The Program
GOT Declined!
We have been so conditioned to believe that there is only one way to finance own our home; your choice is between a bank, credit union or insurance company. And if your credit is bruised, you might need a private lender and pay outrageous fees and interest rate.
You do have options…
Bridging that Gap…
It is important to realize that 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 your financial numbers, examine your credit bureau and then based on the financial profile they 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 landowner, 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.
Is there a difference between Home Owner Soon and other programs?
So let’s get to work here and educate our self about the Canadian mortgage industry. Based on current bank guidelines, any application with collections, judgments and write are automatically declined. Low beacon score is another source of turndowns. If you have any of these issues, you will know exactly what I am saying.
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 working from home or any place with an Internet connection. Most rent/lease to own companies require as little as 2 or 3% down making it very attractive and easy for new people to apply with the promise of home ownership.
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. Bank want to see down payment close to 15% if you have previous credit issue’s.
More than 65% of all rent/lease to own deals end in disaster and they never make it to the end due to a number of issues. Most rent/lease to own providers put very little work into credit restoration or they leave it to fate. We prefer our unique PROSPER program, which is our in-house credit coach team that could work on each and every application that enrolls into our program. This team works on monthly budgeting and trade line rebuilding followed by solid mentoring.
Who is our client…
So whom do we work with? We are NOT credit driven and our clients generally fall into at least one of the categories below. They have either…
- Low or no credit score
- Business for self and can’t show income
- Collections, judgments or writs on bureau
- Property tax or income tax outstanding, tax liens
- Need to go into a consumer proposal, bankruptcy or not fully discharged
- Orphaned mortgage, current lenders not renewing
- Mortgage higher than the current market value due to market correction
- Power of sale (foreclosure)
- Total household income of $45,000 or more
How we do it…
We are not the typical institutional lender or a mortgage provider; we are a private lending group. We have private individual funders that look at each file to see if they would be interested in helping fund this file to make the deal work for you. We love to help each and every family in Canada, but due to location, income and the overall shape of the house; there are a percentage of files we just cannot help due to lack of interest from our funders.
What does this program cost?
Our activation fee is $500 and it is only charged after we approve your file. Due to high administration cost, this fee is not refundable. There is still a risk we cannot find a funder for this deal, this you must consider when going through our program. We will do the utmost to close every deal we process; our track record has been greater than 85%.
In some cases we are also charging up to 2% commitment fee. This is what we charge to keep our program alive so we can help other families in the same shape as yours. We have been hearing of private lenders that charge up to 10% as fees, so ours tend to sound cheap.
What happens if I default….
The security deposit you provided in the beginning is the only collateral for our private funder. If the house was purchased for this sole purpose, the deposit is refunded minus the cost to list and sell this property, mortgage discharge cost plus penalty, broker commissions, property management expense, legal fees, clean up and getting the property ready for sale and any other cost associated in liquidating this property. The option fee is also forfeited since the option is not exercised.
This sounds drastic but it is no difference from any of today’s mortgage or car loan. If you stop paying the bank, the lender will come and take it away.
Get Started Now…
If you like what you see, we invite you to visit your licensed mortgage agent. 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.
