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Frequently Asked Questions

Frequently Asked Questions

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It’s pretty simple

  • An acquisition-premium (much like a down payment) of 10%* or more on purchases, or home-equity of 15%* or more for Sell & Stay customers.  *May be higher based on other qualifying criteria
  • Good (but not perfect) credit, with a minimum 580 credit score.
  • Primary residence or second home occupancy.
  • No felony convictions no active felony charges according to the Program Guidelines.
  • A property that meets Program criteria: It must be in a approved geographic market (state), be typical size and value for the neighborhood, and be in good structural condition

The good news is we don’t care about many of the real-life challenges that disqualify people for  a mortgage

No income or employment documentation is required,

No debt ratio qualifications,

No sourcing or verification of funds,

No seasoning on derogatory credit,

No restriction on the number of properties owned,

Foreign Nationals and individuals with ITINs are accepted.

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We accept most typical single-family homes and condos. The properties must meet certain criteria for safety and marketability, and they must be in an approved market. Most properties that are eligible for a mortgage – and even some that are not, such as non-warrantable condos- will qualify for REAL.

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The following areas are approved for the REAL Program

State

Counties

CA

Los Angeles, Orange, Riverside, San Bernardino

UT

Davis, Salt Lake, Summit (Park City Only), Tooele,  Utah

 

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REAL Payments are based on a combination of your acquisition-premium and your FICO score. They are slightly higher than a typical mortgage payment, but usually less than a comparable rent payment.

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Since the REAL Program is not a loan, there is no interest rate. Your Program disclosures will include the effective APR ( the relative cost of the Program) to provide you a means of comparing the Program with mortgages or other financing options that may be available to you.

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You must be prepared to make an Acquisition-Premium (similar to a down payment on a mortgage or an upfront payment on a car lease.) The minimum premium-acquisition is 10% of the gross purchase price of the home.

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Yes.

  • There is a $25 application fee for each applicant (there can be as many as 4), and a $10 approval fee for any home occupants that are over 18 and not on the application.
  • There is also a 2.5% fee to use the REAL program (slightly less than the fees you would pay on a traditional mortgage).
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Title to the property is held in the REAL Homeownership Trust during the term of the Program Agreement (the lease).

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The Program Agreement is valid for two years with an option to extend it two additional years.

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At any time during the term of the Program Agreement you can pay the Payoff Balance: with a a mortgage, by selling the home, or paying cash. There are no penalties for early payoff.

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REAL comes with a two year extension option, or you can decide to sell the home to pay the Payoff Balance and earn any net appreciation value. You could alternatively enter into a new Program Agreement with us.

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Yes, absolutely. However, they must be properly licensed and in good standing.

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The REAL Program allows you to make approved repairs and improvements to the home. We even have an option of
including a portion of the costs into the Program Basis.

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Yes, but we do have some rules:

  • You must continue to occupy the home according to the terms of the Program Agreement.
  • No short term rentals are allowed (less than six months).
  • No participation in nightly rentals are allowed (like Airbnb).
  • You are responsible for collecting any rental payments owed.
  • You are responsible for the tenants adherence to Program rules/restrictions.
  • All occupants of the home are subject to background and other checks.
  • We must approve all occupants in writing.
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The Program is intended to provide participants rights similar to traditional homeownership; which includes the ability to have pets and smoke. Costs associated with damage or adverse impacts to the home would be your responsibility.

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We are committed to work with Program participants to ensure all reasonable efforts are made to accommodate
extraordinary circumstances that may impact the ability to make monthly payments. However, Residents that fail to make their Monthly Payment Amounts are at risk of being evicted from the home and could lose their Acquisition-Premium, their right to purchase the property, and any net-appreciation value.

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As long as all payments are current and the terms of the Program Agreement are met, the home cannot be sold without your permission.

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Yes. At least annually, all homes are subject to an interior inspection to ensure the property is being maintained according to the terms of the Program Agreement. Some cities/towns also required we inspect certain safety equipment such as smoke detectors. All inspections will be scheduled with sufficient prior to notice to be considerate of your privacy.

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We do. The costs associated taxes and insurance are paid by Seashine from amounts included your Monthly Payment
Amount.

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Renters insurance is not required, however we strongly suggest you obtain a policy to ensure your personal contents are protected from loss, and that you have sufficient personal liability coverage.

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Program participants are responsible for repairs and maintenance to the home.

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No, unlike other lease-to-own and shared appreciation programs, REAL customers keep 100% of the net-appreciation.

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REAL offers many of the same benefits as a mortgage. It lets you get into the home you want; own the home in the future at a fixed price; and gives you the right to sell the home and keep the difference between what is owed on it, and the sales price.

  • REAL payments are slightly higher than a typical mortgage payment, but usually less than a comparable rent payment.
  • REAL’s Acquisition-Premium payment and fees are roughly in line with what most conventional mortgage lenders require.
  • REAL is a lease. A trust buys and holds the title to the properties.
  • REAL lease payments do not create equity (although home price appreciation does).
  • REAL has different, less stringent, set of underwriting criteria.
  • If home prices decline, the most that a consumer would be responsible for is the amount of their Acquisition-Premium, not the entire underwater amount.
  • A default of the Program Agreement results in an eviction rather than a prolonged foreclosure action.
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REAL is designed for consumers who have the means to make a significant contribution to the transactions, at least 10%. The Program allows Program Basis in approved geographic areas (states) up to $2 Million . REAL lets the consumer keep all of the net appreciation, and we don’t qualify our consumers using the same underwriting requirements as many of the other programs.

  • Most lease-to-own programs require the customer to buy from the owner’s inventory. Also, many of them are
    designed for low income consumers.
  • Shared equity programs are for consumers who lack the savings for a down payment but who otherwise could qualify for a traditional mortgage. The tradeoff in return for no down payment is that they must agree to share the upside of any appreciation.
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