HomeApproval Can Be Life-Changing.
But It Is Not for Everyone.
HomeApproval was created for people who have the ability to move forward financially, but something in their credit or mortgage profile is keeping them from obtaining a traditional mortgage today.
This is not a no-money-down program.You must have the funds to make it happen.
To move forward, you must be prepared for the money required for your transaction, including your required down payment, closing costs not covered by the seller, your first month's HomeApproval payment paid at closing, and any reserves required for your credit profile.
Reserves are not money you hand over at closing. They are funds that must still be available after closing when required.
If you do not have the required funds,HomeApproval is not the right path for you today.
But if you have the income, have the funds, and are prepared to follow an Approval Strategy, something in your credit history does not necessarily have to keep your family waiting indefinitely for homeownership.
For the right family,this can be life-changing.
You do not need to guess.Use the calculator to receive an estimate.
Use the HomeApproval CalculatorThey Paid the Rent.
The Mortgage Still Wasn't Paid.
In the last couple of months, two families came to us because the homes they had been faithfully paying rent on ended up in foreclosure.
They had made their rent payments.
Month after month.
They had done what they were supposed to do.
Think about that for a minute.
You can make your payment on time. You can take care of the property. Your children can have their rooms. You can build your routine around that neighborhood. You can start calling that place home.
And if you are only the renter, somebody else's financial decision can still put your family in a position where you may have to leave.
Paying faithfully matters.But paying rent is not the sameas having ownership rights.
She Made the Payments.
And Still Had to Leave.
Earlier this year, one of our clients closed with us after she had already been through another type of rental program involving a new-construction home.
She moved into the home. She made her payments. She believed she was working toward the day when the home would become hers.
But when the contract period ended, her credit scores had not increased enough.
So the program ended.
And she had to move out.
She made the payments.She still did not get the home.
The money she had paid during that period did not create the ownership outcome she had been working toward.
That is why we do not believe a buyer should look at the words "rent-to-own" or "lease-to-own" and assume every program is structured the same way.
The name of the program is not what protects you.The structure of the agreement is what matters.
Show Me the DifferenceYou Are Not Just Renting
And Hoping Your Credit Gets Better.
HomeApproval is a homeownership pathway for qualified buyers that uses FHA-insured financing. It is designed for buyers who cannot complete a traditional mortgage approval today but may be able to complete the FHA loan assumption later.
With HomeApproval, the property purchase closes first. The seller, builder, or manufactured-home dealer is paid at closing. You then move into the property under the Homebuyer Agreement.
The Homebuyer Agreement grants defined Ownership Rights, subject to the terms of that agreement and the absence of an Event of Default.
That does not mean fee-simple title is transferred to you on day one. It means you are entering a structure that gives you defined contractual ownership rights while you work toward the FHA loan assumption.
You are not moving in to wait and see.You are moving in with a plan.
Before you reach that point, we have already reviewed the reason traditional financing is not available today. That becomes the basis of your Approval Strategy.
Here Is How
HomeApproval Works.
We review your complete situation and determine whether HomeApproval may be a fit. If it is, we explain what must happen next and move you into the home-selection process.
You work with your real estate agent to choose an eligible home that fits the program and your approved price range.
You execute the Homebuyer Agreement and provide the funds required for the transaction, including the required down payment, first month's HomeApproval payment, and closing costs not covered by the seller.
Once the home is under contract, plan on approximately 30 to 45 days for the purchase and closing process. The seller is paid at closing, and you move into the home through HomeApproval.
While living in the home, you complete the Approval Strategy established for your specific situation and the steps required to qualify for the FHA loan assumption.
Once you satisfy the qualification requirements, you complete the FHA loan assumption and transition into permanent homeownership.
You Need to Know
What You May Have to Bring.
HomeApproval is not a no-money-down program. If the program fits your situation, you need to be prepared for the money required to close.
The seller may contribute up to 6% of the purchase price toward eligible closing costs, subject to the actual eligible costs and program requirements. Seller contributions do not replace the required down payment, the first month's HomeApproval payment, or required reserves.
Reserves are not money you pay at closing. They are funds that must still be available after closing. The reserve estimate is tied to the credit profile and can be higher when an exception or property-specific requirement applies.
You do not need to guess.Use the calculator to receive an estimate.
See What the Numbers
May Look Like for You.
Use the calculator to estimate the funds you may need for HomeApproval, including the down payment, closing costs, program fees, first month's HomeApproval payment, and any reserves that may apply to your credit profile.
Estimated HomeApproval Funds
Change the purchase price, credit-score range, and seller contribution to see the estimate update.
These figures are estimates for planning only. Actual interest rate, taxes, insurance, title charges, escrow requirements, prepaid items, seller contributions, property-specific charges, program requirements, exception requirements, and final closing figures can change the amount required.
What Does
"Ownership Rights" Mean?
This is where we need to be very clear, because "ownership rights" and "title" are not the same thing.
The simple explanation
- The property purchase closes before you move in.
- The seller is paid at closing.
- You enter into the Homebuyer Agreement.
- The Homebuyer Agreement grants defined Ownership Rights while the agreement remains in good standing.
- Fee-simple title is not transferred to you on day one.
- You must follow the Homebuyer Agreement, make the required payments, and avoid an Event of Default.
- When you later satisfy the qualification requirements, you complete the FHA loan assumption and transition into permanent homeownership.
The protection is not based on a slogan.It is based on the rights and obligations written into the agreement.
This is also why we will not tell you, "Just make the payment and nobody can ever take the home." The agreement contains responsibilities beyond simply making the monthly payment. We want you to understand the structure before you commit to it.
You Move In
With an Approval Strategy.
Traditional mortgage approval is not available today for a reason. Maybe it is credit utilization. Maybe it is a recent credit event. Maybe it is debt. Maybe it is documentation. Maybe the file needs time.
We identify the issue before you reach this point.
Then we establish what needs to change.
That becomes your Approval Strategy.
The goal is not:"Hopefully my credit gets better."
The goal is:"Here is what stands between me and the FHA assumption. Now I execute the plan."
Homeownership is not automatic. You must complete the required qualification process and satisfy the program and FHA assumption requirements. The point of the strategy is to make that destination clear from the beginning.
Questions You Should
Know the Answers To.
If your question is answered here, our team will refer you back to this page rather than repeat the same explanation by phone. We would rather spend that time evaluating your actual file.
Is HomeApproval the same as a regular rent-to-own program?
No. HomeApproval uses a Homebuyer Agreement and a purchase transaction that closes before you move in. The agreement grants defined Ownership Rights, subject to its terms. You then work toward qualifying for the FHA loan assumption.
Does HomeApproval use FHA financing?
Yes. The HomeApproval structure uses FHA-insured financing, and the goal is for the qualified Homebuyer to complete the FHA loan assumption.
Do I own the home on day one?
You receive defined Ownership Rights under the Homebuyer Agreement from the beginning of the agreement, subject to its terms and no Event of Default. Fee-simple title is not transferred to you on day one.
Who buys the property first?
The property purchase closes through the HomeApproval structure. The seller, builder, or manufactured-home dealer is paid at that closing. You then occupy the property under the Homebuyer Agreement while working toward the FHA assumption.
Does the seller have to wait for me to qualify later before getting paid?
No. The seller is paid when the property purchase closes. Your later qualification and FHA assumption occur after that transaction.
How long does it take before I can move in?
Once the home is under contract, plan on approximately 30 to 45 days for the purchase and closing process. This is a real estate transaction with title, insurance, closing, and program requirements. It is not an instant rental move-in.
How much down payment do I need?
The HomeApproval calculator estimates a 3.5% required contribution. Your exact required funds depend on the purchase price, actual closing costs, seller contribution, property, and final transaction figures.
Can the seller help with closing costs?
The calculator allows seller contributions up to 6% of the purchase price toward eligible closing costs, subject to actual eligible costs and program requirements. Seller contributions cannot replace the required down payment, the first month's HomeApproval payment, or required reserves.
What HomeApproval program costs are included in the calculator?
The calculator includes the HomeApproval Program Underwriting/Processing Fee, applicable service and setup fees, and the Homeownership Agreement Management Fee. It also shows the first month's HomeApproval payment separately because that payment is due at closing but is not a closing cost or program fee.
What are reserves?
Reserves are funds that remain available after closing. They are not paid to the seller, lender, or program at closing. The amount can depend on your credit profile, property type, and any exception requirements.
Why is the calculator only an estimate?
Taxes, insurance, escrow amounts, title charges, prepaid items, interest rate, actual seller contribution, property-specific expenses, exception requirements, and final closing figures can change. The calculator is designed to help you plan, not replace final disclosures.
Can I use my own Realtor?
Yes. Your real estate agent can help you locate the home and handle the real estate side of the transaction. Mortgage and HomeApproval qualification questions should be handled by the M.A.P. team.
Can I choose the home I want?
You choose the home, but the property must meet the program and transaction requirements and fit within the approved price range and structure for your file.
What happens after I move in?
You make the required HomeApproval payments, comply with the Homebuyer Agreement, and execute the Approval Strategy established for your file while working toward the FHA loan assumption.
What is the Approval Strategy?
It is the specific plan based on the reason you cannot obtain the traditional mortgage today. The strategy identifies what needs to change, what you need to do, and what we are working toward before the FHA assumption can be completed.
What if my credit score does not improve immediately?
HomeApproval is not based on a promise that a credit score will jump quickly. Your file is evaluated before you move forward, and the Approval Strategy is based on the actual issues preventing approval. You still must ultimately satisfy the assumption requirements.
Am I guaranteed to qualify for the FHA assumption later?
No. Homeownership is not automatic. You must satisfy the qualification requirements in effect for the assumption and comply with the Homebuyer Agreement.
Can I lose my rights if I make the monthly payment?
The Homebuyer Agreement contains obligations beyond the monthly payment. An Event of Default can affect your rights. That is why we want you to read and understand the agreement, not rely on a simplified promise such as "just make the payment and everything is guaranteed."
How do I find out whether HomeApproval fits my situation?
Read this page, run the calculator, then complete the M.A.P. mortgage review. We evaluate your actual file and tell you whether HomeApproval appears to be a viable path and what the next step is.
Now You Know
How It Actually Works.
You know why structure matters. You know what Ownership Rights mean. You know the money you may need. You know the purchase takes time. You know you will have an Approval Strategy. And you know the FHA assumption is not automatic.
The only question left is:Does HomeApproval fit your situation?