issued by the United States with an expiration date longer than the proposed lease termination date

INCOME

Applicant(s) must earn total monthly gross income equal to four(4) times the total rent of the selected home. Non-Resident Guarantor(s) must earn a total monthly gross income equal to five (5) times the total rent of the selected home.

EXAMPLE*
Monthly Rent = $1,000.00
Minimum Combined Monthly Gross Household Income = $4,000

*We consider many factors when evaluating applicant’s ability to pay rent. The example above is for illustrative purposes only and does not guarantee that you will be approved. Some credit scoring results will necessitate further income verification. In such instances, verification with employer will be completed or applicant may be asked to produce additional financial statements/records.

Additional sources of verifiable income may be considered. These sources may include: child support, grants, pensions, GI benefits, disability, trust funds, social security and savings accounts

Applicant(s) must upload one or more of the following forms of documentation to fully substantiate the monthly income stated on the rental application. Accepted forms of documentation in order of preference are detailed below. Documents must be uploaded in PDF or picture file format (such as jpg, jpeg or png). If the documentation uploaded does not demonstrate the monthly income stated on the application, the Applicant(s) will lost their place in line for the property applied for and additional documentation may be requested for review.

Applicant Status/ Income Documents Required

Employed (currently)

• Pay stubs for the last 30 days OR
• Applicants who have been with current employer for fewer than 30 days should provide any paystubs received AND an Employment Verification Letter confirming date or employment and terms of compensation OR
• 30 days of most recent bank statements showing all employment income deposits if employee is paid by direct deposit OR
• 90 days of most recent bank statements when payroll is not received as direct deposit into the applicant’s bank account OR
• Submission of a W2 or 1099 supported by most recent paystubs OR 30 days of most recent bank statements showing employment income deposits

Employed (starting a new job)

• Signed and dated offer letter on official company letterhead with hourly rate (specifying how many hours will be worked each week) or annual salary. Must include start date along with recent paystubs from current employer. Employment will be verified during the screening process.

Self-employed If self-employed / business owner, the business must have been in operation for at least 90 days.

• 90 days of most recent bank statements AND
• Copy of business license that validates ownership

Retired

• Current statement showing pension, IRA or any other supporting retirement income from issuing agency OR
• 90 days of most recent bank statements showing the deposits of retirement income

Social Security, Disability, GI Benefits etc.

• Award letter or statement from issuing agency

Child Support and Alimony

• Award letter (if available) AND
• 30 days of most recent bank statements showing the deposits of support

Financial Aid

• Formal financial aid documentation that specifically reflects Room & Board allowance. Aid must be currently active.

Renter's Insurance Requirement

Residents are required to carry Property Loss and Personal Liability Insurance coverage. In addition, we ask that you identify the home as a “Party of Interest” or “Interested Party” (or similar language as may be available) on the renter’s liability insurance policy. Proof of this coverage is required at lease renewal and/or time of possession. Discounted insurance is available please ask your leasing agent for more details. Water Furniture will only be allowed with proof of fully paid insurance for the term of the lease.

security deposit levels

The results of the credit score will determine the amount of the security deposit. Security deposits start at a full month’s rent. Additional deposits may be required for contingent scores. Section 8 applicants qualifying criteria and deposit levels might vary. Please see your leasing agent for details.

CREDIT REQUIREMENT

To verify credit rating, a credit report using a third party agency will be obtained on all adult applicants financially responsible for lease payments. All open collections, charge-offs, repossessions and delinquencies may be taken into consideration during review of credit report. All applicants must have a FICO score of 500 or higher.* Non-Resident Guarantors are required to have a FICO score of 620 or higher. These credit ratings will be used in the following manner to determine security deposit requirements if the application is approved:

Credit ScoreDeposit

Less than 500 Ineligible (Declined unless special circumstances)

500 – 5791.5-months security deposit**

580 or higher1-month security deposit

*If no FICO score or a credit report is available, the application may still be considered but applicant(s) must earn a gross monthly income equal to 5 times the total rent for the home selected and 1.5-month security deposit would be required if approved.

**In accordance with Alabama law, a landlord may collect no more than one month’s rent as a security deposit. Therefore, all Alabama applicants with a FICO score of 500 – 579 must earn a gross monthly income equal to 3.5 times the total rent to be eligible for a Headway Homes property in the State of Alabama. If FICO score is 580 or above, gross monthly income may meet the minimum standards of 3 times the total rent to qualify.

RENTAL HISTORY

Evictions filed within three (3) years of application date are automatically declined. Evictions filed between 3-7 years may be considered. Outstanding debt / judgements to any landlord that is reflected in applicant’s credit report may be declined without proof of satisfied judgement(s). A Non-Resident Guarantor must have no history of evictions, housing payment delinquencies or open / unsatisfied judgements.

BANKRUPTCY

Open bankruptcies will be cause for automatic denial unless a court letter of dismissal or discharge is provided. Dismissed or discharged bankruptcies that appear on the applicant’s credit report may be considered. Any rental debt that has been waived due to a dismissed or discharged bankruptcy may result in a declined application.

PET POLICY

The standard Headway lease prohibits pets. However, certain pets may be approved for certain properties after review, and with the addition of a Pet Addendum to the lease. For approved pets, Headway charges a non-refundable pet fee of $300 for each approved pet and a monthly rent of $25  for each approved pet. When pets are approved, there is a maximum limit of two (2) domestic animals per household. Acceptable pets include dogs, cats, small caged animals. Restricted pets include Pit Bull Terriers, Rottweilers and any mix containing one of these breeds. Livestock, farm animals and poisonous, dangerous or exotic animals are also prohibited. Verified service animals are permitted.

ADDITIONAL DISCLAIMERS

FAIR HOUSING POLICY

The agents of Headway Homes adhere to the Fair Housing Law (Title VIII) of the Civil Rights Action of 1968 as amended by the Housing and Community Development Action of 1974 and the Fair Housing Amendment of 1988 which stipulate that it is illegal to discriminate against any person in housing practices because of race, color, religion, sex, national origin, disability, familial status or any other class protected by law.

PRIVACY POLICY

All documents and information you submit as part of the application process is kept private and confidential. We take your privacy very seriously, and are happy to send our privacy policy accordingly.

FALSIFICATION OF DOCUMENTS

Any falsification in Applicant’s paperwork will result in the automatic denial of the application. In the event that an Applicant falsified his/her paperwork, the Landlord has the right to hold all application deposits and fees paid to apply toward liquidated damages. Falsification of application is also grounds to terminate the lease regardless of when the falsification is discovered.

USE OF INFORMATION

The information provided in the application as a result of the authorization given herein by the Applicant will not be sold or distributed to others. However, Landlord and Landlord Agents may use such information to decide whether to lease the home to an Applicant and for all other purposes relative to any future lease agreemeent between the parties including the enforcement thereof.

APPLICATION DOES NOT CREATE A LEASE

This application, even if accepted, shall under no circumstances be considered a lease agreement between Applicant and Landlord, or an offer to lease. No lease shall exist between Applicant and Landlord unless and until the parties enter into a formal Lease Agreement and Applicant pays all required fees, security deposits and rent.

CRIMINAL HISTORY

All residents over the age of 18 must consent to a criminal history verification using third party agency. Application(s) will be denied for any felony conviction within the last seven (10) years. Any felony conviction for any type of fraudulent activity, assault/battery charges, sexual crimes and/or violent crime(s) may be denied regardless of time. Misdemeanors may also be cause for denial based on the nature of the offenses.

† Certain municipalities and local jurisdictions require a landlord to provide criminal background reports for all rental occupants, including those under age 18. In those areas, Headway Homes will comply with local regulations and requires all occupants to consent to a criminal history examination.