There are a million ways in which a home buyer in Texas, primary purchaser or home investor, would look for the harvesting power of a lease to own or lease to buy opportunity. Here in my Frisco Real Estate market, I see people who are on the verge of qualifying, but lack the credit and/or credit score to qualify for a loan, and I see some that have great credit but maybe have short job history. This lease-to-own program, called Community Empower by the HYCA Development Services, LLC is a win, win, and win situation for all. (Scroll to the bottom of this post to see details specific to this program.)
Win – For the buyer
The type of buyer that would qualify for this program is one that is likely not to far off from financially affording a home and on the cusp of credit qualification. Most of the time, buyers become drawn into the desire to buy because they come to a point in life that they realize it’s time to own, and/or they run into a home that they love. The tough thing for such a buyer, on the cusp, is that they get motivated and driven and when they are told they can’t buy right now but need a little time to get their credit turned around or establish the “seasoning” required by underwriting for employment time lines, the wind is removed from their sale…pardon the pun. This program will approve you for a lease to own in a matter of minutes and the application comes with no costs. Now, you can offer a contract on a home today and have that “carrot” in front of you that entices you to get your credit turned around sooner.
Win – For the Seller
Take it from me, a 9 year veteran loan officer, there are loads of sellers out there at any point in time that wish they could sell their home and would be willing to negotiate if they could just find a qualified buyer. With the new more strict lending programs since the demise of the sub-prime lending world, there are millions of willing UN-qualified buyers. The key here is, this programs increases the number of buyers in the market. Community Empower guarantees the monthly payment if the tenant cannot pay the rent during a short lease . In the end, the structure of this program helps sellers get buyers for their home where the right buyer without access to such a program in this market is not available.
Win – buyers and/or sellers agent (Realtors that might or might not be involved)
Most Realtors have the common interest of their client at heart. The interest is realizing the value of the home, and trying to bring that REAL value and the buyer or seller’s emotional value in line. Typically, once a Realtor can get a seller to price their home at or very near market levels, that home will sell in 30-60 days, and once a buyer’s agent can convince his buyer to bid appropriately in conjunction with the market of the homes he is hunting, he will get an accepted offer sooner. That being said, this program plays a mediator or liaison in the process and at the time of contract, Community Empower requires the request of an appraisal. MOST of the time, appraisals are non-biases and accurate. When advised correctly by their agents, this step in the process plays the roll of bringing the two perceived values between the buyer and seller to a negotiable and accurate point. In the end, the buyer’s agent gets a closed “deal” for their buyer, and the selling agent gets a resolution for the ‘hard to sell’ property for their seller.
Program Specifics…Community Empower says this about the benefit of this lease-to-own program:
The new Lease-To-Own program from Community Empower is an opportunity for you to achieve the dream of home ownership with no down payment. This program allows you to lease the new home of your choice for up to 18 months (some states vary). During the lease period, you will work with Community Empower to improve your credit so you will be qualified for a mortgage loan at the end of the lease. After you qualify, you’ll take-over the mortgage payments and become the homeowner!
For a step by step process on how this program works through the lease to own process, click LEASE-TO-OWN.