ONCE all documents and application are submitted, we usually approve in 3-5 business days.
Most single family, site built, homes will qualify. They should be in Texas cities such as San Antonio, Austin, Dallas/Fort Worth, and Houston where it's easier to determine value. Smaller cities in Texas like Corpus Christi, Laredo, El Paso, etc will be considered on a case by case basis. We prefer to stay away for over rural areas where values may be hard to determine.
The actual home must be a "single family, site built" home. That means no mobile/manufactured home or multifamily home (duplex, triplex, quadplex, etc). Also, no vacant land or agricultural ranches.
Most deals can be done with as little as 16%-21% TOTAL CASH TO CLOSE. This covers your downpayment (min 10%-15%), closing costs, and all costs associated with completing your purchase.
Of course! We understand bad things happen to good people. For that reason, your credit score is NOT the determining factor. We look primarily at how much money you are willing to put towards the purchase price of your home, your current history of making on time payments, and your ability to pay the home every month..
You bet! We love self employed individuals because they boost the local economy and we believe they deserve the BEST they can afford. We recognize many self employed individuals are smart and take every advantage of many available tax breaks to infuse working capital into their business. As a result, it might seem they are "poor on paper" (tax returns). We can take income based upon last 6 months of bank statements to determine your real world ability to make payments.
Yup! If you have no SSN, but have an ITIN, we can usually approve you too.
A lot less than bank rates were in 1981! But in all due seriousness, each case is different. Our current interest rates have been in the range of 10%-12%. It's very probable yours will be too. By the way, if you don't know what bank rates were at in 1981, google it (or read the next questions). Blow your mind!
Interest rates are a measure of risk. The higher the risk, they higher the rate. After the 2008 recession many banks were unwilling to take much risks and would only lend to top notch "safe borrowers". As a result, interest rates are historically low - currently in the 4.5%-6.5% range.
Our typical buyers are such high risk that banks won't even loan to them, regardless of the interest rate they could charge. However, I always like to ask, "High, compared to what?". Compared to current bank rates available to well qualified borrowers, yes, ours are higher. Compared to bank rates in the early 1980's, ours are lower. Don't believe me? Read this article. In the early 1980's bank interest rates reached 18%.
Don't let comparatively "high" interest rates stop you from becoming a homeowner now and realizing the American Dream! That would be comparable to finding gold, but deciding to pass because the cost of the shovel "was too high".
The answer is "it depends". The opportunity of owning a home requires a significant upfront cash investment. Generally speaking, if you plan on living in the home for 3 years or less, you might be better off renting. But if you believe you are likely to be in the home for 5 or more years, you may probably be better off buying now. Why? Continue reading:
TAX ADVANTAGES: During the first 5 years, most of your monthly payment will be interest, which you can deduct from your taxes (consult a CPA, not legal advice). Can't do that with rent.
APPRECIATION: Homes in San Antonio are currently appreciating at a rate of 5.4% (click here to see report). That means two things: 1) your rent payment is likely to go up, while your mortgage payment will not, and 2) your home will most likely go up in value. This is called "equity". Your equity can easily offset any "high interest rate" you could be paying. Example, lets say you buy a $100K home and pay an interest rate of 10%. You will pay $10K in interest that year. However, if your home went up in value and you gained 5.4% equity, that means your home gained approximately $5,400 in value. Subtract $5,400 from $10,000 paid and your NET interest paid is about $4,600 or 4.6%. Pretty cool, huh? In five years, if appreciation continues as before, you equity will be about 30%. Refinancing could be easier or you could have a nice payday if you sell.
PRIDE OF OWNERSHIP AND STABILITY: What is the price tag on the wonderful feeling of a home cooked meal in your own kitchen? The joy of seeing your children play in the backyard you built? The fulfillment of hanging your own pictures, painting your own wall the colors you want, or growing your own garden? Its hard to quantify, but pride of ownership has no price. No wonder its called the "American Dream". Being fully confident that you are giving your family stability has no price. Its YOUR home - its THEIR home!
In summary, we recommend you try every avenue to secure a bank loan. This probably IS the least expensive way to buy. BUT if you can't, don't let an apparently "high interest rate" stop you from realizing the "American Dream".
Click here for a Case Study on what the "Real Costs of Waiting and Renting" can be when evaluating a $200K home purchase. You may be surprised what the REAL NET numbers look like.
Of course! We believe in developing strong relationship with local real estate professionals. You are more than welcome to keep your current realtor if you love him/her.
Of course! We have strong ties with some of the market's top realtors and will be happy to make one available to you at NO ADDITIONAL CHARGE to you.
Although they don't have to be in excellent condition, the home should be in a condition in which a family could fall in love with and move in. If extensive repairs are needed, the home might not qualify.
Por supuesto! Con nosotros, estas entre amigos y se te trata como familia!
No. Balloons are stipulations in a mortgage that require the borrower to refinance by a certain date, sometimes in 3-7 years. We don't impose balloons in our mortgages because we believe in creating a fair deal for buyer and investors.
No. Prepayment penalties are charges or fees attached to paying off your balance. It's similar to owning someone $100, but having to pay a $5 fee for the privilege of paying them off. Like, really?! Anyways, we don't think they are fair. Anytime after we close, all you have to pay for is the Unpaid Principal Balance (UPB) which goes down every month. So if you wish to refinance or win the lottery and want to pay off your home, just give us a call and write us a check for whatever the then current unpaid balance is.
Yes. You've never heard of a business that buys and sells for the same price. The difference is called "profit". That said, we don't need 10%, 20% or 30% mark up like Wall-Mart or other businesses do. If you decide to move forward, you will agree to pay a small 5.5% markup. However, you will never pay more than 5.5% over the publicly advertised asking price. And, although we cannot guarantee it, many times this markup is absorbed by us negotiating a lower purchase price. Example: let's say a home is publicly advertised for $100K. You will agree to buy it from us for no more than $105,500. However, let's say we negotiate a purchase price of $94K. Your final purchase price will then be $99,170. In this case, you paid less than what the seller originally wanted.
Heck no. This is a TRUE owner finance transaction where the deed is put in your name from day one and you are the one and true owner on record. You will received a Warranty Deed with Vendor's Lien indicating a mortgage is owed and you will have full ownership rights of the home from day one.
Nope. PMI is a special type of insurance that benefits only the lender. It stands for "Private Mortgage Insurance". It's not home owner's insurance, or life insurance, or any other type of insurance you may be familiar with. Banks require you to pay for PMI any time you put less than 20% down, regardless of how amazing your credit might be. Why? Loans where the borrower puts less than 20% down are considered "high risk" (they don't have sufficient equity) and PMI guarantees they will get paid in the event of a foreclosure. That's another reason they can offer "low interest rates". You as be buyer is the one that has to pay it, and depending on many factors in can be as much as $100 (or more ) for every $100K you borrow. That means that on a $200K home loan, you could pay an additional $72K over the life of the loan for an insurance that only benefits the lender. WE DON'T MAKE YOU PAY PMI, potentially saving thousand of dollars every year.
CONGRATULATIONS on making the decision to start your owner finance home buying process! The 1st step to schedule a no obligation one on one FREE phone consultation with a Program Specialist. Click below to share some basic info about yourself and one will reach out immediately.