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Cove Financial Group based in California, has developed the Mortgage Alternative Program (MAP) to help those who are having difficulty financing a home.
Pre-Qualification
At Cove, we are looking for customers who are interested in rebuilding their finances after having a recent setback We review your entire credit history-- not just your credit score! In addition, we analyze your ability to make monthly payments, and verify you have the minimum deposit needed for escrow (10%). We can work with you even if you are self-employed, have alternative income documentation. Having a previous bankruptcy, foreclosure, or short sale is not a roadblock! Upon pre-approval, we advise you of the maximum purchase price for which you qualify.
Choosing Your Home
Working with a realtor of your choice, or one of Cove's Preferred Realtor Program members, you select the house you wish to buy and that qualifies within your pre-approval amount. Cove will work with you to determine the appropriate price, based on market conditions and leveraging our purchasing power and expertise! Cove will then work with your realtor to purchase the home. You enter into a purchase agreement and a lease agreement with Cove and have up to 6 years to close the purchase agreement escrow--when your credit situation improves. You move in right away, and your lease payments are set at a fixed schedule for the entire six years! (see example of Lease payment schedule).
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Closing Your Purchase Agreement in the Future
When you are ready, up to six years from the original transaction date, and you qualify again for a traditional mortgage, you simply inform Cove you would like to close your purchase agreement and assume ownership of the house. Your purchase price is pre-determined and set at a fixed schedule from the original transaction date and price. You can close escrow any time during the 6 years without any pre-payment penalty. Any appreciation on the house is yours to keep. Cove will help you understand what you will need to do in order to qualify for a standard mortgage during the six year period. If for any reason you need to cancel the transaction, you simply inform Cove and you will be returned a 7% portion of your initial deposit funds (Cove will retain 3% as a cancellation fee).
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