I live in the Chicago area and there is a company up here called National Home Buyers Alliance. From what I have heard they assist those that do not have the down payment to purchase a home or have credit problems get into a home. They will either secure the financing for you right away or if your credit is not great, you rent for one to two years with part of the rent going toward the downpayment. At the end of one to two years, your mortgage financing will be in place and the home becomes yours. My husband knows a couple of people he has contact at through work that have gone to this company and through their program and have been satisfied. Right now one of my husband's co-workers (who filed BK after us last year) is in the first stages of the process through the above mentioned company. We just found out they were approved on Friday. I am just wondering if anyone out there is familiar with either this company or a company similar in their area and if they had gone through this type of process to get a home?
Here is some (very little) information from the BBB http://www.chicago.bbb.org/report.html?compid=38004788 John
Thanks John, I know. This has been in the update process for a couple of months now. They member of the BBB and not just a company that the BBB has reports on. I keep checking the BBB site once a week to see what is being updated. Funny thing though, the builder that built our last house is not a BBB member, but the BBB reports that they have sent several letters to them requesting information, but our former builder refuses to reply. Probably because their homes are built like s***. The BBB is probably getting complaints from homeowners as we had our own problems with them. Had we not watched the builder build the TH every step of the way, it would have been majorly screwed up!
I didn't go through a company but I DID use the lease-purchase method. I am currently entering the 4th and final year of the lease-purchase on the home I am currently in. It has definitely helped me as my landlord took me at my word and didn't even pull a CR when I initiated the deal 3 years ago. Now, I have about 12K as a downpayment and once I am done my credit repair, I will refinance the existing mortgage and won't even need a downpayment! The mortgage company said that I can refinance instead of purchase if I can prove it's a lease-purchase deal. For those with bad credit, this is DEFINITELY an avenue worth investigating. I couldn't have gotten into a house without the lease-purchase capability. Tom
Tom, Thanks so much for your input. You also provided some information I did not take into consideration. A refi rather than purchase, good info. The reason we are considering this is for the same reasons as you state. By the time we are at the end of the lease term, we will be in a better position credit wise to finance. Thanks again!
SCAM ALERT!!! SCAM ALERT!!! SCAM ALERT!!! I got a call 2 years ago from a woman who had been dutifully allowing this scum company to auto debit her checking account each month. Can't recall the amount right now, but it was several hundred dollars (enough for a small mortgage payment!!!) When I asked her what they were doing for her, she couldn't tell me but they had made it sound as though they were cleaning up her credit and readying her for a house. Well, she got tired of paying and they soon stopped returning her calls. She tried to cancel and asked them to stop debiting her account. They ignored her. (No, she hadn't gone through her bank to stop it when she called me.) She'd been doing this for nearly a year and it just broke my heart to explain to her that she'd been had. They're vultures and scum!!
Rent to own is definately an option but if you do it, make sure the neighborhood, house is one that you are happy with and will want to live in for a while because if you decide not to exercise your option at the end, you lose all your money.
Hope, To my knowledge, they only do business in the Chicago and Kansas City area. Also, I don't believe they advertise to clean credit to purchase a house. Did she actually pick a house to rent to own? It is my understanding that you make out an application just as though you were going to lease any property. Based on your credit they will arrange to get you financed immediately or that you will rent for one to two years and by then have your financing in place. Once you are approved, they ask what area of the city or suburbs you are looking to purchase and give you a referral to a realtor. The realtor shows you houses, you pick the one you want, and they negotiate a price for the house. You rent the house with part of the rent being credited toward the down payment. You actually live in the house, pay the rent, and then have the financing in place at the end of the lease. If this woman was not actually renting a house from them, I think that maybe this might be a different company. Those that my husband knows did not have any credit restoration services performed by them in order to qualify for a mortgage. If I find out different, I will post what I find.
