Q. What is it that you actually do?
A. We buy houses and put people with good incomes but damaged credit in them – they then get their credit fixed and refinance and pay us off. They own the home. It becomes theirs.
Q. How does that benefit me?
A. Studies show that generational wealth for most people is from owning property. That means it is an asset you can pass on to whomever you choose. You get the appreciation as the value goes up. You get the tax write offs it offers. You can paint the walls any darn color you choose. You can have more space than renting and have the privacy you want.
A million different people have a million different benefits that they see.
Q. How do I qualify?
A. It is all based on how much you have to put down and your ability to make payments.
How much do you have to put down?
Q. How do you figure the payment?
A. It is figured by subtracting the down payment from the sale cost on a 30 year fixed note. Usually people refinance in a couple of years to a lower payment when their credit improves.
Q. How does it work?
A. Once qualified, we let you look at the homes that are available and update you when new ones come into inventory (usually weekly). If you decide to go forward with a home, we sell the property to you on owner financing with a down payment, or for an option fee on a Lease Option with monthly payments. You fix it up and remodel as you choose to, going as quickly or slowly as you want, doesn’t matter to us the speed. Then you could refinance paying off the option or the financing or maintain the existing payments. This way you don’t have to have $100,000 to $200,000 cash to buy a home, or have to rent for the rest of your life.
Q. What is another option?
A. With a 640 or better credit score you can do a zero down FHA loan and the payment would be less – that is a normal Bank Approval purchase process. We don’t do these. You have to talk to a mortgage broker for this option.
Q. What if I haven’t established credit?
A. Good news. You can now buy a house even if you haven’t established credit. All you have to do is provide 4 bills that have been paid on time for the last 12 months. They will verify the information. Acceptable bills are like
1) Utility bill
2) Cable bill
3) Car Insurance bill
4) Cell Phone bill
5) Gym Membership
The other requirements are just like our normal Lease Option or Owner Financing.
Fill out the application and let’s see if we can get you qualified.
Q. What is the first question I need to ask myself?
A. “Will I be buying by Bank Financing (traditional financing with good credit) or by Lease Option?”
Q. What is Dodd-Frank?
A. It is a series of laws that have changed how banks can lend money. It makes it much harder for people to qualify and to get a loan. You can read about it here: Dodd-Frank
Q. What kinds of houses do you have?
A. We focus on family homes that are 3 to 4 bedrooms and 2 to 3 baths in nice, safe family neighborhoods.
Q. What is the difference between a Lease/Option and Rent to Own?
A. In a Lease/Option you are not required to complete the purchase. In a Rent to Own, you generally have to complete the purchase. However, the two terms are used interchangeably by many people, so it is best to ask what the requirements are before you sign.
Q. Do you sell for cash?
A. No, our programs are specifically for people with damaged credit who went through a tough time but have now recovered and still can’t get a loan from a bank. It is also for self-employed business people, since they find it nearly impossible to meet bank requirements, but they still have a good income and pay their bills on time.
Q. What areas do you cover?
A. We cover all of Maricopa County AZ including Mesa, Phoenix, Tempe, Scottsdale, Chandler, Gilbert, Glendale, Peoria, Sun City, to name a few and Travis County TX, Williamson County TX, and a few other counties around Round Rock to Austin to San Antonio.
Q. Does it cost anything to qualify?
A. There is no cost to see if you qualify. If you are approved, we have a program that you can participate in that puts you ahead of the line with a down payment held in reserve, but there is no requirement to do so.
Q. Why do you need my approximate credit score if approval isn’t based on the score?
A. Our approvals are based on down payment and ability to pay. We have to comply with Dodd Frank which requires us to have a certain amount of documentation showing that you will be able to refinance sometime in the future if you choose to do so.
Q. Do I have to go to a bank?
A. No. Our approvals are based on down payment and ability to pay. We do not need any bank’s approval, thusly, we can decide in a day or two rather than the several weeks they take.
Q. What if I have a Bankruptcy or Foreclosure?
A. If either has been totally completed it is not an issue. However, if you are currently in bankruptcy, we have to wait until you are no longer in bankruptcy.
Q. Do I need a down payment?
A. Yes, a down payment is necessary since that along with the ability to pay are what the decisions are based on. The down payment can come from earned income, cash, 401(k), pension, IRA, tax return, family member, exchange of a property or other assets.
Q. How long does it take to figure out if I qualify?
A. Once we have your preliminary filled out form, it usually takes 24 hrs to 48 hrs for a Pre-Qualify. Approval is an additional 24 hrs to 48 hrs and requires a bit more information, but not much more. This is not your traditional process. It is very streamlined.
Q. How long does it take to be approved once I decide on a house?
A. It generally takes 24 to 48 hours once you have filled out the request located here: Approval Most people choose to be approved prior to deciding on a house so that they are not wasting time looking at houses they don’t qualify for. However, once you are Pre-Qualified, you have the ability to start looking. Keep in mind that those that are Approved are looking at the houses too, and they have priority over those who are only Pre-Qualified.
Q. How much income do I need?
A. Because of Dodd Frank, which regulates our financing to you, you can have a mortgage payment of approximately 33% to 40% of your gross monthly income (before taxes). That means that if you make $4,000 a month before taxes, your housing payments can be between $1300 a month and $1600 a month. This is a “rule of thumb” and there is room for flexibility. It is also modified by the amount of down payment you have. The more down payment, the smaller the mortgage payment. You will also enjoy the tax write offs from home ownership which means your actual monthly is less.
Q. Why don’t I just get a mortgage from the bank?
A. You can, if you wish. But, a mortgage from a bank is not useful in this process. The few people who are being approved by bank lenders are finding that it is tougher to close than they thought and even some when “approved” are finding the bank withdrawing the “approval” just before closing. This is very disruptive for all involved. But if you think the bank will approve you, go for it. You will want a real estate agent and start with the MLS at that point, since we do not accept bank mortgages.
Q. Do I need a real estate agent?
A. No, once you have decided on a property and are Approved, the “closing” is done with an attorney to make sure all paperwork is done correctly.