FAQ Handbook

It's up to you and your real estate agent to find a home that matches Trio's qualifications and is at or below your approved monthly payment and home price. Any qualify single family home, townhome or condominium (without rental restrictions) built or substantially remodeled in the last 10 years in a Trio approved market area should qualify. You can also let us know if you are interested in new construction. In many markets we may have specials or pre-priced homes with certain negotiated discounts (we call these TrioReady).

The following metro areas are eligible for Trio financing in the State of California:
San Diego, Riverside, San Bernardino, East Los Angeles County, Fresno, Santa Barbara, Oxnard / Ventura, Stockton, East San Francisco (East Bay), Sacremento.

Ineligible:
Areas not within 50 miles of an eligible market identified above.

San Francisco and Los Angles are Ineligible:
The downtown areas of San Francisco and Los Angeles are ineligible due to the concentration of housing stock and the challenges in servicing these markets affordably.

The following metro areas are eligible for Trio financing in the state of Georgia:
Atlanta, Savana, Augusta, Athens, Macon, Columbus, Rome, Alpharetta.

Ineligible:
Areas not within 50 miles of an eligible market identified above.

Coastal Georgia areas that are Ineligible:
Coastal areas of Georgia are ineligible where flood or hurricane insurance is not required for mortgage financing.

The following metro areas are eligible for Trio financing in the state of Texas:
Dallas, Fort Worth, Austin, El Paso, San Antonio.

Ineligible:
Areas not within 50 miles of an eligible market identified above.

Houston is Ineligible:
Trio is not eligible in Houston TX due to the significant and unmeasurable impacts to the housing stock due to the hurricane in Houston TX. Shortly after the hurricane, Trio approached the State of Texas housing finance commission and offered to partner with its program to assist potential or existing homeowners with alternative financing. However, the State did not elect to engage Trio's services.

Trio and its government housing agency partners (when using FHA mortgages) are the buyers and hold title to the home while under lease. You retain the option to purchase the home at the stated purchase option price in your financing agreement with Trio. You do not receive any ownership rights in the property until you qualify to purchase and complete the purchase process as outlined in your lease. Trio's financing agreements are residential leases that contain an option to purchase for its customers.

Three non-refundable financing costs are charged by Trio:

Trio's goal is to establish an option price for its customers at no more than the option fee above the current market value/appraised value. To do so, the final home price at closing (including closing costs) should be equal or less than appraised value at closing. To make this goal a reality, Trio mandates a minimum seller paid concession for closings costs of 3% of the purchase price.

The home negotiation is up to you and your agent. Trio suggests negotiating a 3% sales price concession or discount to cover closing costs (home price less 3%). Negotiating an offer at a price lower than list price is standard in the industry, as is including some or all of a buyer's closing costs. If the seller refuses, Trio will still finance the home, but you will have to pay more out of pocket to move-in. Alternatively your agent can contribute a portion of their commission to make up the difference.

Trio's minimum concession is 2.5% of the home price. Anything less than 2.5% will require more cash out of your pocket for you to move in. Any concessions more than 2.5% result in both a lower option price and lower monthly payment.

The Trio OwnOption Mortgage that is arranged for your Trio financed home is created at the beginning of the lease, typically just before you move in. The interest rate is fixed at that time. All mortgages used by Trio have 30 year terms and are assumable by you when you are qualified and ready to purchase the home from Trio. Currently all Ownoption Mortgages are FHA loans, and any FHA loan rules and regulations in place at the time you are ready to purchase will apply. If you do not qualify for the FHA loan, or prefer to use another loan, you are free to do so. Using your OwnOption Mortgage is not guaranteed by Trio. You must qualify as outlined by the lender at the time of purchase to assume the OwnOption Mortgage.

Rental restrictions: Some developments, especially condos, may consider Trio a "rental" program and have restrictions. Some HOAs will allow exceptions based on our home being lease-occupied. You will need to check with the specific property for regulations.

Home condition: If the home you select is not new, it must be inspected by Trio's preferred partner. If the results of the inspection are not satisfactory to Trio, Trio may deny the financing and you will have to select another home. Trio only finances homes in 'like new' condition so that maintenance during your Trio lease is minimized. This allows you to focus on getting ready to purchase, rather than being burdened with repairs or renovations to your home.

A home or condo not FHA eligible: If the home or condo is located in a development that requires FHA approval, but does not have approval from FHA for financing, Trio will deny the financing and you will have to select another home.

Location of the selected home: If your selected home is outside a 30 to 50 mile radius from a major metropolitan area (city), it may not be eligible. Trio requires the home to be within its partnered maintenance provider service area. If you are uncertain, contact info@thinktrio.com.

For a home to qualify for Trio that is older than 10 years, it must have a clean inspection and be substantially renovated. To meet Trio's definition of 'substantial renovation', the home must meet the following:

Major systems and roof replaced, including plumbing, HVAC, electrical, roof, all redone with permit. Surface remodel does not count as "substantial renovation." Customers should strongly consider this policy prior to paying for inspections, as the house will be denied if it does not meet our criteria.

Your real estate transaction will begin just as it would if you had traditional financing-you will have a pre-approval letter, work with an agent to find a qualifying house, make an offer, order inspection and pay any required earnest money deposits. Once a purchase and sale agreement has been made and Trio has approved the home, the buyer and seller will "assign" the purchase to Trio, and from that point forward Trio will be considered the buyer in the transaction.

Our cap on options is the builder 'spec' level of finish. Typically, the builder will require any upgrades above 'spec' level to be paid in cash prior to construction. You can select more options and pay for them as a part of your up-front costs, but just be aware that if you don't purchase the home during your lease with Trio, these costs will not be repaid.

You can make an offer with any builder, however be aware that some builders consider Trio contracts to fall under "rentals" and have specific rules that may prohibit accepting a Trio offer. We have corporate relationships with certain homebuilders such as Meritage Homes, Pulte Group and KB Homes. These builders are familiar with our process and pricing requirements.

Your first month's lease payment isn't due until 5 days prior to move-in. That's after the home is completed and Trio has closed on financing it with the builder. The lease is typically signed when pricing is confirmed by the builder and before construction starts. The signed lease is contingent upon the builder delivering the home as priced and for inspection prior to move-in. Should the builder not deliver, another home may be selected or the parties may void the lease. Up-front fees are due upon lease signing.