There are two major barriers to homeownership in America. The first barrier is acquiring the money for down payment and closing costs. The second barrier is meeting the credit standards to qualify for a loan. The two barriers work together creating a cycle that is hard to break. That is, the worse your credit the more money you need for down payment, the better your credit the less you need. But, if you had the money for a large down payment chances are you wouldn’t have the credit problems! Or conversely, if you have perfect credit you probably have money and don’t need a loan with a low down payment requirement. See what I mean? This cycle is hard to break and will likely keep a large percentage of Americans trapped as renters…never enjoying the safety and security of homeownership.
SHBA has recognized the above imbalance and has created a system with the specific needs and criteria for homeownership. While most real estate agents and mortgage companies are not interested in helping people with these challenges SHBA is prepared and has the tools to assist you with your needs. We guarantee that with our combined efforts and teamwork you will soon enjoy the benefits of homeownership.
How the Program Works
Before being accepted into the homeownership program SHBA prescreens every applicant. During the analysis, SHBA personnel calculate current debt, monthly income and then age all outstanding derogatory debt on the applicant’s credit report. Using established relationships between debt, income, and credit aging. SHBA ensures that the customer will be able to purchase a home in 24-months or less.
Applicants who are accepted and enroll in the SHBA program will have their information reviewed by a mortgage professional and will be classified as either Qualified or Non-Qualified Approvals. Qualified Approvals, those with acceptable employment, income, and credit, will purchase their home right away. Non-Qualified Approvals will choose from one of the following Rent-To-Own options while SHBA helps you become Qualified.
Lease Purchase, allows you to live in your home as a renter and then purchase it at the end of your lease.
You simply continue living in your apartment or rent house while you are becoming qualified to purchase your own home.
It is your choice but regardless of which Rent-To-Own option you choose SHBA helps you Qualify and ultimately purchase your home.
Once you are approved and find a home that you are happy with you will be required to make a deposit of either 4% to 7% of the purchase price of the home depending on the house that you choose and based on your credit history. That deposit is deducted from the sales price of the home and is due upon the signing of the lease and the exchange of keys. In some instances where a tenant can’t come up with the entire deposit, a payment arrangement can be worked out where a small fee will be added to your monthly payment until the balance of your deposit is paid off.