Frequently Asked Questions
Frequently Asked Questions
Q. You state that your program is No Credit Qualifying. Why do I have to make an application?
A. While our rent to own / lease purchase program is no credit qualifying every applicant must qualify for our program. We are not in the eviction business and don’t want to be. It doesn’t do us or you any good to take up-front Option money and then put you in a home that you can’t afford or that you won’t be able to qualify for prior to expiration of the Option.
Q. What are you looking for to qualify for your program?
A. We look at a number of things. First and foremost, we are looking for people who truly want to become homeowners. There are numerous Lease Option programs out there that simply want to take your option money, rent to you for a year and then for you to move out so that they can repeat the process. This isn’t us. We want to help you and your family achieve financial success and become homeowners! This is why we require that you sign up for a credit repair program. Secondly, we are looking for your ability to pay for the home. You must be able to verify that you can afford the payment and have steady income. For more information on qualifications, please click here: http://www.financethedream.com/enrollnow
Q. Why do you pull our credit?
A. There are two reasons. First, we need to make sure that we aren’t getting you in over your head. We want to build solid long term relationships with you. The last thing we want is for you to be overextended with other debt and not be able to afford your home. The second is that because our lease option program is truly designed to help you become a homeowner, we need to understand what it is going to take to make that happen.
Q. I make a good income, but can’t verify it in traditional ways. Does this mean that I can’t qualify for your program?
A. No, not at all. We can look at non-traditional sources of verification. The key thing that must be considered is that because Stated Income Mortgages are a thing of the past, we need to ensure that steps are taken so that you can purchase the home in two years.
Q. What makes your program better than other programs out there?
A. There are certainly other reputable Lease Option programs out there, but we think that ours has something special. Our approach is unique in that we are seeking to build a long term relationship with you. First and foremost, the terms of the lease option are set up to actually put you in position to buy the home — this is important. Many lease option programs are set up so that at the end of the term there is no way you could ever buy the home unless you paid for it in cash and for a price significantly above true fair market value.
Q. How can the terms of a lease option affect my ability to buy?
A. The terms of any lease option are critical to your success! Unfortunately, there are many programs out there whose sole purpose is to rent the home to you for a year, collect upfront option money and then for you to be forced to move out in a year. Why? So that they can collect the option money again from someone else! How do they do this? First, they set the option price far above what they estimate that the Fair Market Value of the home will be. This ensures that even if your credit is perfect, no bank would finance the home for you because the home isn’t worth what you’d be paying for it. Secondly, they offer little or limited rent credit and do nothing to help you save up for the down payment. We offer a generous rent credit and the ability to take advantage of money making opportunities with our company. Lastly, they do not require you to work on repairing your credit because quite simply they don’t want you to!
Q. Why do you do all this?
A. We’ve been there. We know that life throws you curve balls and sometimes your credit gets damaged and makes things difficult. When we say that we are looking for long term relationships, we mean it. Our long term goal is to see you and your family successful and for you to be so happy with what we have done that you are compelled to refer your family and friends.
Q. Why do you require an application prior to viewing the home?
A. A good Real Estate Agent will always require a client to get pre-approved with a mortgage company prior to showing them any home. The reason for this is to ensure that no ones time is wasted. It is heartbreaking for you and frustrating for the person who takes the time and to show you the home. (Usually a Real Estate agent) We do ask that you drive by the home first and make sure that you like the area and neighborhood.
Q. What is your application fee?
A. Our application fee is currently $37. This covers the hard cost of credit reports as well as the cost of an employee to process your application.
Q. What exactly is a lease option? What is the difference between rent to own, lease option and a lease purchase agreement?
A. A lease option is a contract where you lease a property for a specific period and have the option to purchase the property at any time during this period for a pre-determined price. A portion of each month’s rent goes towards the purchase price of the home. At the end of the term, you have the right to buy the home but you are not required to do so. A rent to own contract works in the same way. A lease purchase contract typically requires that you purchase the home at the end of the lease term. We do not usually offer lease purchase homes, but you may see the term used interchangeably on our website because many people understand the lease to purchase concept but not lease options. The challenge we find with lease to purchase homes is that they do not provide you the option as to whether or now you wish to purchase the home. If this is the way you want to structure the deal, it is more beneficial for you to do owner financing because of the potential tax benefits.
Q. What is the term of your lease?
A. Our typical lease term is 24 months. We do this because in our experience, it can take a minimum of two years for you to repair your credit to the point that you would be able to qualify for traditional financing. Of course, you are free to exercise your option at any time during the 24 month period.
Q. What down payment/deposit is typically required?
A. Based on your situation, we require between 2-3% of the value of the home in non-refundable option money.
Q. I am currently looking to rebuild my credit and find a home. But I do not have the money for a down payment at this time. How can this program still help me?
A. There are two ways that our program can help you. If you have some cash saved up and are ready to move, you can enroll in our program and see if you qualify for our down payment assistance program. This can help you get into a home for as little as the first months lease payment + $500. (On homes in inventory)
If you do not qualify for down payment assistance (or aren’t ready to move yet), but are still serious about owning a home, then we highly recommend you going ahead and choosing the credit repair program that best suits your needs.
Once you are enrolled, you can begin the process of re-building your credit and put yourself in the best possible position to own a home!
Q. I really like your program, but you don’t have a home in inventory that meets my needs. Can you still help me?
A. Yes! You can enroll in our custom HomeFinder program. With this program we can find you a home anywhere in the U.S.!
Q. Can you tell me more about your HomeFinder process?
A.
- Complete the Enrollment Application
- Once the Enrollment Application is completed, sign up for the Platinum level custom HomeFinder Service
- Once you have signed up, it will redirect you to the HomeFinder Form. Fill it out and be as specific as possible about what you want and don’t want. I need to know deal makers and deal breakers
- Email us the HomeFinder Form. Upon receipt, we I will begin searching for properties that match your description, get them under contract and help you get into them with a minimum of hassle
Q. I need a cheaper payment than any of the homes you have in inventory. Can you still help?
A. Yes! We acquire inventory based on the needs of a majority of our clientele. This doesn’t mean that we have a certain minimum payment that we can help you with.
Just like anyone else, you would need to enroll in our HomeFinder program so that we can find you a home that is specific to your needs.
Q. I have found my dream home, but it is listed with a Realtor. Can you still help?
A. Yes, we can, provided that you sign up for the highest level of service via our HomeFinder program.
We can’t guarantee that we can get a specific home under contract for you. Even so, we will NOT contact a Realtor without a strong commitment from your.
There are several reasons for this.
Based on our experience, it will take us 5x the effort to negotiate a deal with a Realtor than if we go directly to the seller. Realtors don’t always understand our program and it is typically difficult for them to explain it to their client. Most often, they want to maintain control of the situation, so the seller never truly understands our program.
While we have done some great deals with AMAZING Realtors, unfortunately, there are many out there that are only interested in their commission. As such, there is little motivation for them to facilitate the leasing of a property when they can make between 3% and 7% on a sale. (Which they can still do with us – it just won’t be for 24 months.)
Q. I’ve seen a home listed with an agent. I want to enroll in your HomeFinder program. Should I contact the agent directly?
A. Let us help you here so you don’t unknowingly shoot yourself in the foot. If you want us to help you, under NO circumstances do you contact a Realtor or seller directly on any property that you may want.
Here’s why:
When you contact a Realtor or seller directly, they think that you are inquiring to purchase the property with cash or a mortgage. When we then contact them for an owner finance/lease purchase deal and they find out you are the buyer, they feel deceived and it can blow the deal up.
It is best to let us go in the honesty up front and explain the entire deal to them. That way, they immediately have all of the information they need to determine if our program is a good fit.
Q. What does Rent Credit Mean?
A. The rent credit is the amount of your rent that goes towards the purchase price of your home. Every situation is unique, but typically we will offer 80-100% of your first year’s rent in a rent credit. This will hopefully (no one can predict mortgage guidelines 24 months from now) allow you to purchase the home without additional down payment or closing costs out of your pocket.
Q. What happens I don’t make my payment on the first of the month?
A. We have investors to answer to, and as such, it is imperative that you make your payment on time, without exception. You are incentivized to do this via the rent credit that you receive only if the payment is made on the first of the month. There is no grace period and if they payment is made on the second, you lose the entire rent credit for the month. You are literally throwing money away!
Q. Do You Require that I Enroll in Credit Repair?
A. Most owner finance transactions never consummate and the tenant/buyers end up spending inordinate amounts of money for down payments or option fees, improvements to the property, etc., only to lose all of their money because they did not do what was necessary to qualify for a mortgage. So, we generally require it for the following reasons:
- We genuinely care whether or not you actually get to own the home
- It is a litmus test for the seriousness and commitment of someone as to their level of sincerity about straightening out their financial life
- It is a selling point with sellers that enables us to get people with extremely derogatory credit into a home with ease when they otherwise wouldn’t be able to
- Q. I am already in Credit Repair. Do I need to enroll again?
Q. Do You Take Section 8?A. Section 8 is ok provided that once you take occupancy you would be working towards qualifying for Section 8’s mortgage program where my understanding is they will provide financing and then subsidize the mortgage payment in the same way they are currently subsidizing your rent payment. You would need to speak to your representative there to get all of the details.
Popularity: 3% [?]
