Howard Brummel is a man who can think outside of the box. This local real estate investor has found a way to put people into houses that they love even when they would not be able to get traditional financing because of credit or income verification issues. Howard, and other investors like him, offer their houses (he has over 40 right now to choose from) for sale through the very popular Lease/Purchase program. This method of selling a house is proving to be quite popular with the tighter restrictions that mortgage companies are putting on their borrowers now.
HERES HOW IT WORKS:
A buyer has some credit issues but needs a house to live in now. Instead of the traditional 10% down on a house, Howard only requires an initial 3 - 5% down. They have 1 year to clean up their credit while they pay rent on the house as if they were leasing it. As they make their payments on time, they are establishing a record of being able to make payments on the house for the future lender to see.
If they buy the house within the first 3 months, 100% of their on-time rent is credited towards the final purchase price of the house. If they close within 4-6 months, it's 75%. 7-9 months is 50% and 10-12 months is 25% rent credit. After 12 months, 10% of their rent is credited. By credit, I mean that that percentage of their rent will go, along with the down payment, towards to purchase price of the house.
A buyer can know that at least some portion of his rent is working towards the purchase price of the house. He is also buying time to work towards establishing better credit so that he will qualify for traditional financing and lower interest rates.
To read more about Howard's Lease/Purchase plan, you can visit his site by clicking HERE. You can also reach him at 770-591-9492.
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