First, we get to know your financial situation and then we seek to tailor the best lending solution to meet your needs. We work with any kind of credit—the good, the bad and the truly ugly! Below are some specific examples of three different financing options.
Handyman Special With Great Potential
1) WORK FOR EQUITY:
Some of our houses need work. We can provide financing for these homes for up to six months
while you do the work and build equity.
EXAMPLE of WORK FOR EQUITY:
$120,000 Purchase Price within six months
2,400: 2% Down payment
1,000 per month payments for six months
This is 120,000 @10% interest-only.
2) LEASE/OPTION:
Combines renting and buying in three basic agreements.
The lease: A rental agreement is signed between Stewardship Properties and the tenant/buyer. A portion of the monthly rent is credited back when the home is purchased. So, if, for instance the rent is 1,200 per month, $175 per month of that amount is returned to the buyer at closing.
The option: An option gives the tenant/buyer the right to purchase the property at an agreed upon price within an agreed upon time frame. Typically the option price is 1-2% of the purchase price. So if the price is 200,000 the option fee will be 2-4,000. The time to exercise the option is usually between 12-24 months. This should give the tenant/buyer adequate time to work with a lender to secure a loan in order to purchase the home. If the option is not exercised then the option fee and rent credit is forfeitted.
The purchase: This agreement secures the tenant/buyer with the price and terms so they are able to the purchase the home at any time within the duration of the option. An escrow company, such as 1st American Title, completes the paperwork and sale.
EXAMPLE of a LEASE/OPTION
Beautifully Remodeled Country Home
The Lease 975—First Month’s Rent(175 per month rent
credited back at purchase) +1,750—Option Fee (1% of the purchase price) $2,725—TOTAL MOVE-IN COST
Option Purchase Price $175,000 within Two Years
Credit Back at Purchase
If the purchase happens at 20 months, the buyer
receives the following amount at closing:
$5,250—TOTAL amount credited back to buyer at closing
This is 3% of 175,000—the amount required down for an FHA loan.
3) OWNER FINANCING: We can finance
the down payment or even the entire purchase
for 1-5 years with no bank qualifying until you
are able to secure a bank loan.
A) EXAMPLE of OWNER TERMS: We provide
100% of the loan with no bank qualifying.
$230,000 Purchase Price @ 8.5% int. for 1-3 years
$1,629 Monthly mortgage (not incl. taxes & ins.)
B) EXAMPLE of OWNER TERMS: We provide
a 10% down payment with bank qualifying.
$230,000 Purchase Price
5,000 Closing Cost (from buyer)
207,000 Bank loan @6.5% = $1,121 per month
23,000 2nd loan from us @ 10% for 3-5 years
= $192.00 per month
$1,313 Total monthly mortgage payment
These are just examples. If CREDIT is lacking,
we look to get CREATIVE and if MONEY is
lacking, we look to get… MORE of the same!
