The Program
Application Declined!
We have been so conditioned to believe that there is only one way to own our home; either financing through a bank or credit union! While this is the most obvious way that home ownership occurs, financial institutions have a very strict guidelines that they use to govern who is granted financing and those who is not.
The problem that arises of course is, what happens if you have been declined financing? Well in the past- NOTHING! You were out of luck and you would end up paying high interest rate and fee’s to hard money lenders and the whole cycle repeats again after one year when the loan matures. Home ownership was not in your destiny. It was a pipe dream that “other” people were fortunate enough to participate in-but NOT you or your family.
If you are with me so far, then you might be one of those people who have been denied access to the funds you need to purchase your dream home.
Bridging that Gap…
It is important to realize that banks and traditional lenders are not the enemy, but when economic conditions start tightening as they are now, they are declining more files than ever before. If you were an investor with a major financial institution, you would want to protect your investment by minimizing your risk as well.
That said, they continue to use the same time tested approach to see who qualifies and who doesn’t. They simply plug in a bunch of your financial numbers, examine your credit bureau and then based on the financial profile created, you are either “Approved” or “Declined”.
This, of course, is a glorious moment for those approved; catastrophic for those declined. And the harsh reality is banks and other lending institutions are not in the business of moving those who are declined to the list of those who are approved.
BUT fortunately, this is where Home Owner Soon comes in.
We bridge the gap between that “NO!” you first receive and the future “YES” you will achieve.
From Wikipedia, the free encyclopedia
Rent to own is a real estate term relating to a real estate agreement which is comprised of a rental lease and a purchase agreement where the tenant has the option to purchase the property at a fixed price at a specified point of time in the future. It is also known as lease to purchase option, lease option, owner financing or lease-to-own.
The lease resembles that of a typical rental lease where the land owner, the lessor, allows the other party, the lessee, to occupy the property in return for a monthly payment. A portion of the lease is termed monthly option credit that converts to down payment at the end of the term if and only if the lessee makes the payment on schedule without any defaults. The option to purchase the property usually states the price at which the property is to be bought and the date at which the tenant is able to exercise the option. A security deposit is collected upfront and held as collateral without interest until the term is complete, after it would be converted to down payment.
If the program is executed properly, it becomes an incredibly unique opportunity that only a few people have been exposed to across Canada. The best part however, is that this program literally transforms the financial destiny of those who get to participate in our program.
Click here to read our testimonials.
So what’s the difference between Home Owner Soon and other’s?
So lets get to work here and demystify the program so by the time you read through this website, you will be well equipped to compare other rent to own programs with ours and if this is the best program for you.
There seems to be a whole slew of new rent to own companies sprouting up every month, most of these players are small local players, landlords, and property managers looking to fill their home with a tenant with the promise of home ownership. Most smaller rent to own companies only ask for as little as 2 or 3% down making this attractive and easy for new people to apply. If you are following the economic news in the papers and what is being said in Ottawa, our lending institutions have all tighten guidelines by raising the bar on beacon score requirements and requiring more down payment in order to qualify. This means if you are thinking 5% down will get you approved, don’t hold your breath, you are praying for a miracle. When you last looked at your bureau, what did the credit score say? Many people with bruised credit never improve unless they receive professional help because they lack the financial discipline and it is not their fault, our education system do not teach families about money and credit. Won’t you think the bank will ask for 10 to 15% instead given the pressures of today’s economy?
Next is the property issue, most other rent to own companies allow you to pick homes that they currently own or has made arrangements with the current owner to lease it out to you. Problem is you didn’t pick it, does you family love it, is the location right for you, why are you settling? We found many of these homes are not in the best of shape since they were treated as rentals and not owner occupied homes. We have the popular Buyer Selection program that allows you to pick your own home from anywhere on the MLS as long as it is within our property guidelines provided to you by your mortgage agent. We also have selected homes you could pick from on a first come first serve basis.
The biggest difference between our program and others is the credit rebuilding offer. Most other services simply pass you a credit card application, ask you to apply and that’s it. If I was investing into myself, I would like to see a more robust program that can help me. Time to get REAL!
We have been contacted by many mortgage agents and Realtors saying they have a client that is currently in a rent to own deal and they hate the house because it is in bad shape, or they recently been declined at the bank and now they are being forced to move. We hear stories like this all the time that leaves us shaking our head, I last heard that 65% of all rent to own deals fall apart before the end of the term. Will you be one of them?
Summary of key importance…
- Highest form of down payment of 5% to start, forms the base of your future down payment of 10% and up.
- Complete financial underwriting, all files are underwritten to bank lending guidelines as well as CMHC insurance
- Credit rebuilding, get that credit score back to “A” status
- Buyer selection that allows you to pick your own home
Who is our client…
So who do we work with? We are NOT credit driven and our clients generally fall into at least one of the categories below. They…
- Low or non existent credit score
- Stable salary income of $45,000 or greater per household
- Business for self, contractor, commissioned
- Clients in collections or with judgments
- Not enough down payment now to satisfy lender requirement
- Going into or on consumer proposal
- Declared bankruptcy and can be or going to be discharged
What we REALLY do…
We are not a lender or a mortgage provider, you can say we are match makers where we have a network of real estate investors throughout Canada who are willing to take title of your dream home you chose, qualify for financing with one of our approved mortgage agent, set up a lease and allow you to move on in. Once you are in, we start the process of rebuilding your credit (if required), the very reason why you were in this mess in the first place.
What the tenant/future home owner brings to the table…
At this point you are probably thinking this sounds a little too easy. Well the simple fact is, IT IS. If you fall into any of the areas described above then there is a strong possibility we can help. But there is a catch (yes there is always a catch)! We work directly only with mortgage agents and we require all tenants/future home owners to provide the following…
- a minimum down payment of at least 5% of the purchase price of the property in question (the higher the better of course because your lease rate drops) in a major city across Canada (except Quebec). We will require a higher deposit in more smaller or rural towns of up to 10%. For all refinance (saving a power of sale), 10% minimum equity is required.
- income documentation such as a current job letter, (2) pay stubs, 2009 T4, 2009 notice of assessment, confirmation of down payment with a bank account statement and anything else that might be requested on a checklist provided to your agent.
The GREAT NEWS however is the down payment is credited back to you as a deposit and will form the foundation of the down payment for your property.
- the financial security needed to cover the monthly rent payments+ the monthly option lease credits
Monthly Option Credits are typically 20% of your rent payment. The monthly credits accumulate over the entire lease term and are used as part of the final down payment which will be credited towards the purchase price of your dream home. And when it is time to exercise the option purchase, you simply make one extra payment to our investor to cover all expenses in getting out of ownership of this house.
What does this cost?
In fact our fee is quite affordable at $500 for what we do and provide and we only charge this activation fee when you are approved and ready to roll into our program. You do have 5 business deals to decide to cancel for a full refund and if we cannot transact, we also refund you the total balance. Only if you decide not to pursue is when this fee is not refundable. For families that currently own and require the re-finance buy back program, the activation fee is also charged and an additional $500 is requested at the singing of the offer, that we will require this amount which will be rolled into your final security deposit.
What happens if I default….
The deposit you provided in the beginning is documented on the lease option contract so the investor is accountable for the full amount. Just like a mortgage or car payments, if you stop paying the bank, the lender will come and take it away. This puts all parties in a difficult position since the investor would lose a great deal of money and their original intent was to help you. If you are participating for our Back fill program (existing inventory), the deposit is 100% fully refundable but the monthly credit is forfeited since you refused the option to purchase the house. For the buyer selection program, since we acquire the home specially for you, we would refund your deposit minus cost to unload this property to recover all mortgage discharge cost, agent commissions, Realtor fees, property management expense, legal fees and any other cost associated in liquidating the property. The option fee is also forfeited since the option is not exercised. We find both sides really lose out and we really emphasize that everyone thinks it through early in the game and make a strong commitment once you decide.
What happens once qualified…
Once you have been qualified into our program (click here to Apply Now) then the real fun begins. Based on the numbers provided, you then go out and find a home that works within your accepted price range.
This makes a ton of sense when you think about it. You get to choose the home you want in the area you want at a price you can afford. It doesn’t get any better than that.
Final Steps…
Once you finally find that home you want, there are only a few steps left in the process. These include…
- setting up a lease period which will allow you to secure traditional financing at the end of the lease term
- agreeing to a final purchase price of the home at the end of the lease (this is done before you even buy the home)
- finalizing both the lease option and monthly credit options
Benefits of this Program…
There are numerous benefits to our program.
- it’s easy to qualify! Your current credit score is not a factor in our decision
- your monthly payments and down payment are affordable
- your final purchase price is guaranteed in advance
- you start building equity IMMEDIATELY
- you are free to do any renovations you choose since this will be your home
- we offer financing for both new homes and existing homes for resale
Get Started Now…
So there you have it. That is our program in a nutshell. This really isn’t a very complicated process and as we stated earlier, we transform lives with our program.
So what is next? We work with exclusively with all licensed mortgage agent throughout Canada. If you do not have one, you can simply apply and all you need to do is click here to APPLY NOW! We will refer you a mortgage agent in your area to guide you through this process. This agent will be the smiling person guiding you into a bank lender once your term is complete, and if you made all your payments on time, you will now have the sufficient down payment to be a new homeowner.
Come Join Us
