Your 7% Option Consideration will get credited to you once you obtain your mortgage. We collect it within 3 days of putting a contract on the home you select. If it is not funded within 3 days of the contract we will automatically cancel the contract and you will be ineligible to go through our program with another house. Due to this policy please be sure to have all funds available for your 7% Option Consideration at the time we place on offer on your home. Once you become mortgage eligible and purchase the home back from Berry-Rock it counts as earnest money with the Guaranteed Right to Purchase.
What does the Monthly Payment Include?
The monthly payment includes both property taxes and insurance. The only other charge you might be responsible for is the HOA fee if the neighborhood you select a house in requires an HOA fee. If this is the case the HOA will be added to your monthly payment. There are no other monthly obligations. Berry-Rock Homes is simple and transparent, you will only pay the quoted monthly payment and nothing more until you buy the house from us. (note that monthly payments do increase 3% every two years)
Is any of my money going towards my purchase price?
Yes, .1% of the original purchase price is credited monthly to reduce the amount of money you owe. Example: on a $100,000 home, the monthly credit would be $100. ($100,000 X .001 = $100).
What upfront fees do I have to pay?
Berry-Rock Homes does NOT charge any fees or application charge other than the 7% Option Consideration. We simply require 7% of the home price for your Option Consideration and then you pay the quoted monthly payments. We negotiate closing costs to be paid by the seller. No surprise charges!
Is this a Loan or "Hard Money"?
NO, we do not provide loans and we are not hard money. We are a Gap program between now and when you can qualify for a mortgage.We buy the home in our name, lease it to you, and give you the guaranteed right to purchase it when you become mortgage eligible. We also report your good payment history to all three credit bureaus to help you qualify for a mortgage quicker.
Do I have to pay closing costs?
No, we will ask for the seller to pay all closing costs so the only thing you have to pay before the acquisition is the 7% Option Consideration. If the seller refuses to pay the closing costs you can either make up the difference or find another home.