Home Ownership, Your Dream Home

No Qualifying, No Income Verifications!

TRANSACTION COSTS

Applicants must be agreeable to a higher cost in connection with acquiring their residential property. Some costs exist even within the framework of a mortgage loan. Yet others are specific to this program:

The analysis fee is charged to locate and place the transaction with a private investor. It serves no other purpose. It is paid directly to the program at the same time the application is submitted. It is refundable only in the event that the application is not approved or if the transaction cannot be completed on account of the assigned investor.

The appraisal fee is contingent on the willingness of the seller to carry this expense. If payable, it is paid directly to the appraiser.

The cash consideration represents the amount of money that the applicant must provide to complete the transaction. These funds must be in the form of cash. Down payment assistance programs typically used in connection with mortgage loans are not compatible with this program. Additionally, equity in any property may not substitute for cash consideration.

The net investor fee is what the investor charges to perform on a non-qualifying transaction. It is a small price to pay for an enormous individual commitment on the part of the assigned investor. The exact amount of the investor fee is determined by the transaction size and the amount the investor is agreeable to. It is not possible to determine in advance of submitting an application where the investor fee will precisely come in. Therefore, applicants should base their decision to apply on the maximum investor fee of 15% or 15K, whichever is greater. The investor fee is not paid out-of-pocket. It is rolled in.

The closing costs incurred by the assigned investor in connection with purchasing the property applied for is passed on to the applicant. It is not possible to itemize the exact costs in advance, though they will be detailed prior to completion of the transaction. Applicants that need this information prior to applying for the program, should not apply.

Residential transactions are underwritten through the use of a realtor and are subject to a 3% realtor fee not listed in the chart above. Applicants should apply for a program approval only if they are agreeable to the fees involved, some of which are known prior to the submission of an application.

Consultant Fee
Since the home trust program does not deal directly with individual consumers, Southwestmart, Inc., as an authorized affiliate of the trust, will provide you consultative services and submit your application on your behalf. In addition to the above, Southwestmart, Inc. as an independent financial consultant to you and as an affiliate of the trust, has a total fee of $750 payable as follows:

The $750 Consulting Fee payment to be paid at the time of submitting the Client Consulting Fee Agreement. A copy of the Client Consulting Fee Agreement can be submitted to Southwestmart, Inc. as an email attachment to: support@swmfinancial.com , faxed to: (877) 815-0654, or mailed to the address above. The $750 Consulting Fee Payment can be in the form of a check, money order or cashier's check made out to Southwestmart, Inc. Payment can also be made online at the following URL: http://www.swmfinancial.com/payfee.htm Upon receipt of the Consulting Fee Payment and a completed Client Consulting Fee Agreement, the Client will be sent an AHT application and the required AHT Residential Acquisition/Reacquisition Program Guide via an email PDF attachment.

CONSIDERATION REQUIREMENTS

The residential property cash consideration requirement is not treated like a fee. The amount is generally set at 15% and is calculated on the property sales price plus investor fee. It is credited to the transaction in a similar way that a down payment is credited on a real estate purchase. Exceptions to the amount required are detailed in the following chart:

The total out-of-pocket expense is limited to the analysis fee, cash consideration and less than $2000 if the closing costs.

Properties needing advance funds for construction require double cash consideration.

Investment properties often may be approved under the same cash consideration guidelines as non-investment properties, but then only at the discretion of the assigned investor. Applications for investment properties may be submitted only if the applicant is prepared to come up with up to twice the amount of cash consideration as required in connection with a non-investment property.

APPROVAL REQUIREMENTS

It is sometimes difficult to adjust to the idea that an applicant will be approved regardless of credit, income or job status verification. This however, is definitely the case, as this is not a loan and money is not being borrowed. The program does not evaluate the applicant beyond personal character references. Instead, the property and appraised value are the central focus. As long as minimal requirements are met, the application will usually be approved:

--Required cash consideration available. Usually just 15%.
--Normal property structure not remotely located.
--3 character references.
--Stated income indicating that the applicant can afford reasonable monthly trust payments.
--Analysis fee submitted with application.

For each application resulting in an approval, an approval letter will be provided. Approvals expire one (1) year from the date they are issued.

If a property on a pending application is withdrawn for any reason, a new property may be submitted as a replacement during the approval period of one year. In this case a new analysis fee is not required.

Residential investment properties are compatible with this program, but may at the discretion of the assigned investor, require a greater level of consideration payment.

APPLICATION PROCESSING

The following steps take place in connection with the processing of a residential property acquisition application:

--Application and analysis fee is received by the program.

--Applicant references are verified.

--Formal approval is issued.

--Approval letter is provided.

--Investor is assigned to the applicant file.

--Consideration is submitted.

--Important applicant disclosures are presented and executed.

--Appraisal is ordered and issued in the name of the assigned investor.

--Investor secures a non-owner occupied investor loan for the property.

--Closing is scheduled.

--At closing, the assigned investor closes on the conventional loan. The applicant closes on the trust agreement. The trust is executed.

--The applicant receives the keys to the property.

While the assigned investor in fact purchases the property and the property is titled to the investor, the actual property is placed in the intervivos trust with the applicant receiving first option on the trust.

The term of the trust is 7 years. The applicant may choose to cash out of the trust any time prior to then. After 7 years, the trust must be settled or reinitiated.

ANALYSIS FEE REFUND POLICY

In the event that applicant's application is not approved, the associated analysis fee is refundable, providing the applicant signs a general cancellation form release, Equally, if the assigned investor is unwilling or unable to complete the transaction, the analysis fee is also refundable.

The analysis fee is non-refundable in the event that the application is approved and the assigned investor is able and willing to complete the transaction.

The refund policy may not be superseded by a third party or verbal representation of any kind by any party. In the event that the program grants a discretionary exception to this refund policy, a 25% cancellation charge may apply.

SUMMARY

When carefully examined, this program is seamless and easy to convey. In fact, the processing of an application and closing is by far speedier and less complex than financing via a mortgage loan.

This program is not exclusively suitable for individuals with poor credit. The difference in cost between this program and a commercial mortgage loan is often not noticeably different.

Print Out An Application

Click here to print out an application.

Email us at: support@swmfinancial.com with any questions.