Washington Home Solutions

Rent to Own – Frequently Asked Questions

Mike Sumsky — Fri, 02 Apr 2010 18:15:06 +0000

What is a “lease option”?

Also known as a “lease to own”, “rent to own”, or “lease purchase option”, a lease option is an arrangement where you rent a house and pay upfront ‘option consideration’ to have the exclusive right to purchase it at a later date. A lease option allows you to ‘try before you buy’, and gives you time to build a down payment, improve your credit, and ease into home ownership

How do I qualify?

In order to qualify for one of our houses, you will need to be able to afford a reasonable down payment, have the ability to make monthly payments on time, and have a willingness to improve your credit situation so you can ultimately buy the home. That’s about it. We want to set you up for success in a home that is truly affordable, so we will want to see that your gross monthly income is at least three times the monthly payment amount.

What if I have bad credit?

Don’t let your prior credit dings keep you from moving into the home of your dreams now. If you have bad credit, all that we ask is that you have a willingness to improve your credit score so you can qualify for a loan at the end of the lease period. We have several resources to help you achieve this goal.

What if I don’t have the required option consideration (down payment)?

If you don’t have the entire option consideration saved up, you have a few options: Upfront option consideration can be borrowed, so find out if friends or family members are willing to help you out. In certain situations, we may be willing to split your option consideration into two or three separate payments. We also accept items in trade if you are a little short so if you have an extra vehicle, boat, ATV or something else of value, let us know. Finally, we may be willing to trade work for equity if you’re interested in doing some fix-up prior to move in.

How long do I have to buy the house?

Our lease option timeframes are generally for 12 – 36 months. We’ll want to match the house to your credit situation so you have plenty of time to get financing.

What if the property value goes down while I’m leasing the house?

No need to worry about declining real estate prices because you’re covered by the Washington Home Solutions “Never Lose Guarantee”. When you’re ready to purchase, if the house doesn’t appraise for as much, or more than the purchase price that is agreed upon when you begin your lease, we’ll either extend your lease for free, and you get to keep the same low monthly payment, or we’ll sell it to you at the new appraised value.

What happens if I decide not to buy?

If you decide not to buy the house, you are released from all obligations without additional cost. Your upfront option consideration is forfeited.

Will you check my credit?

We accept all kinds of credit situations, from good to ugly. We would like to see a copy of your credit report before you move in, but mainly because we want to see what items that you’ll need to work on during your lease. There may derogatory items on your credit that shouldn’t be there and knowing this in advance gives plenty of time to clear them up. You can even pull a report yourself from one of the many credit reporting websites, and this will not show up as an inquiry on your credit.

Will you give me a loan if I can’t qualify through the bank?

If you can build up your down payment to 8% or more, we will offer guaranteed owner financing.

I found a house I like on this website, how do I apply?

You can download an application, fill it out and send to us through either fax or e-mail. Our houses sell fast, so in order to have a faster response, you can call our office at 360-874-1560 and let us know that you are applying for one of our homes.
Once we receive your application, it usually takes us no more than 24-48 hours to process.

What do I do if I want a lease option, but I don’t see a house on the website that suits me?

If you don’t see what you’re looking for, be sure to fill our our buyer interest form so we can notify you when we get new properties. If you have saved a sufficient down payment, there is a good chance that we can find the perfect property for you.

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Free iPad When You Lease to Own this Bremerton Home

Mike Sumsky — Wed, 31 Mar 2010 14:35:04 +0000

So what the heck does a free iPad and one of our lease to own homes have in common? I’ll let you know in just a second, but it has to do with our 3 bedroom 2.5 bath tri-level home in Bremerton that we’re offering for lease to own.

First of all, we’re dropping the upfront option payment down to $4000 (which applies towards the purchase), so we’ve made it a little easier to afford, AND we’re going to have a really nice giveaway for those who can act fast and reserve this home on our lease option program.

Those of you who know me know that I’m a big fan of Apple products, and I’ve been drooling over their new iPad that is coming out this Saturday. I think it’s such a cool thing that I’m going to be giving one away to a lucky individual or family who signs a lease to own agreement on this home during the next 15 days. (just in case you’ve been living in a hole for the last several months, go to http://www.apple.com/ipad to see exactly what this thing is)

Sure, it’s a shameless bribe, but I also need an excuse to head to the Apple store to put my hands on it. Oh, and if you want more information on the house, including the video tour, just go to the link below.

http://www.wahomesolutions.com/3946Fischer

The offer will end on April 14th, so if you’re interested in the home, let me know right away. Just in case you’re wondering, you won’t have to MOVE into the home by that date, just sign paperwork and put down deposit.

Talk to you soon,

Mike Sumsky

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New Report Picks Bremerton and Tacoma as Best Markets for 2010

Mike Sumsky — Mon, 29 Mar 2010 02:04:41 +0000

With all the speculation of where the real estate market is going to head in the near term, it appears that the folks at Moody’s Economy.com have projected that Bremerton and Tacoma will be among the top cities in the country for some modest appreciation over the next year. Bremerton, which saw an 18% dip in prices since the peak is projected to show a 4.2% increase in home values in the next year, thanks to a relatively strong employment outlook. Bremerton ranks 5th in the country in terms of market outlook according to Moody’s report.

Tacoma took the 8th ranking in the country with a projected 3.9% appreciation through 2011. The downtown area has gone through a revival over the past few decades, and although prices took a big hit when the bubble burst, values are starting to stabilize.

You can see the full report at http://realestate.yahoo.com/promo/where-homes-prices-are-rising

I remain ‘cautiously optimistic’ about a market turnaround but I don’t think we’re out of the woods yet. Foreclosures are still a problem, the tax credit deadline is approaching and the Fed plans to stop buying mortgage backed securities later this week, which will likely mean higher interest rates and some more uncertainty.

Nevertheless, I’m still a buyer in this market but the key is to buy right. If you’re buying a house, make sure you get a great deal, and if you’re moving into a lease to own home, find one where you’ll be safe if the market goes down. All of Washington Home Solutions lease to own homes are protected by the Never Lose Guarantee which insulates you from a potential market drop while giving you 100% of any appreciation. Click the link to learn more about this and our Lease to Own Program.

What’s your opinion of where the real estate market is heading? Feel free to comment below.

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The only truly FREE method to pull your credit report – no strings attached

Mike Sumsky — Wed, 17 Mar 2010 06:19:10 +0000

Not sure where you stand with your credit? You may have seen tv or radio ads advertising a website where you can pull a ‘free’ credit report. (you know, the one with the catchy jingle and the guy playing the guitar) What they don’t tell you is that in order to get a free report, you need to sign up for a trial credit monitoring service which could ding you about $15/mo if you don’t cancel during before the end of the free trial.

If you want a true FREE credit report without having to sign up for a credit monitoring service, you can go to AnnualCreditReport.com. It’s the ONLY authorized source of a free credit report that is guaranteed by the Fair Credit Reporting Act. You’re entitled to a free report from each of the three credit bureaus – Experian, Equifax, and TransUnion once every 12 months.

If you’re interested in buying a home on a lease option, it’s important to know what’s on your credit, so pull your report before you go home shopping so you can see what you need to clean up in order to get qualified for a mortgage down the road. Doing a self-inquiry on your credit will not negatively affect your credit score.

You can request your free report online, by phone or by mail. Visit AnnualCreditReport.com, call 1-877-322-8228, or fill out the Annual Credit Report Request form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281

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Free rent for Washington Home Solutions lease option tenant-buyers

Mike Sumsky — Fri, 12 Mar 2010 05:22:27 +0000

How would you like to skip a house payment next month? Well, if you move into one of our lease to own homes, you automatically qualify for free rent simply by referring other buyers into our lease to own program. We pride ourselves on having one of the best lease to own programs in the Puget Sound area, so if you refer a friend, family member, co-worker or anyone else to us and they move into one of our homes, we’ll give you your next month’s rent for free!

There’s no limit to the amount of free rent that you can get, and we can give you tips on how to locate new tenant-buyers for our lease to own program. Just think about what you can do with the extra money. Save it, pay down debt, or take a much needed vacation, it’s your choice.

For more information, visit our website at http://www.wahomesolutions.com.

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Is it the right time to buy now? Good article from CNN Money.com

Mike Sumsky — Thu, 11 Mar 2010 05:01:30 +0000

With the tax credit set to expire April 30 and interest rates low, is it a good time to buy a home? Here’s a good viewpoint, from CNN’s Money.com: Nab a real estate deal – while you still can

http://money.cnn.com/2010/03/02/real_estate/real_estate_deals.moneymag/index.htm

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Lease To Own – Large Home in Bremerton on 1/2 Acre!

admin — Mon, 08 Mar 2010 22:31:21 +0000

Here’s a great opportunity to ‘lease to own’ this large, 2400 sq. ft. home in Bremerton. It sits on 1/2 acre, has five total rooms, two baths, spacious living and family rooms with cathedral ceilings, and to top it off, has been completely remodeled with refinished hardwood floors, new paint, remodeled bathrooms and a brand new kitchen with granite counters and new appliances.

If you need time to qualify for a mortgage but don’t want to waste your money on rent, this is a great property. Through our lease to own program, you’ll be able to lock in the price of this home today and give you the time to fix any credit dings you might have.

The video tour and more details are below:

12958 NW Holly Rd.

Bremerton, WA 98312

3 bedrooms (+2 bonus rooms)

2 baths

2400 Sq. Ft.

20,908 sq. ft. lot size (about 1/2 acre)

Built 1966

To qualify, you need:

$5000 upfront option fee (100% applies towards your purchase)

$1395 monthly payments ($200 of each payment applies towards purchase)

$279,000 purchase price in 12 months or extend for a 2nd year

If you have more money to put down, you can lower your monthly payment.

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Are You Ready for a Lease to Own? Some Questions to Consider

Mike Sumsky — Sat, 06 Mar 2010 18:23:01 +0000

I get asked on a regular basis what it takes to qualify for a lease option. I know for many of you, the thought of throwing away money towards rent and abiding by the ‘rules’ of your landlord is painful. ”Don’t paint the walls or have a bbq grill on your porch!” So I’m sure you’re anxious to take the next step towards home ownership and are interested in jumping into a lease to own. Great, I want to help you get there, but first I want you to ask yourself a few questions to see if you’re ready.

Do I have a STRONG DESIRE to WORK on becoming a homeowner?

Cleaning up credit dings, or saving up for a down payment is hard work, make no mistake about it. You have to be so fed up with renting that you’re willing to work on the things that are preventing you from getting a loan. It will require sacrifice to stick to a budget, pay down debt and build up a savings. You may have to revisit some credit demons of the past to clear them from your credit report, and you may have to work some overtime or get a second job to make it happen. There are ways that we can help with this, but it takes commitment.

Can you show income that is 3x the monthly payment amount?

As a rule of thumb, most lenders will want to see that your gross income is at least 3x what the monthly payment on the house is. Also, they want to see a track record of you making the payment on-time during your lease. So, we need to follow the same guideline for the lease option. You may be able to afford the $1200/mo payment on an income of $2600/mo, but a lender would only qualify you for about an $866/mo payment in the future when you go to get a loan. That would be an unpleasant surprise and we don’t want to see that happen. Our entire goal is to set you up for success, plus, having the extra income is what you’ll need to pay down extra debt and save up additional money for a down payment. The average monthly payment on most of our lease option homes is between $1000-1500/mo. Therefore a total gross household income (before taxes) of $3000/mo or more puts you in good position to qualify for our program.

Do you have money available for to pay the upfront option consideration?

To ultimately qualify for an FHA loan, you’ll have to accumulate a 3.5% down payment on the house. We want you to get started with about 1 or 2% upfront when you start the lease and we help you to accumulate the rest through the monthly purchase credits that we offer. With our ’sweat equity’ homes, you can expect the lower end of that range, and on the move-in ready homes, expect the higher end of that range. If you don’t have money for an upfront payment, start saving now. We even give you the ability to earn cash (up to $2500) by referring buyers to the properties that we advertise, so you can save up even faster.

Have you started the process towards building good credit history?

Credit is one of those things that can be hurt in an instant, and can take months (or years) to clean up. Having derogatory marks on your credit does not disqualify you from a lease option (that’s what lease options are for), but we would like to see that you’ve already started to show a recent history of turning things around. In other words, if you are currently 30,60 or 90 days late with any of your debts, we’d want to see you catch up the payments on those obligations and start making on-time payments again before asking you to put down money on one of our homes. If you haven’t had your credit pulled in a while, I’m in the process of creating a video that I’ll post which will show you had to pull your own free report online without having to sign up for a paid credit monitoring service, and without the inquiry showing up on your credit history. Stay tuned.

So, what happens if you’ve gone through the questions and you’re not quite ready? That’s ok, there’s not a big rush. Just make the commitment to yourself that you’ll start chipping away at the challenges that you have and by all means, let me know if you need some guidance on where to start. That’s what I’m here for. Also, keep an eye on this blog and our Facebook fan page for tips on preparing for home ownership.

If you’re ready to go right now then let’s make it happen. You can see our current homes available on lease option at our website or tell us what you want if you haven’t already done so. If you have any other questions or comments about qualifying for a lease option, feel free to submit a comment below.

Mike

P.S. – I have lots of big things in store for you in the future, so to stay in touch, make sure you add us to Facebook (scroll up and check the sidebar on the right).

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Action Required by March 5th – HUD Proposing to End Seller Financing

Mike Sumsky — Tue, 02 Mar 2010 21:44:01 +0000

The following is extremely important! HUD has proposed to eliminate seller financing unless the seller lives in the home or becomes a licensed mortgage originator. This affects all homeowners and homebuyers (even if you’re not an investor) because it restricts one of the most important tools that a seller and buyer have to create win-win transactions, and can further hurt property values and chances for a recovery.

How YOU can help:

Real estate investors, home buyers and home owners across the country need to go on record with HUD on this issue. Please review the proposed law and submit your comments to HUD. We have until March 5th (extended due to public response) to flood this system with comments.

Follow these simple steps:

Visit www.regulations.gov. Select document type “Proposed Rules” then as keyword enter “FR–5271–P–01″ or “safe mortgage” and search (or use direct links below)
Review document as you need
On the right of the next screen, click on “submit comment”
Complete the form providing required info, your comments and submit

Or use these direct links:

FR–5271–P–01

SAFE Mortgage Licensing Act:

HUD Responsibilities Under the SAFE Act

(Document ID HUD-2009-0155-0001)

What do you say?

Say what you feel, but say it politely! The message should include that you would like the definitions in the proposed rules to be changed so that sellers can originate and service loans on any property they own, whether it’s a principal residence or not.

Make your voice heard!

Mike Sumsky

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Interested in Bank-Owned Lease Option Home?

Mike Sumsky — Sat, 27 Feb 2010 02:05:43 +0000

I had a quick thought today and was hoping to get your opinion. As you’ve probably heard on the news, there are a lot of bank-owned homes on the market right now, and investors are buying them cheap….well below assessed value. I know, because that’s what we’re doing as well.

The problem is that most of these homes require a cash buyer or someone who is well-qualified for a loan, which means that if you have some credit dings, you’re out of luck in taking advantage of the incredible opportunity now….which brings me to my thought.

I’m interested in working with a few people who would like to do a ‘lease to own’ on homes that we buy cheap from the banks. Most of them will require some fixup (anything from carpet and paint, to a complete remodel), but you’d benefit by getting a great price.

What I’d like to know is, would you be interested in leasing to own a house that you can put in some ’sweat equity’? I’d still need a small down payment, but it would be much less than we normally charge.

If you’re interested, Fill Out Our Form and tell us what kind of property you’re looking for. In the last comment box, mention that you’re “Interested in a Bank-Owned Lease Option Home”. Also, let me know what type of fixup work you’re willing to do, for instance:

- just cosmetic fixup (carpet/paint/cleaning)
- intermediate fixup (kitchen/bath remodeling)
- advanced fixup (roof replacement/structural/electrical work etc)

I’m trying to gauge interest, and I can only have the ability to work with a few people, so if you think this might be something you’d like to do, Fill Out Our Form

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