Seller Financing Through JMJ Real Estate Services, LLC
How Does It Work?
JMJ Real Estate Services, LLC along with our family of companies is proud to provide seller financing to deserving buyers that can provide a large down payment, demonstrate stable income and can prove they have adequate reserves to meet financial obligations. This is not a rent to own program, lease option or land contract. You will have the deed to the home and we will be holding the financing for that home via a Promissory Note. The Promissory Note will be secured by the asset (the House) via a mortgage. Your monthly mortgage payment will be paid to a servicing company that is licensed to receive payments and manage the account on behalf of our company. The financing available will be Dodd-Frank Compliant meaning in general terms, that you must be able to demonstrate that you have adequate financial reserves to pay your monthly living expenses and your housing payment.
This program is specifically designed for buyers who may not currently meet the strict bank guidelines to qualify for a bank loan, but otherwise are responsible individuals that pay their financial obligations in a timely manner.
The Application Process
The application process is a 3 stage process.
Stage 1: We will conduct an initial 5-10 min interview with you over the telephone to determine if you can meet the minimum standards for purchasing the home. Assuming that you do, we will then set up a showing for you to view the home. There is no cost for this.
Stage 2: After viewing the home, if you determine that you like the home and wish to proceed, you will then complete a preliminary application which will take about 10-15 minutes to complete for seller financing for the home. We will take that information and submit it into a software program at www.calltheunderwriter.com to determine your likely hood of being Dodd-Frank Compliant. Www.calltheunderwriter.com is a mortgage loan originator licensed to originate loans in all 50 states. This program has roughly an 85-90 % accuracy rate and will get you to about 90% of being approved. There is no cost for this.
Stage 3: Assuming that your initial application comes back in good standing and you wish to purchase the home, we will then move forward to full underwriting with full documentation. You will be required to pay a non-refundable application fee of $495.00 before we can move forward. We will then complete the formal application process with full documentation that is required to underwrite the loan. Once all documentation is supplied, we will submit all of the documentation for the loan to www.calltheunderwriter.com. They will supply us a response on what additional information may be needed for underwriting approval and Dodd-Frank Compliance, if any, or the application will be denied.
When you are approved, we will then move forward to sign the purchase/sales agreement where you will be required to pay earnest money to be placed into escrow. If the purchase price of the home is under $100,000.00, the earnest money requirement is $500.00, if the purchase price is over $100,000.00 the earnest money requirement is $1,000.00 and if the purchase price is over $200,000.00, the earnest money requirement is $2,000.00. The earnest money will be credited to the purchase of the home at closing. You are welcome to complete your own inspections of the home at your expense before signing the purchase agreement, however, you are purchasing the home in “AS IS” condition. If there is something that comes up on the inspection report that is of a serious safety nature that we missed, we will determine at our sole discretion how that will be addressed on a case by case basis. No survey will be provided by the seller. Please note, once you have signed the purchase/sales agreement and for some reason you do not close on the home, you will forfeit your earnest money as liquidated damages to the seller for time and energy spent working with you through this process. Closing of the home will take place at Metropolitan Title of Indiana.
In addition, you will be required to pay one full year of Home Owner’s Insurance up front which will be paid at closing and placed on the closing statement. We will pay for the Owner’s Title Insurance Policy that goes to you to protect you against a title defect and you will pay for the Lender’s Title Insurance Policy that protects us as the lender if there is a title defect. You will be required to escrow insurance and property taxes into your monthly mortgage payment. This means your monthly mortgage payment will include principal, interest, insurance and taxes (PITI). Property taxes will be pro-rated to the date of closing and paid by the seller as well as the preparation of the Deed. The closing fee and other minor federally mandated fees will be evenly divided between the buyer and seller.
After closing, your loan will be placed with a servicing company that is licensed to service the loan. All communication will be with the servicing company from that point forward.