Buying a Home: Your Path to Homeownership with Homes for All
At Casa para Todos, our mission is to help you buy a home despite the challenges posed by conventional lending systems. We understand that getting a home can be a daunting task, especially for those facing credit difficulties. Our dedicated team is here to provide innovative and customized solutions, ensuring that everyone can achieve the dream of homeownership with transparency, ethics, and professionalism. We don't just help you buy homes; we work to create homes where your stories unfold and dreams come true.
Our vision
At Casa para Todos, our vision is to make home ownership accessible to all. We believe that everyone deserves the opportunity to buy a home and build a future in a place they can call their own. Our commitment goes beyond traditional real estate practices. We focus on breaking down barriers and offering customised solutions to meet the unique needs of our clients. Whether you are looking to buy homes in difficult credit situations or seeking advice on the best places to buy a home in Denver, we are here to guide you every step of the way.
Our services
Casa para Todos provides comprehensive services to assist you in purchasing a home. Our services include:
- Personalized Home Buying Assistance: We offer personalized support to navigate the complexities of home buying, especially for those with credit issues.
- Innovative Financing Solutions: Explore alternative financing options tailored to your specific needs and circumstances.
- Market Analysis and Guidance: Gain insight into the best places to buy a home in Denver and other areas, ensuring you make informed decisions.
- Comprehensive Support: From initial consultations to the completion of your purchase, we are with you throughout the entire process.
Our specialty
At Casa para Todos, our specialty is providing unparalleled support to people looking to purchase homes, particularly those facing challenges with conventional lending systems. Here's what sets us apart:
Customized Solutions for Credit Challenges:
We offer specialized services designed to help you overcome credit difficulties and achieve your goal of homeownership. Our team works closely with you to find creative and effective solutions that fit your unique situation.
Expert Market Insights:
We provide detailed market analysis and information to help you discover the best places to buy a home in Denver and the surrounding areas. Our expertise ensures that you make informed decisions based on current market trends and conditions.
Comprehensive Financing Options:
Our team explores various financing options and alternatives to help you get the best terms possible. Whether you need help with unconventional loans or other financial solutions, we are here to guide you.
Personalized Guidance Throughout the Process:
From the initial consultation to the final purchase, we offer personalized support to ensure a smooth and stress-free home-buying experience. Our goal is to make the process as easy and enjoyable as possible.
Dedicated Support for Home Buyers:
If you are looking to buy a home in Denver or surrounding areas in Colorado, we provide specific assistance to help you find the right property in the right neighborhood. Our local experience allows us to offer valuable recommendations and insights specific to the Denver area and throughout Colorado.
Commitment to your success
At Casa para Todos we are committed to your success and satisfaction. We do everything we can to ensure that you find not just a house, but the home of your dreams.
Frequently asked questions
“Subject To” is a way to purchase real estate in which the buyer takes the deed/title of the property while keeping the same previous loan in place in the name of the seller.
“Property is purchased subject to the existing financials” The buyer now has full control of the property along with the responsibilities. This includes payments of the existing mortgage maintaining the property and following regulations in which the property is located.
Is “Subject To” legal?
Yes, it's included in the U.S. Code of Federal Regulations instructions for the HUD-1 closing statement. Lines 203 and 503 are specifically for transactions subject to the existing mortgage.
According to the U.S. Code of Federal Regulation, Title 24, Volume 5, Part 3500, App A (page 396):
"Line 203 is used for cases in which the Borrower is assuming or taking title subject to an existing loan or lien on the property."
"Line 503 is used if the Borrower is assuming or taking title subject to existing liens which are to be deducted from sales price."
Link to the Code of Federal Regulation HUD-1 instructions:
https://www.govinfo.gov/content/pkg/CFR-2012-title24-vol5/pdf/CFR-2012-title24-vol5- part3500-appA.pdf
How do I know my mortgage will be paid on time?
We hire a third-party servicing company to withdraw money from our escrow account and make direct payments to the mortgage. Our servicer can provide notifications if requested.
Our use of a professional third-party servicer shows proof that payments are being made by the buyer when the seller goes to wipe out their Debt-To-Income on this property with any other lender when purchasing a home in the future.
What happens if a payment is missed?
The seller will have a lien position against the property as the second-position lender, through a wraparound mortgage. If the buyer fails to make payments after 90 days, the seller will have the ability to return the property or foreclose, depending on the state.
In this situation, the seller inherits the property and benefits from any loan reduction payments, improvements made to the property, and appreciation the property has had. The seller could then sell the property again for more money if they do not wish to keep it.
Who is responsible for property repairs and maintenance?
After the deed is transferred to the buyer, the buyer is responsible for all repairs and maintenance of the property.
Since the seller's name only remains on the mortgage and the deed changes to the buyer's name, the seller is not responsible for any repairs or maintenance.
The person responsible for any repairs or maintenance is whoever is listed on the deed to the property.
Will this affect my debt-to-income ratio to purchase another property?
For conventional and FHA loans, we prepay one month of a lease in advance and the lender we typically use can remove 75% of the seller's DTI immediately. After 1 year of on-time payments, 100% of the DTI must be removed from the seller's name. All you will need to do is show your lender that on-time payments have been made by us for the past year.
If you have a VA loan, the amount you can purchase on your next home will depend on how much entitlement you have left. If you do not have enough entitlement for your next property, you can use your proceeds from the “Subject To” sale for the down payment needed for your next home.
How does “Subject To” affect my credit?
Since the loan remains in the seller's name when timely payments are made, the seller's credit rating benefits. Timely payments to the lender are reported back to the credit bureau and can significantly help someone looking to improve their credit rating and can save the seller more money in the future to repair their credit.
How long will they keep the mortgage in the seller's name?
The short answer is forever. What we mean by forever is that we always tell sellers and agents to plan to keep their name on the mortgage until the mortgage balance is paid off.
However, we can tell you that on average, we and our partners hold a property for about 7 years. The average homeowner stays in a home for about 7 years and it is no different for investors.
What happens if the expiration clause is triggered in the sale?
This rarely happens, but if the bank sees that the deed has been transferred, it has the right to request that the remaining balance of the loan be paid in one lump sum (hence the name “due on sale”). In this case, there are several options.
- We have spoken to lenders before to describe the situation and they have rescinded their request because ultimately they care about keeping their notes current.
- We could refinance the mortgage in your name.
- We could sell the property to pay the bank the balance of the mortgage.
In any case, the seller is not obligated to make a payment to the bank and we work with the bank to find a solution.