Saturday, August 14, 2010
With as little as 5% down, regardless of credit, "lease to own" may be your solution
Purchase or refinance with as little as 5% down, regardless of credit. Lease to own while you rehabilite your credit. For more information call David Grossman at 416 876 2031 or visit http://www.mortgagemensch.ca.
David arranges mortgage, and Lease to Own solutions, in Ontario Canada.
I recently had several queries from realtors about lease-to-own financing so I decided to send out a product refresher. Also, I want to highlight two very important points below!!!
i) Your buyer gets to choose the property s/he wants to lease, and
ii) You (the realtor) will act as the buyer's agent in the transaction and receive compensation as you normallly would when representing any buyer.
Who needs lease to own financing?
People who have damaged credit and cannot qualify for a mortgage today. With lease to own financing your client chooses the property they want to buy. They should have at least a 5% deposit and they must have solid, provable income.
How does it work?
Your client will lease the property for 2-3 years during which time they can rebuild their credit so they will eventually qualify for the mortgage they will need to buy the property at the end of the term. Their original deposit plus approximately 20% of the monthly lease payment is applied towards the down payment when they exercise the purchase option.
What is the process?
First we prequalify your buyer to establish a maximum purchase price. At the same time, we match your buyer with one of our investors.
Who buys the property?
An investor will buy the property. You shop for a property with your client and they choose the property they want to buy. You let me know when you are ready to prepare an offer - at that time you be introduced to the investor whose name will go on the offer. You, the realtor, will represent the buyer/investor in the transaction.
For more information watch the video interview or call me, David Grossman at 416 876 2031.
Whatever your mortgage query, I look forward to hearing from you!
David Grossman MBA
"The Mortage Mensch"
Community Financial Group
Tel: 416 876 2031
Residential, Commercial, Industrial, Investment properties.