ANSWERS TO FREQUENTLY ASKED QUESTIONS
The following are answers to frequently asked questions that many prospects and clients have had over the years. While we hope that these answers will help you get a basic understanding of what our company does for people like you, the best way to see how our company has helped hundreds of people over the years achieve responsible homeownership is by taking the time to meet with one of our representatives. During your free homeownership consultation, we will go over your specific situation, your credit and what can be done to help you achieve a goal that you and your family deserve. After reviewing the answers to frequently asked questions, click here to complete our brief survey and receive a free homeownership consultation.
1. I have seen in your property listing page that you may have some featured properties that say "For Sale Only." If I am not qualified for a mortgage right now, can I view these homes?
2. What exactly is a rent-to-own (lease to own) home?
3. How does being a Tenant-Buyer differ from being a renter of a home?
4. Why does your company feel that renting is bad?
5. How do I qualify for your Homeownership program if I am interested in one of the homes that you are currently marketing on your website?
6. What if I want to get help with my credit and financial profile but don't see a home that I am interested in or what if I still have over 3 months left in my current lease?
7. How do you determine the monthly payment for your homes?
8. What if I do not have the down payment required to choose one of your homes listed and do not qualify for down payment assistance?
9. How is NC Homeownership Center different from other companies or individuals that provide rent-to-own or lease-to-own properties?
10. How do you qualify me as a potential Tenant-Buyer or Homeownership client?
11. I have reviewed your current property listings and none of the homes meet my specifications or areas where I am looking for a home?
12. How will I be able to qualify for a mortgage?
13. Do I have to pay any money to become a Tenant-Buyer?
14. What do you mean by rental credit?
15. If I see a home that I love in one of the real estate books or I see a home listed by a realtor, can I get one of those homes?
16. What if I see a home that is FSBO?
17. If I don’t have the down payment requirements for a home right now will I still be able to participate in your program?
18. This is a scam! How do I protect myself from being taken advantage of?
19. What if I am in the process of foreclosure or am behind on my payments on my current home?
Q: I have seen in your 'Property Listing' page that you may have some featured properties that say "For Sale Only." If I am not qualified for a mortgage right now, can I still view these homes?
A: Featured listings are primarily for our clients currently enrolled in our Homeownership Program. Homes that are listed in the 'For Sale Only' category are homes that we are looking for immediate offers to purchase the home. If you are not yet enrolled in our Homeownership Program, then we encourage you to complete our Homeownership Questionnaire and schedule your FREE Homeownership consultation. This will allow you and NC Homeownership Center to see where you currently stand and at that time we may be able to schedule a showing for you. Many of those clients enrolled in our Homeownership Program are able to view these featured homes due their adherence to our Homeownership Curriculum. If you are a member of our Homeownership Program and would like to view one of these featured homes, please contact your Homeownership Counselor and we will arrange a showing. Once again, if you are not currently a member of our Homeownership Program, please click here to complete our brief Homeownership Questionnaire/Survey and let's schedule your FREE Homeownership consultation TODAY!
Q: What exactly is a rent-to-own (lease to own) home?
A: A rent to own home is a home that an owner has agreed to rent to a tenant while giving them the option to purchase the home after a defined period of time. In most cases, the owner is not involved in helping the tenant improve their credit or financial situation so that they can qualify for a mortgage. At NC Homeownership Center, we have created a Homeownership Program that helps our clients improve their credit scores while providing them with financial counseling and personal coaching to assist those that select one of our quality homes. A Tenant-Buyer is someone who enters one of our homes which the intention of completing a home purchase. When one of our Tenant-Buyers adheres to our curriculum they can anticipate qualifying for a mortgage within 3 to 12 months of entering the home.
Q: How does being a Tenant-Buyer differ from being a renter of a home?
A: A Tenant-Buyer is someone that wants to own the home that they are occupying while a renter only wants to pay a recurring monthly payment for the home. A renter gets no financial benefit from living in a home belonging to someone else, while a Tenant-Buyer receives some financial credit for the monthly payments they make. Our Tenant-Buyer program is geared towards those individuals and families that want to experience the benefits of home ownership today without being subject to outrageous mortgage rates due to damaged credit or other issues that our homeownership program can prevent! Typically, a Tenant-Buyer in NC Homeownership Center's Homeownership Program should be in position to qualify for a mortgage within 3 to 12 months.
Q: Why does your company feel that renting is bad?
A: Amazingly, this is a question that we get quite regularly from prospects. For the record we do not feel that renting is bad at all. Most everyone will rent or has rented a home or apartment for a period of time. If you are new to an area and are unsure about where you want to live then renting may be the best option. Also, for those individuals that may be considering relocating, renting is also a viable option.
However, when renting becomes a lifestyle that is when it becomes a problem. Based on rental statistics, the average rental price for a 3 bedroom apartment or home in the Piedmont-Triad, NC region is $910 per month. Over a 5 year period, you would spend $54,000. Over a 10 year period, you would have paid $109,000 on something that you would never own. In our opinion this is money that you might as well have thrown away. If you spent this same amount of money on a home, not only would the value of your home significantly increased, you would have created value through equity accumulation and additional tax benefits.
The statistics are staggering and proven that when done correctly, responsible homeownership is an excellent way to build long-term wealth. This is what our company is trying to promote.
Q: How do I qualify for your Homeownership program if I am interested in one of the homes that you are currently marketing on your website?
A: Today, most buyers must put a down payment on a home regardless of their credit score. FHA (Federal Housing & Administration) loans require a down payment of 3.5% of the sales price of the home. As a result, we typically require our Tenant-Buyers to put a down payment of 3.5% as well. This money is your down payment on your home and will be applied as your down payment during your mortgage loan qualification process. In addition to this small down payment, we also make sure that you will qualify for a mortgage based on your income and debt ratio. Finally, we will find out if you are truly motivated to own a home and willing to go through our homeownership program.
Q: What if I want to get help with my credit and financial profile but don't see a home that I am interested in or what if I still have over 3 months left in my current lease?
A: You do not have to be in one of our homes to participate in our Homeownership or Home Preparation Program. Our goal is to create a pipeline of buyers that are ready to purchase quality homes for us. We work with our clients by helping them improve their overall credit and financial profile so that they can qualify for a home mortgage. Everyone needs a legitimate and reasonable game plan to accomplishing their goals. We provide this game plan for those tired of renting and ready for responsible homeownership.
Q: How do you determine the monthly payment for your home?
A: The monthly payments for the homes that we list or the homes that we purchase for our clients are determined by the market value of the home, the estimated mortgage payment that we estimate for that particular home, and the amount of your initial down payment/Option Fee. We want our clients to be familiar and comfortable with their monthly payments. Therefore, in most cases, the payment for the home that we market will be very similar to what the monthly mortgage payments for the home will actually be. We based our payments using the model that most FHA mortgage loans use. The mortgage payment includes principle and interest, prorated monthly property taxes, prorated homeowners' insurance and PMI or private mortgage insurance monthly premium. FHA mortgages require that borrowers put 3.5% of the sales price of the home as a down payment. Once this criteria is fulfilled, they can pursue the purchase of the home assuming that they are credit eligible. If a client pays 3.5% of the sales price of the home as down payment for the home, they will get the lowest payment posted, which should be very close to what your mortgage payment will be (give or take a few dollars). If a client pays 1.75% of the sales price of the home, which would be the minimum down payment for any of our homes, they would the highest payment posted. Obviously, there is incentive to make the full down payment but we will be flexible for outstanding prospects. The typical Option Fee that we may require on a home will typically range between 2% to 5% of the sales price. This is determined on a case by case basis. Below is an example of our monthly payment policy:
Home located at 1234 ABC Lane is listed for sale for $100,000 with a monthly payment range of $600 to $800 per month. To qualify for an FHA mortgage, the borrower must contribute 3.5% of the sales price of the home towards the purchase of the home. In this case, the down payment requirement for FHA would be $3,500.
If a client makes a $3,500 down payment/Option Fee, their monthly payment for the home would be $600 per month.
If a client makes the minimum down payment/Option Fee of $1,750 (1.75% of the sales price), their monthly payment would be $800.
Any down payment/Option Fee between $1,750 and $3,500 would lead to a payment between $600 and $800.
Our goal is to be flexible in our payment options for all clients but we do place a high emphasis on what FHA mortgage lenders are looking for. For war veterans, we do use a different criteria. Please contact us for more details.
Q: What if I do not have the down payment required to choose one of your homes listed and do not qualify for down payment assistance?
A: As is the case with most goals, accomplishing the goal of responsible homeownership requires sacrifice and many of our clients borrow money from family and friends in order to take this important step. Also, because of the fact that you will be purchasing a home, you can access funds through your 401-K. However, we believe that helping our clients establish a financial plan to save their down payment produces the greatest success. If you need help setting up a plan to save money for the purpose of owning a home, then we would suggest you apply for MPI's Homeownership Program. This program will begin the steps to improving your credit score and with provide you with financial and debt counseling along with personal coaching! Click Here for more information about our Homeownership Program.
Q: How is NC Homeownership Center different from other companies or individuals that provide rent-to-own or lease-to-own properties?
A: NC Homeownership Center understands how important your credit profile is when qualifying for a quality mortgage. We actually have a structured curriculum for our clients that are in one of our lease to own homes. Our homeownership program is geared towards improving your credit profile and providing every client with financial counseling so that you can think money smart and get a quality mortgage within 6 to 12 months depending on your current credit profile. Our goal is not just to sell you a home but help you get to the next financial level that you are looking towards!!!
We also understand that the lease to own option may not be the best option for everyone. The simple question that we typically pose to everyone we meet with is this: "If you knew for a fact that you would qualify for a home mortgage to purchase the home that you and your family want within 12 months or less, how would that affect your current decision-making about your current housing situation?"
Since our clients get qualified within 4 to 12 months after enrolling in our Homeownership Program, this is the question that you need to ask yourself right now.
Q: How do you qualify me as a potential Tenant-Buyer or Homeownership client?
A: The main qualification criteria that we use to determine whether we will approve you as a Homeownership Client are your ability to pay a future mortgage (based on income) and your willingness to repay a future mortgage (based on our brief interview with you and your application). Everyone wants to own a home, but the sad truth is that the majority of individuals currently renting are not ready to accept the responsibilities of homeownership. As a potential homeowner, we understand that you have damaged credit, but we will want to know what you are doing now and willing to do to change your current situation.
Q: I have reviewed your current property listings and none of the homes meet my specifications or areas where I am looking for a home?
A: While we actively look to showcase 3 to 5 new listings on our website each month, we are able to showcase available homes to our Homeownership clients that have the requisite qualifications to participate in our lease to own program, If you had a chance to review our Homeownership Program and feel that you would be able to follow our process to improve your credit and financial profile, then we encourage you to allow MPI to perform a customized home search on your behalf. In order for us to attempt to perform a customized home search, we will require you to enroll in our Homeownership Program. Click Here to find out more about our Homeownership Program. Be realistic in your expectations because we will need to qualify you based on your income and the price of the home.
Q: How will I be able to qualify for a mortgage?
A: There are many factors that will determine your ability to get a mortgage loan. Our Lease to Own/Homeownership program provides all clients with a game plan that details your estimated qualification timetable and the steps that we will take to help our clients improve their credit and financial profile. Our Homeownership Program allows us to address your credit profile and helps us to improve your probability of obtaining a mortgage loan with an acceptable interest rate. However, the way you use your credit once you join our Tenant-Buyer program is extremely important. Moreover, your payment history with us will also be a major qualifying factor as well. Our homeownership program, your payment history with us, and how you use your credit once you join our program will all factor into your ability to qualify for a mortgage within 6 to 12 months. We have the tools for you and it is your responsibility to use them. We urge you to click here to understand the full process of qualifying for a mortgage. This article was written by Jack Guttentag.
Q: Do I have to pay any money to become a Tenant-Buyer?
A: All Tenant-Buyers are required to pay a minimum down payment ranging between 2% and 5% of the sales price of the home they ultimately select. This is a down payment that is credited to you once you qualify for a quality mortgage! This down payment is the difference between the sales price and loan amount. By making timely payments, we will contribute extra money towards your initial down payment. The higher your down payment, the more money we will contribute towards your initial down payment. If none of the homes that we currently have available fit your specifications, don't worry, you can still prepare yourself for home by applying for our Homeownership Program or by allowing us to do a customized home search on your behalf! Click Here to APPLY for our Homeownership Program TODAY!
Q: What do you mean by rental credit?
A: During the first 6 to 12 months, you are actually renting from us while we help prepare you for a mortgage. However, what makes “renting” from us different from any other rental situation is the fact that you will be living in a home that is yours and that a portion of the rent will be contributed towards your initial down payment as long as you make timely monthly payments. For example: If you are paying $1,100 each month towards a home and $200 of your payment is considered your rental credit if you pay in a timely manner, then $2,400 will be contributed to your initial down payment (provided that you have paid your payments in a timely manner). There are some homes that we provide where we will pay all closing costs for the mortgage you qualify for the home. BY MAKING TIMELY PAYMENTS, YOU ARE BUILDING EQUITY WITH EVERY PAYMENT!
Q: If I see a home that I love in one of the real estate books or I see a home listed by a realtor, can I get one of those homes?
A: We look to make between $4K and $10K for every home that we acquire for our Homeownership Program. Realtors are extremely important to individuals selling their homes. Realtors help market homes to qualified buyers. However, when a homeowner sells their home to a buyer, they are required to pay a commission of 5% to 6% depending on the terms of the listing agent. In order to protect our Tenant-Buyers/Homeownership participants, we will never sell a home for more than its market value. As a result, it is difficult for us to make guarantees that we can acquire any home that may be currently listed with a realtor. However, as a member of our Homeownership Program we will do our best to negotiate and try to acquire a home that you would qualify for.
Q: What if I see a home that is FSBO?
A: It is much easier for us to work with homes that are FSBO since we would be buying and negotiating directly through them. Once you are approved to be a Tenant-Buyer we will gladly work with you to make offers for these homes.
Q: If I don’t have the down payment requirements for a home right now, will I still be able to participate in your program?
A: While we do require a minimum down payment for every home that we place a Tenant-Buyer in, at times we are willing to work with individuals or families that may not have saved this amount at the time of approval into our program. We are willing to work with any individual or family that is truly ready to accept the responsibilities of homeownership. If you are truly ready to accept the responsibilities of homeownership, submit your application today. After you submit your application, you will hear back from one of our qualified staff members! Homeownership is one of the key building blocks in any sound financial plan. Don't wait another week, month or year without taking charge of your future! We are more than willing to help you achieve your goal!
Also, as we have stated before, if you don't have the required down payment for one of our homes, don't worry! Just apply for our Homeownership Program and take the steps today to position yourself for responsible homeownership. Don't waste another day thinking that things will just take care of themselves. Take charge today and make it happen TODAY!
Q: This is a scam! How do I protect myself from being taken advantage of?
The thought that a company would purchase and/or acquire homes specifically for individuals with damaged credit or the thought that you could become a homeowner in a short period of time after having years of damaged credit does sound like a potential scam.
However, our target market are individuals with damaged credit who need some guidance and support to accomplish their goal of achieving responsible homeownership. However, the success of our clients depend primarily on their commitment to our curriculum. The best personal trainer in the world cannot help someone lose weight if they constantly ignore the advise and information that their trainer is giving to them.
The hundreds of clients who have become homeowners by participating in our Homeownership program have been dedicated and committed. Those that have not have been kicked out of our program and as is typical with people that fail, they blame us or others for their failures.
If you are committed....if you are tired of the status quo....if you are tired of wasting your dollars renting, we will help you and family achieve your goal of responsible homeownership. You will not have to worry about being scammed. Let us show you our track record and show you the peace of mind our current and past clients have had! If you want to speak with
Q: What if I am in the process of foreclosure or am behind on my payments on my current home?
A: If you complete our brief form, we can help you avoid foreclosure and protect your precious credit.