1. How much of a down payment do I need and What is the Interest rate?
A 5% down payment is required. There is no Interest rate used when calculating payments. Our Payments are based on lease factors which adjust according to down payment, location and overall risk of any application. Our payment includes a portion for Down Payment Top Up (20% of total payment – included in payment total when quoted), Property Taxes, Home Insurance.
2. What are the fees?
Be prepared for the following expenses:
· Appraisal Report
· Inspection Report
· ILA – Independent
3. Can I use my own Realtor? Yes
4. Who buys the property?
Our investor will purchase the property on a client’s behalf. On the day the Lease program begins, there is a Lease Agreement and a Purchase and Sale Agreement with an agreed to Purchase Price at the End of the lease so you know exactly what you will be paying for the house when you exit the lease program
5. Who pays for the regular maintenance of the property?
The Tenant is responsible for all maintenance and Utility bills…including the water bills…while in the Lease Contract.
6. What happens if I am unable to exit at the end of the Lease term?
If the issue is related to an unexpected life event during the lease but you have made your lease payments on time, we can extend the lease until you get by the life event and get back on track. If you have missed payments or have failed to follow the Credit Management, you are at risk to lose your Down Payment and accumulated Option Credits.
7. Are Property Taxes and Insurance included in my monthly payment? Yes
8. My credit isn’t great, can I still qualify?
Yes. We have a program which will restore your Credit rating so you can return to main stream financing at the end of the lease term.
9. Can I buy a property anywhere I choose?
In principal, yes, but remember, the further you go away from major city centers the harder it is for us to find an Investing Partner for you.
10. How much will I pay for the House when I buy it back?
We apply a small appreciation rate to the current value to set the future purchase price. This price is negotiated before we close the file and is disclosed in all the legal contracts before the program starts.
11. Can I make an offer on a house if I see one I like?
We strongly recommend you not make an offer in your name. Our Investor will be buying the house in their name to start the lease program and you will be the future owner. If an offer is placed in your name it will have to be collapsed and written anew or if the offer has an assign-ability clause/disclosure on the offer, it may be able to be assigned to the Investor.
12. How long does it take to finalize my application?
We recommend you allow 4 weeks from the time we identify the Investing Partner for your program.