A: Owner financing is where WE, the owner, become the bank. No need for a traditional mortgage to buy the home, we finance the purchase of the home just as a bank would but without the hassle.
Q: What are the benefits to buying with Owner Financing?
A: No bank qualifying. No hard requirements to reach. Very low credit score requirement. Plus you get all the benefits of home ownership.
Q: How long will the application process take?
A: Generally it takes about a week. This is dependent on how fast you are able to return the forms and paper work we request as well on how quickly we are able to get required forms back form employers and landlords.
Q: What does my monthly payment include?
A: With our program your monthly payment will include the Principle and Interest, Property Taxes, and Home Owners Insurance. There are no extra hidden costs or payments that will be added to your monthly payment amount.
Q: How can I make my monthly payments?
A: You can send in a money order or cashiers check each month or you may have the option to wire your monthly payment (you would be responsible for any wire transfer fees incurred).
Q: What is the length of the contract?
A: The contract is anywhere from 20 - 30 years. Depending on the property you purchase there may be a balloon payment required. This benefits you because you are given a period of time, generally 5 years, to allow your credit to heal and get better. As long as you make on time payments you should be able to go to a bank or credit union and apply to refinance your home. By refinancing you are usually able to cut the interest rate in 1/2 causing your monthly payments to go down considerably.
Q: Is there a pre-payment penalty clause?
A: No, you can pay off your home at any point you wish.
Q: Can I have pets?
A: YES, you may have as many pets as local city regulations allow. You will also need to register your pets if required by your local city or county.
Q: Is there a home warranty available?
A: YES, we do offer a Home Warranty with every home. You are able to purchase a home warranty through Old Republic Home Warranty or through a home warranty company of your choice. You will be responsible for the purchase of this warranty and usually they are under $400 for a year warranty. Regardless if you purchase a home warranty or not the home is being sold to you AS-IS and as such you will be responsible for all repairs and maintenance.
Q: What if my furnace, water heater, electrical system or plumbing doesn't work; will I be required to fix it?
A: You will be given the option to buy a home warranty through Old Republic Home Warranty. If you choose to get the home warranty any defects with any systems will be covered by them. You will have to read, apply for and pay for your Home Warranty directly with them, we do not make any money off of the sale of these home warranties. If you choose to decline the warranty then you will be responsible for all repairs and maintenance to the home.
Q: What is the down payment?
A: Down payments vary from property to property but are generally any where from $700 - $1500. This will go towards the purchase of the home, so it is in you best advantage to pay as much down as you can. You are more than welcome to put more down, the more you pay down the lower your monthly payments will be.
Q: When can I move in?
A: You are able to move into the property once we get your down payment and you have received a copy of the executed contract, that is a copy of the contract that has both the Buyer and Sellers signatures.
Q: Where can I get my contract notarized?
A: You should be able to get your contract notarized at your local bank where you have an account. Usually account holders are offered this service for free or for a very minimal amount.
Q: When will my payments start?
A: Generally your payments will start on the 1st or 15th depending on when we receive your down payment and signed contract back. If we receive your contract and down payment back between the 1st -14th your first payment will be the 1st of the following month and if we receive your down payment and signed contract between the 15th and 30th (31st) your first payment will be due the 15th of the following month.
For example if we receive both your down payment and signed contract back on September 13th your first payment will be due October 1st and will continue on the 1st of each month for the remainder of the agreement.
Q: What are the late charges if I pay after my due date?
A: The late charge is 5% of the total monthly payment amount. For example if your total payment is $628 a month the late charge would be $31.40 and would be due when you pay the monthly payment.
Q: How will I know where to send my Payments?
A: You will receive a copy of your application which has the payment information for you. You will also receive a copy of the "Servicing Agreement." This agreement will tell you exactly where and to who the payments need to be made out to.
Q: Do you have a referral program?
A: YES, for each referral you bring us we will give you a $50 VISA gift card when your referral signs a contract and sends in their deposit.
