Finance Programs

Rent To Own Program

With 3-5% down as an Option-to-Buy Fee you can qualify for our "Rent To Own" Program giving you time to improve your credit and build up your necessary down payment. You can earn a fixed monthly credit toward your future down payment. Once your credit has been improved or you have accumulated enough down payment you can qualify for a traditional low rate bank loan or you may choose to convert to our easy qualifying "Seller Financing" Homeownership Program. This program is perfect for those with credit issues or those who haven't saved enough down payment or just want to "test-out" the neighborhood, the schools or the house.

Seller Financing Program

Requires no bank financing or bank qualifying. You can increase your take home pay. You get to deduct interest payments and property taxes from your income taxes.  This lowers your income taxes and allows you to increase your deductions. Requires 10% of the purchase price as down payment. You can choose to pay more and that will lower your monthly house payment. You can receive all the benefits of homeownership NOW without the hassle of bank financing.

 Note: The above programs are not available on all of the homes we sell. Please contact us to discuss a particular home and your individual situation to find out what may be available.

If you have good credit we have relationships with many mortgage brokers and lenders that we can refer you to. In today's market it is expected that you will need money down, documentable income, and stable employment to qualify for these types of programs, however you can look forward to historically low interest rates and great terms. Our referral lenders have proven to us that they will treat our clients with the same care and respect that we provide.
 

How Much Home can You Qualify For?

Income. Debt. Down Payment. Closing Costs. Two Years Income Tax Returns. Assets. Liabilities. IRAs. You want WHAT? Just what can I afford?

Buying a home in today's marketplace is a bit intimidating. And your new home purchase is likely to be one of the most important decisions you've ever had to make. Usually it's one of the single most valuable assets you'll own.

Where to Start

Before you invest hundreds of hours searching--and to avoid any heartbreak if you find yourself unable to qualify for your dream home--sit down with a lender. Your lender can perform a simple verbal prequalfication in about twenty minutes and a full-fledged prequalfication in about 5 days.

Pre-qualification not only allows you to focus your search in the correct price range, saving a lot of wasted time and frustration, but it can also give you an edge when competing with other offers on a home that you find. If a seller is deciding between two offers: yours who has been qualified and another unqualified offer, they are much more likely to pick yours. Pre-qualification will also give you leverage when negotiating with a seller in a non-competitive atmosphere; it essentially makes you a cash buyer.

The amount of home that you qualify for will be determined by three key factors: your down payment, your ability to qualify for a mortgage, and closing costs.
 

The Down Payment

Whereas a current homeowner can rely on equity from their home sale, a first time homebuyer is limited to the money they can save. The days of having to put 20 percent down on a home are in the past, although putting a large amount of money down definitely makes it easier to qualify for a mortgage and to get the lowest interest rates available. With the various programs that are available today, you can put as little as 3.5 percent down on a home.
 

Qualifying for the Mortgage

There are two basic guidelines that lenders use to determine what size mortgage you are eligible for:

1. Your monthly mortgage payment of principal, interest, taxes and insurance (PITI) should not exceed 25 to 28% of your monthly gross income.
   
    
2. Your monthly housing cost (PITI) plus other long-term debt should not exceed 33 to 38% of your monthly gross income.

Specifically, most lenders will consider 4 key factors to determine your ability to qualify for a home loan:

Income  This first element can include not only your gross monthly income and secondary income (commissions, bonuses) but also your history of employment, stability of income, education, even potential for future earnings.

Credit History  This encompasses your history of debt repayment, total outstanding debt, highest balance, and your highest monthly debt balance.

Assets  Your assets consist of cash on hand, savings and checking accounts, CDs, stocks, bonds, or any other type of liquid asset.

Property The home you are planning to purchase will be appraised to determine the market value. The estimated value must be sufficient to secure the loan. Lenders will loan you no more than a certain percentage (usually 95%) of this value.

Closing Costs
Keep in mind that in addition to your down payment, you will also be responsible for paying fees for the loan and closing costs. These will be required at the time of closing unless you qualify and choose to have these included in your financing.

• Closing Costs generally will range between 2 percent and 6 percent of the mortgage loan, depending on the loan and lender. You will be provided with a "Good Faith Estimate" of closing costs so you can know what to expect.
  
   
• "Points", which are one-time charges equal to one percent of your loan amount, may be required by your lender at closing.
  
   
• Your closing agent will charge a fee at the close of the sale.

We sincerely hope this information will help you gain a better understanding of the mortgage process. If we may be of any further service, please contact our office. We would consider it a privilege to be of service to you! If you would like a free consultation call our office.