IMMEDIATE LOAN QUALIFICATIONS
If you are trying to purchase a residential property with an immediate loan, several requirements apply:
1) You MUST have a steady source of income for 12 months or longer (and government assistance or social security does NOT count). A source of income can be from a job or a business or investments.
2) You CANNOT have any "open" delinquencies, liens, judgements, or lawsuits pending.
3) You MUST be current on your debts. You must be on time with any car payments or credit cards that you are required to make payments on. You must be current for at least 6 months.
4) You must have a credit FICO score that is at least in the 500s.
Experian National Consumer Assistance Center, PO Box 2104, Allen, TX 75013-2104, (888)EXPERIAN, www.experian.com
Trans Union LLC, Consumer Disclosure Center, PO Box 1000, Chester, PA 19022, (800)916-8800, www.transunion.com
Equifax Inc., PO Box 105496, Atlanta, Georgia 30348-5496, (888)532-0179, www.equifax.com
5) You cannot currently be in bankruptcy or foreclosure proceedings. No lender will issue a loan to someone who does not have a discharged bankruptcy. And NEVER have I seen a lender give a new loan on a property that’s currently in foreclosure. (If you can’t make the payments, what makes you think someone will give you a new loan?)
6) You must have or be willing to put up to 5% down (even though you probably won’t be required to do so).
If you are lacking in one or more of the above requirements then you MUST go through the lease-option process. NO EXCEPTIONS!
To Have Loan Prequalification Forms Sent To You, please Click Here.
THE LEASE-OPTION PROCESS
This is what we do:
1) The basis of this is in striking a deal with a property owner. So where will you be looking to find your new home:
a. Call and visit properties "For Sale By Owner."
b. Call and visit available properties "For Rent By Owner."
c. Target desirable neighborhoods.
d. Sellers can be found many other ways.
BONUS FOR FINDING PROPERTIES!!! MAKE EXTRA CASH!!!
2) Once you find a desirable property and provide me with information to contact the owner, I will work to make premium offers to the homeowner to get them to accept our offer that will allow you to purchase the house on flexible terms using a lease option. We may have to keep looking to find a seller that will work with us. BONUS FOR FINDING PROPERTIES!! MAKE EXTRA CASH!!!
3) During the lease-option period, you will be responsible for making all payments ON TIME, making attempts to clean up your credit, making current payments on ALL current debts, and basic maintenance of the property (landscaping, etc.).
a. The reason someone with bad credit should and needs to go through a lease-option period in order to qualify for a "real" mortgage is that they are proving "ability to pay." They are also working on cleaning up their credit which makes them better candidates after the 12 months.
b. In addition, since you are making payments on the same property that you will be purchasing, this also looks good when seeking out a lender after the contract period is over. It shows the lender that you are able to make the monthly payments, and you will be continuing to do so on the same property after you are approved for a mortgage.
c. You must keep a steady source of income, must keep up on your payments of both the property and other debts, and must make an attempt to clean up your credit.
4) Several months before the lease-option contract comes to term, we will begin the process to get you a loan on the property. So long as you were able to fulfill all of the requirements during the contract period, you will be able to get a loan.
