Work For Equity Questions and Answers
What are the qualifications? You must have the ability to complete the repairs such as painting, installing cabinets, minor plumbing, replacing rotten wood, etc. You must also pay rent during this process and have credit and income suitable to acquire some kind of permanent financing at a later date. This doesn’t mean your credit has to be good but it does mean that not everyone will be approved. Once you’re approved for the Work For Equity program, you’re automatically approved for financing when the house is repaired unless your circumstances change due to loss of income or non-payment of your current obligations.
How do I pay for repairs? A list of repairs will be presented to you prior to any commitment from you. These will be the repairs needed. You are encouraged to do more than what’s on the list, but the list must be completed first. You must fund the cost of materials.
How long do I have to get the work completed? The time for repairs will be agreed upon on a case-by-case basis depending on the amount of repairs needed and your personal situation.
When will I be given possession? Possession will be delivered immediately.
We do not have any homes that you can move into with no money or commitment on your part.
Utilities: You will be responsible for turning on utilities in your name. In those cases where the city must inspect first, we’ll handle the details with your assistance.
How much equity will I get? The purchase price will be set up front allowing you more than adequate consideration for your participation. You’ll receive a lot more equity in the home than what your labor would cost.
Who pays for insurance? We’ll insure the dwelling until you become the owner. Our policy will not cover your contents but it will cover any renovations whether paid for by you or us. You should insure your contents and in some cases you may be required to buy some liability insurance.
Who pays for taxes? We’ll pay the property taxes until you purchase the home.
How long will I have to purchase? That’s a case-by-case answer. Some folks purchase right away, others take months. It depends on your ability to get new financing. Sometimes our buyers must live in the home for 6-12 months to show a pattern of prompt rent payments to the lender. Other times the loan process is started while the work is in progress. We’ll look at what your needs are and structure financing to suit. You’ll know all these answers up front.
What if I do the repairs and can’t get a loan? Our objective is to sell the home, not rent it long term. If you live up to your agreement, complete the repairs, and pay your bills on time, you will eventually be approved for permanent financing. Again, all these details will be discussed up front and agreed upon, in writing by both parties. Since we own the homes, we’re very flexible and willing to make it work.
If there’s a big problem, we’ll know up front. Of course, we can’t be responsible for your financial situation after you take possession of the house. A loss of income or future credit problems can prevent you from qualifying for a loan, but even then we’ll help you work it out as long as you pay the rent and keep your promises.
What do I do next? If you haven’t already, please fill out an application and fax it to us at (678) 836-1963.
