Cove Financial Group, Inc. is owned and managed by a team of seasoned executives from the financial and residential real estate industries. COVE executives have provided financing to thousands of Americans and are keenly aware of the challenges presented by today’s residential real estate market. COVE developed its mortgage alternative program, which we call the “MAP”, because it believes Americans deserve to have stability and certainty in where they are going to live and raise their families. COVE and its founders are committed to “transforming home ownership” and helping families again realize the American dream of owning a home. COVE’s core values are transparency, customer-focus, integrity, respect and honesty. COVE is not a mortgage broker, mortgage banker, real estate agent or real estate broker. However, COVE works with reputable licensed real estate professionals and lenders in the industry in connection with the MAP. All real estate documents and contracts utilized by COVE in the states in which it offers the MAP have been reviewed for compliance with applicable state consumer and real estate laws.
No. The Mortgage Alternative Program is an alternative to rent to own or lease to own programs. Under the MAP, COVE agrees to sell the property to you in the future under a standardized purchase and sale agreement (the “Purchase Agreement”) that fixes your purchase price. You have six years to complete the purchase through a close of escrow. Until the close of escrow, you lease the property from COVE and take immediate occupancy of the property as a tenant.
At the time you enter into the Purchase Agreement with COVE, you will be required to deposit a portion of the purchase price with a nationwide escrow company, which is also one of the largest title insurance companies in the nation. At the close of escrow, your deposit will be applied to the purchase price of the property. The escrow agent will hold the deposit in an account at an FDIC-insured bank. You can check on the status of your escrow and your deposit at any time during the term of your Purchase Agreement with COVE, and you will receive monthly account statements.
No. As part of the MAP, you enter into two contracts with COVE: the Purchase Agreement, under which you can close on the purchase of your home within the next six years, and a standardized lease agreement (the “Lease Agreement”) for the same residence. The contracts are both executed at the same time. Within the following six years, if you close on the purchase of the property you will be obtaining financing from a lender. At that time you will be making interest payments according to the mortgage agreement between you and your lender.
You are involved in the single family residence selection process in much the same manner as if you were buying the house on your own. After you select the property you want to live in, COVE works with you and your real estate agent on the offer and any counter offers. You and COVE inspect the home together before COVE purchases the property and your lease of the house becomes effective.
COVE does not employ real estate agents or provide those services. COVE works with unaffiliated agents who are entitled to traditionally negotiated commissions.
Your monthly lease payment will be comparable to rentals in similar neighborhoods for single family homes of similar value. Your monthly lease payments will be specified in the Lease Agreement. Lease payments will increase slightly on a fixed schedule for the six-year term.
Since every residence and neighborhood is unique, it would be best to call COVE at (877) 994-COVE with the address of a property you are interested in and COVE will provide you an estimated payment schedule, at no cost or obligation.
No. Because no portion of your monthly lease payments involve the direct payment of mortgage interest or real estate taxes, no portion of your lease payments will be deductible for income tax purposes as mortgage interest or property tax payments.
If you (or your family) experience a significant and unforeseen life changing event, you have the right to request a termination of the purchase by giving COVE 90-days advance notice of the proposed termination date. If COVE consents to the termination, the Purchase Agreement and Lease Agreement will both be terminated and COVE will retain from your deposit an amount equal to 3% of the purchase price as liquidated damages. Any unpaid lease payments or repairs to the house will also be deducted from your deposit. The remaining amount of your deposit will be refunded to you, without interest.
You will never be required to pay more for your home than you agreed to in the Purchase Agreement. Any appreciation above the fixed schedule you originally agreed to is yours to keep, if you choose to sell the home. For example, if the Purchase Agreement fixes the purchase price at $275,000 but the house is worth $350,000 when you elect to close escrow, the $75,000 in appreciation will be paid to you.
The agreed purchase price will not be adjusted downward if the house depreciates in value before you close escrow. For example, if the Purchase Agreement fixes the purchase price at $275,000 but the house is worth $250,000 when you elect to close escrow, the depreciation is yours.
You are, just as if you owned the property. Under the Lease Agreement, you agree to be responsible for ongoing maintenance of the property. COVE assigns a local property manager and conducts annual inspections.
During the approval and closing process you will be assigned a transaction coordinator to work with you every step of the way. Once you have moved into your home, you will be given a toll-free number to the property manager who will provide you with information or answer any questions.
If requested, we will introduce you to one of our trusted unaffiliated mortgage providers. Although we are not a mortgage lender, broker, or mortgage banker, we will assist you in working with mortgage providers in qualifying for a mortgage. Remember, the program is designed for families who want to and should be able to get traditional mortgages to close on their escrow, so it is in everyone’s best interest to see you get a suitable mortgage.
As long as you are current on your lease payments and in compliance with your other agreements with us, you cannot be evicted from the house. However, if you cannot qualify for a mortgage within the six-year escrow period, you will be required to vacate the house and COVE will retain ownership.
There is no catch. Under the MAP, COVE seeks to purchase the home of your choosing from it's current owner after you have entered into the Purchase Agreement and the Lease Agreement. The Purchase Agreement and the Lease Agreement are both conditioned on COVE acquiring the property from the current owner. Unless COVE initially purchases the house, you pay nothing going forward and any deposits and fees previously paid to COVE will be returned to you.
COVE believes banks and mortgage companies have made it unfairly difficult for most potential homeowners to qualify for financing. COVE wants to help families who have experienced life events by offering them another chance to own a home sooner than the five years it might take for their credit to be repaired. If you have the funds necessary to cover at least 5% Deposit and can show you can meet the monthly lease payments, COVE believes you should be able to immediately occupy and contract to purchase the house of your choosing. In return for acquiring the house and holding it subject to your purchase rights for up to six years, you pay COVE an approximate 3% transaction fee. Please note that your purchase price does increase incrementally at a fixed percentage per year for the duration of the purchase agreement, depending on which MAP option you choose. COVE also profits if, and to the extent, the lease payments it receives exceed its expenses in carrying the house for that time.
Call COVE at (877) 994-COVE and we can pre-qualify you over the phone, with no cost or obligation of any kind.