Frequently Answered Questions

Q. We really want to purchase a home, but we are not sure where to begin. We had some really tough times and our credit is a mess. We filed bankruptcy. Can you help us?

A. This new program was designed to help consumers just like you. Regardless of the condition of your credit now, you may be able to own a home. First of all you must meet these two qualifications:

1. Be able to make a down payment of 5%. Funds must be verifiable in a bank account for the last 30/60 days.

2. You must have rent receipts for a period of 24 months and show that the rent was paid on time.

Q. I am self employed. I have heard that it is nearly impossible to obtain a home loan. What makes your program so different?

Q. We got in trouble with IRS and owe them money, can you still help us?

A.Yes! If you have a work out payment plan with the IRS and you are making payment as promised, it is quite likely we will be able to help you purchase a home.

Q. How much is the interest rate on these loans? I don't want to pay a high rate of interest.

Q. Are there other benefits to this program?

Q. Do I have to pay money up front?

A. The only fee is a credit application fee which is less than $75.00. This fee will be applied to your closing statement. If you do not proceed with your loan, this fee will not be refunded. The lender will be able to give you the interest rate and closing cost before you invest any additional money.

Q. We are renting right now. Why shouldn't we save up our money, correct our credit and then buy a home?

A. Great question. If you take a historical view of the Austin Real Estate Market you will see that every year since 1990 home prices have increased overall. Interest rates are low and more and more buyers are taking advantage of this time to own a home. When you purchase a home using this special program, you start to repair your credit rating and you take advantage of the current market conditions. Waiting could cost you money!

Q. We have been told by several other mortgage companies that we could not be approved for a loan. Why will your lender be able to help us?

A. First of all you must understand that his loan program was developed for consumers who have credit issues and for individuals who are self employed. In the mortgage business there are any types of lenders. Home buyers who have excellent credit are given "A" rated loans. They pay a lower interest rate and discount points to obtain an "A" rated loan. This program offers buyers an opportunity to own a home, take advantage of the tax benefits of home ownership and repair their credit record at the same time.

Q. Why do I have to pay a higher interest rate?

A. Because the investor who is lending you the money is taking a higher risk. All loans are based on a "risk" factor. The higher the risk for the investor, the more return they want for taking that risk. While the interest rate is a little higher on these loans, the interest rate you pay on your monthly rent is 100%, plus you can't take advantage of the income tax interest and property tax deductions.

Q. When we first looked at homes, out sales price was $150,000 but we were not able to obtain a regular loan. Now the interest rate is higher and they want us to find a home for $135,000. Why?

A. Many times consumers overbuy for their budget. While you thought you qualified for a higher priced home during your initial home search, this program is designed to help you find the right priced home and the monthly mortgage payments that you can comfortably make each month.

Q. You talk about "risk factor" and damaged credit reports. Some other words I have heard is bad or slow credit. I guess my feelings are hurt. We are trying real hard to pay off our debts and restore our credit rating, but it almost seems impossible to do.

A. We understand. It almost seems impossible to get ahead, especially if you are losing benefits when you are trying to climb out from under a financial hardship. Most people during their adult life have struggled with financial difficulties. This program offers consumers who are really interested in getting back on track a window of opportunity to own a home and restore their credit. Congratulate yourself, you are changing your future.

Q. How can I put buying a home using a "risk factor" loan in perspective?

A. We see risk factors most often in normal everyday things. Here are some examples. Car Insurance Companies rate your yearly premiums on your age, driving record, and type of car you own, Health insurance premiums are based on your sex, weight, height and other risk factors. The insurance for your home is based on the construction of the home, i.e. is it brick or frame. The risk the insurance company has to take determines the cost of the insurance. We take that into account and really never think twice about it. Helping good people who have faced the financial hardships and who are willing to do what is necessary to own their home is a worthwhile program.

Q. We're ready to purchase a home, but we want exactly what we want, where we want to live. Can you still help us?

A. No. You are being unrealistic. If you haven't been able to purchase a home because of past credit issues, you must realize how rare this opportunity is to start anew. Owning you own home offers you benefits you will never get renting a house or apartment. I you are not willing to enroll in the program and go with the home builders who are willing to extend a helping hand by making all of this possible, we cant' help you.