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Divorcing Buyers

After a divorce, one or both of the parties can have problems buying a home. Their household income and cash assets are greatly reduced and, in many cases, their credit is damaged. They are often reluctant to use all the cash from their settlement for a down payment because they would like to keep something in the bank for security.

They would both like to stay in familiar surroundings, especially if there are children involved but, with their purchasing power reduced by the divorce settlement, they are often forced to move out of the area to buy or stay nearby and rent.

Moving out of the area can be better financially, but adds to the emotional disorientation. Staying in the area and renting makes life easier for all concerned, but at considerable financial cost. Their already-reduced income is further impacted by not getting the home ownership tax write-offs. At a time when they need to jump start their financial future, they are severely hampered in acquiring most important component.

The Equity Share Program can provide down payment assistance or monthly payment assistance that can compensate for damaged credit and/or make up for lost assets. This will enable the divorced buyer to get back onto the home ownership band wagon, save thousands of dollars each year in tax write-offs and jump-start their financial future by building tens of thousands of dollars in equity.

Relocating Buyers

Whether they are moving across town to get closer to work or moving across the country to advance their career, relocating buyers can experience something called “equity gap”.

When they sell their home in Phoenix for $200,000 and discover that a comparable home in San Diego will cost $600,000, they may find themselves very short on down payment—that’s “equity gap”. Many relocating buyers are forced to chose between buying the home that is comparable to what they are used to and being “house poor” because their payment is so high, or getting a payment they are comfortable with but having to settle for a home or an area that is less than what they wanted.

The Equity Share program can provide additional down payment money to bridge the “equity gap”, or monthly payment assistance for as much as 20% of the total house payment, and enable relocating buyers to purchase a house that feels like home and still have payments they can live with.

Move-Up Buyers

If home ownership is the “American Dream.” then “stepping-up” to a better home is “Part 2” of that dream. It's the natural course of things—buy your first home, build up some equity, and then, use that equity for a down payment on a bigger home. It’s usually just a matter of waiting until you have enough equity built-up to make the move.

Sometimes circumstances can force you to face “stepping-up” sooner, rather than later, because you want a better school district for your kids, more room for your growing family, or, you just can’t stand that 2-hour commute anymore. And, sometimes you have to get out of your condo, and into a single-family home, with a yard, so you can start a family, and get that Golden Retriever you’ve always wanted.

But, there can be a gap between the equity you have in your current home, and the down payment you need to make the numbers work to buy the home you want. You might even be able to qualify for the financing on the “step-up” home, but you're not comfortable with the monthly payment.

The Equity Share Group’s Down Payment Assistance Program can provide the extra cash you need to close the “equity gap,” and make that “step-up” purchase affordable for you—now!

Investment Property Buyers

Recent record gains in real estate values have encouraged many homeowners to venture into the world of real estate investment as a way to build assets, get some tax benefits and supplement their depleted retirement funds.

Typically, a rental buyer refinances his home and takes some of the equity out for the down payment, or he simply buys a new home for himself and keeps his old home for a rental. Many people prefer the latter since it offers the satisfaction of fulfilling a financial goal and a lifestyle goal at the same time.

Most rental owners want to avoid "negative cash flow" , so they have to put enough money down to have their rental house payment roughly match what they can get in rent. At the same time, they have to leave enough equity in their own home to make their monthly payments affordable. Often times- when you consider the large amount of money needed "would be" rental buyers come up short on equity and have to abandon their plans.

However, the Equity Share program can often provide the extra cash needed to supplement the down payment on a rental property, or monthly payment assistance, so the cash flow works and the rental buyer can have two properties building equity for their future.

Self-Employed Buyers

Being self-employed certainly has its advantages. On average, self-employed people earn more than those who receive a W-2, but their tax returns usually tell a different story. That’s normally considered an advantage—but not when it comes to qualifying for a home loan.

Since a self-employed buyer doesn’t receive W-2’s from an employer, the only way a lender can verify his income for loan qualification is his tax return. Unfortunately, because of all the write-offs that come with being self-employed, his tax return often isn’t much help. Lenders have long understood this, which is why they created the “stated” loan. If the self-employed buyer’s credit is good enough he can simply “state” his income, rather than having to verify it.

Of course, the problem arises when his credit isn’t quite good enough. If he has 20% saved up for his down payment he should be fine, but if he only has 10% or maybe he wants to get 100% financing, his credit has to be pretty good or he can’t qualify for the home he wants to buy. He may have to settle for something quite a bit less.

However, an additional 10% down payment from the Equity Share program, or monthly payment assistance of as much as 20% of the monthly payment, will usually be enough to tip the scales and make up for the credit short-fall and enable him to purchase the home he wants and that he really can afford.

Lease Option Buyers

The Equity Share Group Lease Option Program combines a special type of “Lease Option,” with an “Equity Share,” (a unique arrangement between an investor, who provides cash for a down payment, and a buyer who can qualify for a loan) to make it possible for a buyer to purchase a home. A typical Lease Option, which has been around for many years, simply does not work, because it does not allow for the buyer to accumulate enough cash equity to complete the purchase option. How many people do you know who can save $40,000 to $60,000 over a 1 to 2-year period of time?

The Equity Share Group Lease Option Program, however, is structured so that the buyer can accumulate tens of thousands of dollars in equity, to put towards the purchase of the home. The buyer is able to earn equity from their initial “Option Money” deposit, and the rest of the equity comes from sharing 30% to 40% of the property appreciation during the “Lease” period.

Through our “Lease Option Program,” when the time comes to exercise the “Purchase Option,” the “Lease Option” is converted into an “Equity Share,” and the investor provides the additional money needed to guarantee a full 10% down payment.

How the Lease Option Program Works

1. Pre-Qualification
With the help of our mortgage consultant, we determine how much of a monthly Lease-to-Own payment you can comfortably afford.

2. Choose a Home
The Equity Share Group Lease Option Program allows you a wide range of homes to select from, in just about any area you want, unlike conventional Lease Options, where there are only a few homes available.

3. Investor Buys the Home You Choose
Once you have chosen the home that meets your needs, the investor will purchase the home on your behalf, with the agreement that you will move into the property at close of escrow.

4. You Move into Your Home
After the close of escrow, you move into your home, and begin earning equity. You are responsible for the house payment, property taxes, insurance, and all of the normal expenses that come with being a home owner, while earning equity credit on the appreciation of the home, during the 1 to 2-year “Lease Option” agreement.

5. Exercising the Option to Purchase the Home
At the end of the “Lease Option” time period, you will purchase the home, at fair market value, and will have built up thousands of dollars in equity credit for the down payment. If necessary, the investor will convert the “Lease Option” to an “Equity Share” and provide any additional cash needed to ensure that you have at least a 10% down payment.