Florida Mortgage Option That Does Not Source Large Deposits

Florida Mortgage Lenders That Do Not Source Large Deposits

The Florida Mortgage Lenders DreamBuilder program is a unique opportunity in which a purchase transaction is completed by an FHA-eligible government entity that enters into a lease-to-own and long-term Florida purchase agreement, or structured financing agreement, with qualified Homebuyers, locking in the price today, thereby allowing the Homebuyers to purchase the property in the future.

Eligibility

• Primary Residence for Homebuyer(s)
• Purchase – Primary Residence for Homebuyer(s)
• Up to 96.5% LTV
• Full Doc and Alt Income options
• Exceptions may be considered on a case-by-case basis
• Funds do not need to be sourced or seasoned for this loan program.

Down Payment – Credit – DTI

• Pick out your own rent-to-own home that meets FHA guidelines.
• Primary Residence for Homebuyer(s) – Purchase only
• 580+ credit up to 96.5% LTV = {3.5% Downpayment} funds do not have to be sourced.
• 500+ credit up to 90% LTV = {10% Downpayment} funds do not have to be sourced.
• Self-Employed No Tax Returns OK!
• Max Debt To Income (DTI) 60%
• Seller paid closing costs up to 6% OK!

How does the Rent-To-Own work?

With rent-to-own, the Homebuyer does not qualify for traditional FHA mortgage financing, and the funds do not have to be sourced. The DreamBuilder program offers a new and exciting way for the Florida Homebuyer to ultimately purchase a Florida home.
Step 1: Broker submits a fully completed application for a rent-to-own FHA Mortgage for lenders approval review.
• The Florida property address must be identified in the portal if a property has been selected by the Homebuyer(s), otherwise the property address may be identified as “TBD”.
• Qualifying documentation must be uploaded to the loan in the portal. Required documentation includes but is not
limited to income and assets, as well as any supporting credit history documentation (housing, alternative tradelines,
credit event details, etc.), identification, LOEs, etc.
• Note: A review will not be completed until all qualifying documentation is received and confirmed.
Step 2: Once the Homebuyer(s) has selected a property of their choice, the Homebuyer(s) enters into a purchase agreement with the property seller for the selected property.
• The property must meet the DreamBuilder eligibility and guideline requirements.
• The “buyer” portion of the contract MUST identify the Homebuyer’s name(s), in addition to “and/or assigns”.
• The Homebuyer(s) MUST execute the Assignment Addendum to Purchase & Sale Agreement to transfer the contract to the FHA-eligible government entity (the entity purchasing the property on behalf of the Homebuyer(s)).
• Broker to provide the executed contract with all addenda (including Seller’s Disclosure) to Open Mortgage Wholesale.
Step 3: The Homebuyer(s) name will be retained within the portal as the Homebuyer/Tenant, and the borrower on the transaction will be transitioned to the FHA eligible government entity.
• The FHA investment purchase will be identified within your portal pipeline under borrower
Step 4: The subject property appraisal must be ordered, completed, then reviewed and approved to guideline requirements. All conditions related to the property must be addressed and satisfied.
• Open Mortgage Wholesale will order the appraisal on behalf of the Broker/Homebuyer(s). The Homebuyer(s) are
responsible for paying for the appraisal.
Step 5: The Homebuyer(s) execute the Homeownership Agreement and remit all funds for closing to the title company.
Step 6: The purchase transaction is closed at an approved title company.
Step 7: The Homebuyer(s) move into the property and begin their journey toward owning the home!
• The option purchase price reduces with each monthly payment made by the Homebuyer(s).
• All appreciation acquired from the date of closing until the Homebuyer(s) purchases the property belongs to the
Homebuyer(s).
• At any time, the Homebuyer(s) can sell the home, purchase the property from the FHA-eligible government entity, or
Assume the existing FHA loan on the property.