Mortgage Brokers - Finance More Home Purchases with RTO Homes
There’s nothing more frustrating than not being able to help a client. It might be because they have bad credit, maybe they are self-employed and don’t have an acceptable record of payments, or maybe they are new to the country. The reason doesn’t matter, all that matters is you can’t help them, and therefore can’t earn your commission. That’s where RTO Homes can help.
RTO Homes - The Alternative Home Financing Option
At RTO Homes, our goal is simple – we want to help people finance a home purchase and build a better future for themselves and their families. When the bank says no, we look past the credit score and/or any other disqualifying issues to see how we can finance the home. We take into account other sources of income, including irregular income, potential rent and any other way the client feels they can make their payments. We work with the client to find a way to get them the home they want.
How does RTO Homes finance home purchases for my client?
Typically, the bank will determine a mortgage approval based on credit score, income and size of the down payment to determine the client’s ability to pay down the mortgage. If the credit score is lower, the bank typically asks for a higher down payment. For many people, increasing the down payment is not an option.
What RTO Homes does is take the bank out of the approval process. We purchase the home, and your client makes payments to us. We finance a portion of the home’s purchase through traditional mortgages, and supplement the rest through a combination of private equity and the client’s down payment. The bank, in essence, is lending RTO Homes the money, not the client. With our financing capacity, we can negotiate and secure the loan with the bank on our end much easier.
How does the mortgage broker benefit?
When you refer someone to RTO Homes for financing, you will receive a referral fee from us equivalent to your normal bank compensation upon completion of the transaction. And at the end of our contract, you will have a client who appreciates everything you did for them when no one else could help. Not only that, your client will have a much better credit history, having made regular scheduled payments for a period of time. Best of all, they are now in a position to secure a mortgage of their own for the property, and will be looking to you for additional assistance. How can you go wrong?
What's the difference between a traditional mortgage and an RTO Homes financed purchase?
There are a couple of differences between a traditional mortgage and the RTO Homes program:
- The client does not own the home, RTO Homes purchases it and ‘leases’ it back to them for a contracted period of time.
- At the end of the contract, the client can purchase the home outright at a price agreed to in the initial contract (with your help securing a new mortgage, of course!)
- The rate is somewhat higher than a traditional mortgage, as the risk of default is higher. RTO Homes takes on the risk where the banks won’t and at a much more attractive rate than other alternative mortgage lenders.
- RTO Homes is much more flexible than the banks, looking at all possible options to assist your client with the program if they run into challenges during the term of the contract.
Find Out How RTO Homes Can Help You Help More Clients
Purchasing a home is a big commitment that shouldn’t be rushed, even in today’s real estate market. But time is something your client won’t have on their side when they are entering the market. Take a look at our Home Buyer’s Guide to get a better idea of how the RTO Homes Flexible Financing System works. Or if you have any specific questions, contact us and we’d be happy to walk you through our program. Together, we’ll get your client into the home they have been dreaming of!