“Your Job Is Your Credit” - if you are employed we will give you many different ways to buy a home. If you're tired of hearing why it can't be done - let us know! We'll show you how many ways it CAN get done! Here are some examples....
The Owner Finance program is no more difficult to qualify for than a regular Lease. "Your Job Is Your Credit" with us!
The concept is simple, you make your monthly payments on time and each month we apply the amount over your payment to your down payment (if you got in with little or no Down Payment). At the end of one or two years you take that money and use it as a down payment on permanent financing. *
It’s easy. If you want lower monthly payments, put more money down (or contribute more towards your Down Payment Fund). There is no cost to convert to permanent financing at any time during the program period.
Down Payment Fund – is the amount over and above the regular payment that you contribute monthly (or more when you are able)! This money is for you when you are able to buy. Your Earnest Money deposit is also applied to the Down Payment Fund. The idea is, when you go to buy the home you have enough money to minimize your "out of pocket" expenses and get the loan with ease.
That's it! The payments are simple and once the Program period has expired you will have enough money saved for the Down Payment! You can then choose Conventional Financing (we may be able to help you qualify for an FHA or government-backed loan!) and lower your payment significantly.
Owner Financing - if you have some cash and can make monthly payments - you're good enough for us! "Your Job Is
Your Credit"! Good for people with less than perfect credit - PLUS you can qualify for a more expensive home since you are not paying higher "loan origination" fees! These fees can total as much as 4-6% of the cost of the home! That's $4,000 to $6,000 that is going to loan costs...not to paying for the house! Owner Financing generally closes quicker too with more of your money going toward paying the principle balance instead of paying for lenders’ fees! You may also get the interest, tax and appreciation benefits!
We can also offer 'Special Financing' on new homes too—from our select builders.
If you can come up with an acceptable down payment we will finance the home at a good interest rate, slightly higher than prime, depending on your situation. This option is available to all our tenants who are currently leasing our homes and pay their rent on time. Usually your closing costs are less with Owner Finance - which means you can SAVE THOUSANDS, have more money for a down payment, and qualify for a more expensive home! We can also roll over our Temporary Lease to Owner Financing IF you are not able to secure your own financing at the end of the option period AND you have made your payments as agreed. This protects your Down Payment Fund money! We believe if you can pay on time, we want to keep you and will do everything to make that possible! You are our biggest asset and we don't forget it!
***** EXAMPLE *****
Owner Financing –
$100,000 Sales Price Today
$ 5,000 5% Down Payment
$ 95,000 Amount We Will Finance (simple qualification process)
$ 1,000 24 Payments @ 8% Interest
Most people get permanent loan within 12-24 months as a refinance!
There's no other "hidden fees" associated with this type of purchase. It is easy to qualify for and takes a lot less time to get into the home! No complicated loan process.
Get a FRESHStart! Today!
This is absolutely the easiest way to get into a home! This method allows you time to overcome whatever deficiencies you might have had stopping you from getting good, inexpensive financing.
Qualifying for Owner Finance is no different than qualifying for a rental property, there are no banks involved.
Pick the amount of time you need, usually a year or two, to procure financing. You have no penalties for securing permanent financing sooner than the agreed period (some investors charge a hefty fee! So be careful!). You may always opt to extend the Agreement period, if you have paid on-time, so YOU DO NOT LOSE ANY MONEY ALREADY PAID IN!!
Also, when you make your payments on time this will show a perspective lender that you're serious about home ownership. It's that simple!
Here’s where Owner Finance "The easiest way to own a home!" can be most beneficial to you:
· You can show On-Time payments — no late payments (preferably for a year or two) and it will make it easy for you to get approved for permanent financing (whether it's a conventional lender, FHA, or the bank) regardless of difficulties in the past! We even help you get the loan by providing a reference for you and 'prove' that you paid on time!
· Track record of payments — while you have been paying on the home you have established a good track record of payments. Eventually, that record of good payments will be used by your lender to determine qualification of a permanent loan. The Seller is usually the one who verifies your payment record. The key here is…pay on time and you may be able to walk away with the loan!
· You can prove the funds are available for a down payment — because you have been putting money aside every month in the Down Payment Fund.
· If you are self-employed — you will be able to prove sufficient income from self-employment to get a new mortgage loan. There are fewer questions and the need for mountains of tax returns (where you offset gains with losses), pay stubs, and banks statements become unnecessary because you are obviously ABLE to pay and have been doing so. Your track record is the proof.
· Your monthly debt (on credit cards, child support, student loans) is in balance with your monthly income — your combined debt (including mortgage payment) cannot exceed roughly 42% of your gross income. We will not encourage you to exceed this amount but we may be able to work with you one-on-one to get you in under that limit!!
· Since you obtained an interest in the home for a period of one to two years some lenders will consider your position "seasoned" — and will treat making you a new loan as a "refinance" as opposed to a purchase. This can save you thousands in fees and finance charges.
· Increase in value — in an active market such as the one we have now it's common for home values to increase rapidly. Not only do you get equity build-up, you may also be able to use that equity to refinance your loan. In some cases, you may even get money back. That money can also be used to pay off debts, credit cards, buy new furniture or finance a home improvement!
· Tax deductions — while some tax deductions may be available your best bet is to establish a track record of good solid payments and then when you have permanent financing look into additional tax deductions that may be due to you.
· Purchase price — this is the price you agree to pay for the home. This price must be agreed to up front. If the price isn’t fixed in the beginning, the market values will drive up the cost of a home and you may end up paying a considerable amount more for the home.
· Down Payment Fund — it can be as little as a typical rental deposit or it could be considerably more, depending on your situation. It is a good idea to put as much into the Down Payment Fund as possible thereby reducing your monthly contributions and increasing the amount of money available for a down payment.
· Right to Extend Agreement — in case you are unable to produce a loan by the end of the expiration of the Agreement period, you will need to extend the Agreement. We allow for the right to extend the Agreement so your valuable monies are not forfeited.
· Financing — you will want to get financing on or before the end of the Agreement period. So if you are not able to find financing but have paid on time - we may be able to provide an extension for you.
*** NOT ALL Owner Finance Agreements ARE THE SAME!! Remember the Agreement is only as good as the people who participate in it. Choose well or you could get burned! There are many ways this Agreement can be structured!
*** Be cautious when using this little bit of knowledge elsewhere - their product may not be the same quality AND OFFER THE SAME OPTIONS OR PROTECTIONS! ***
How Much Does Bad Credit REALLY Cost?
Bad Credit for financing an auto can really hurt, but the pain is nothing compared to the cost of Bad Credit when you purchase a home. A home can cost many times the purchase price in interest payments. When you buy a home with BAD CREDIT it can cost you much more (home cost = $100,000):
|
Credit Rating
|
Interest Rate
|
Payment (P + I only)
|
True Cost of BAD CREDIT
|
|
Excellent
|
6
|
$599.55
|
$0.0
|
|
Good
|
9
|
$804.62
|
$73,825.00
|
|
Bad
|
12
|
$1,028.61
|
$154,461.60
|
What difference does it make if I can get the loan? Sometimes, not getting the loan can be a blessing....there is a better way! You shop for a bargain at the grocery store so why pay more when it comes to a mortgage?
Why pay thousands more just because you get approved for the loan? If a conventional lender is able to get you approved, even though they give you crummy rates, then we may be able to do better by you. Just look at the numbers above. By cleaning up the credit blemishes that kept you from getting preferred rates you are able to have more credit - credit card offers, auto & bank loans, etc. - your quality of life improves AND you are still in the home of your dreams!
A Look At Credit
The next thing to consider is credit. It’s always best to get pre-approved! You should know what condition your credit is in BEFORE looking for a home. You could waste a lot of time and money if you don’t know what others are looking at in advance. Don't be surprised - it's better to be prepared so pull the credit bureau yourself and save time and money!
Some folks know their credit is not in the best condition. Take heart! There are ways to improve your score AND STILL LIVE IN THE HOME YOU WANT! This will have to be outside the “normal” financing channels for a while. We offer Owner Financing - "The easiest way to own a home!" There are several companies that offer ways to repair your credit. If you select a program for credit repair and then choose a home with Owner Financing that is one of the best ways to get back on top with good, established credit! This company offers our website members a discount, so make sure you mention you saw them here!
* The money is non-transferable and cannot be used to purchase someone else's home but we may offer you the option to purchase another Home Sweet Home, LLC property.
** We provide no warranty, expressed or implied, as to how a person may use the knowledge contained herein. Further, Home Sweet Home, LLC or any affiliates or associated companies will not be held responsible for any transaction a person having read our materials may be involved in or are contemplating involvement in. All our agreements are proprietary and contain protections to the buyer and seller and are for the exclusive use of Home Sweet Home, LLC and/or their affiliates.