You've got questions - we've got answers!
Do I qualify? Most people who cannot qualify for a traditional mortgage can qualify for this program. Bad credit scores are OK. If you've ever been evicted or declared bankruptcy, you will can still qualify as long as 2 years have passed. You must not have been 60 days or more late on rent within the last year. The closing company will need proof of your income (W2, paystub and/or 2 years tax returns). They will also calculate that your total debt is not more than 55% of your total income.
What is the Closing Company? When real estate is bought/sold, there is a formal Closing process. Home Path Plus uses a Closing Company to ensure that your rights are protected and you are treated fairly. You will provide your financial information directly to the Closing Company, a licensed Mortgage Loan Originator in compliance with all federal and state laws. There is NO COST for you to use the Closing Company.
How do I learn how to repair a house? Lots of ways! Ask your family, friends, coworkers for advice. Join a Facebook home repair group. Use Youtube and TikTok. Google "How do I......" to find videos that walk you through many projects.
Do I have to pay someone to do this? Many things can be done yourself if you're motivated to learn and work. Some high-skill items (plumbing, electrical, roofing) should be hired out. Get creative - what skills do you have? Put up ads in your community Facebook page or town/church bulletin board "Teacher looking to trade middle school tutoring for plumbing repair" etc - you may find a professional who would be willing to barter for something you can do (especially if you provide materials)!
How long do the payments go for? Like the vast majority of traditional home purchases, payments will be for 30 years. 15 or 20 year plans are also available with higher monthly payments that allow you to get to full ownership faster. There is a $150 recasting fee to switch payment terms after the 1st payment has been made.
What if I can't make the monthly payments? Just like every home that is not fully paid for with every bank or private lender, you will lose your home. Don't skip payments. Your housing comes first in your budget!
My mother-in-law (co-worker, friend) says the house is ugly and I will never be able to do this. Tell your mother-in-law she is not on the list of the top 10 people you need to please today, but she can ask again tomorrow. (And after your kitchen repair is complete, invite her over for dinner.)
Where should I start repairing? If you're already capable, start with what bothers you most - maybe the kitchen or the exterior. If you're learning, start with an easy room - a bedroom is best. Fewer skills are needed there. Learn to do those things (sheetrock, trim, painting, installing a floor) and then take on a room with more skills needed.
My monthly payment is about the same as rent - what makes this better? After 30 years of paying rent, congratulations - rent is due. After 30 years of house payments - CONGRATULATIONS - YOU OWN IT FOREVER! If you want to retire and live on Social Security someday, your housing costs are much less in a house you OWN. You need to pay property taxes, homeowner's insurance and keep up with repairs ONLY. No house payments or rent! It is entirely possible the home will be worth $100,000 or more, That asset or any money from selling it are YOURS. Your child can take over the home and live much cheaper than paying rent. It can be sold and the money given to them after you pass. Homeownership is the first and most important step to breaking a family cycle of poverty!
Do you sell to people of my (ethnicity, political association, religion, gender, age, sexual orientation)? Absolutely 100% yes. Home Path Plus does not tolerate intolerance. Homes are offered on a first come basis to anyone who has saved up the downpayment and wants to do this.
I see much prettier houses with all this work already done......Yes, you do. And if you can save up a $25,000 downpayment and qualify for a $150,000 mortgage with a bank, you should do that if you want to! This program is for people with more work ethic than cash. It's here to help hardworking people get a foothold in life. Home Path Plus believes every human is entitled to live with dignity. And every senior can live without fear in their later years, safe in a home they own.
The Closing Company seems like a lot of hassle - why do you do it this way? Using a licensed Mortgage Loan Originator offers you a great deal of protections and is the professional, secure way to do this. Learn all the benefits of a professional closing here: