No Bank Qualifying:
We offer innovative solutions to your real estate needs. This process is actually very simple. Instead of going to the bank for financing, we may be able to offer you the financing. If you are wanting to purchase a home but are money and or credit challenged we may well be able to help you. We frequently have properties that we can place you in with negative items on your credit report, past foreclosures, short sales, bankruptcies, etc. As long as you are employed and have a sufficient income to be able to make the required payments we can usually place you in a home. Most do require some amount of money to move in however we do at times have properties that can be purchased with sweat equity being used in lieu of the required move in amount.
Rarely will you find a spotless credit record these days. Still, if you have cash in lieu of spotless credit, we may be able to work out a seller finance agreement on your property at a rate and payments suitable to a tight budget. During our interview with you we will discuss the following topics and determine if we will be able to place you in a suitable home for your needs and financial situation.
We will discuss:
- Your household income: Generally your income needs to be approximately 3 times the amount of your monthly payment.
- Verifying your income source: We will need a letter or similar documentation from your employers verifying your current income, length of employment, and likely hood of continued employment.
- Your debt ration: All monthly payments including the projected house payment can not exceed 43% of gross income.
- Down payment: The larger the down payment you can supply, the lower your monthly payment.
- Monthly Payment: This will depend on the amount you can put down down payment.
- Terms of the loan: Since these type of transactions normally carry higher interest rates than the normal marketplace we will be expecting the loan to be refinanced at some point in time to benefit you in getting a lower interest rate and thus a lower monthly payment.
- Credit repair and optimization: Even though loans such as these follow much looser guidelines it is to your advantage to have us assist you in correcting any credit issues you may have. In these cases we highly recommend, and at times require, you to participate in a credit repair program and or optimization service. We can offer some advice and can recommend several different companies providing these type of services.
The first method is by using a Land Contract, (aka Contract for Deed, Contract of Sale, or Installment sales contract). This option states that, in essence, the seller holds title to the property until you, the buyer, pay off the loan. (You normally pay the loan off in a series of regular payments, similar to a standard mortgage). After you pay off the entire loan, the seller would sign a Deed transferring title to you. This is somewhat similar to how you buy a car and have it financed with a bank, the bank holds the title to the car until the loan is paid off.
The second method is for the seller to take the place of the bank and simply finance the home for you. You, the buyer, sign both a promissory note (promising to repay the loan) and a Deed of Trust, the collateral for the promissory note. The seller of the property transfers the Deed to the property to you and when recorded you become the owner of record. Because you hold the deed, you can sell or refinance the house, while continuing to make the agreed-upon payments to the seller. Note: Seller financing is not available for all properties.
Rent2Own or Lease Options are also an option for credit challenged buyers but technically these type of transactions are not sales. Instead these type of transactions are a long term rental/lease agreement with the tenant paying money up front to have an option to purchase the property at some future date. For more detailed information on this method of purchase please visit our RENT2OWN page by clicking here http://www.e3enterprisesnv.com/rent2own-a-home/