Home Ownership, Your Dream Home

No Qualifying, No Income Verifications!

No Credit Check Home Reacquisition Program

HOME REACQUISITION (*Comparable to Refinancing)

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 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. No exception applies to the residential property reacquisition program, as it technically translates into a sale by the assigned investor initially purchasing the property from the applicant.

In this transaction type, the assigned investor will take out a non-owner occupied investor loan at up to 80% LTV. Hence 20% equity in the property will remain as equity held in the trust. The difference between the applicant TTV and the investor loan LTV is what is used to fund the fees and the closing costs. Therefore, cashconsideration is not required on the part of the applicant. Cash-outs are available if the property has more than 36% equity. Applicants should apply for a program approval only if they are agreeable to the fees and terms involved, some of which are known prior to the submission of an application.

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 in property is available. Usually just 36%.

--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 evaluation scrutiny.

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.

--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 remains occupant of 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.

EQUITY EXCEPTIONS

If an applicant does not have sufficient equity to take advantage of the Residential Property Reacquisition program, all hope may not be lost.

Let us assume an applicant had 34% equity, just 2% less then the stated program guideline. In this case, the applicant could do one of two things:

1. Raise the difference in cash and provide it to the transaction as a consideration payment.

2. Provide proof the the assigned investor that the monthly payments can be easily made. This option is subject to the discretion and acceptance of the assigned investor.

Note that the 36% equity requirement in connection with this transaction type is more a matter of policy than capability. The policy was developed to prevent property owners from milking their equity and running. Hnce, there is some wiggle room, providing the right conditions exist.

The format under which exception number 2 as listed above is pursued, is not of a negotiating character and is not without risk. The analysis fee remains non-refundable once the application is approved (at 36% equity). An applicant must be prepared to provide 36% equity or to make up the difference via cash consideration. Applications may not be submitted if they are contingent on the exception outlined in point number 2 above.

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 refinancing via a mortgage loan.

This program is not exclusively suitable for individuals with poor credit. Interestingly, many of the applicants are of excellent credit standing, but prefer a discreet reacquisition process with a minimal paper trail.

Application

Print Out Application& Instructions for the Home Reacquisition Program.