No Credit Check Program

By
Industry Observer with Alaskan Success,inc





Guaranteed Approval – 90% LTV Financing - No Credit Check Program

No Credit Check
No Credit Qualifying
99% Approval Rate - No Red Tape!
Bankruptcy & Foreclosure OK!
Tax Liens & Judgments OK!
Easy Income Verification
80-90% Financing
Affordable Rate*


Program Overview:

This program is intended for buyers that are experiencing a difficult time due to credit problems but have sufficient income to make payments on a home and have a 10% downpayment. The downpayment is not sourced or seasoned. Downpayment assistance programs DO NOT work with this program.

The program actually provides a credit partner that obtains a loan to purchase the property on behalf of the buyer.

When the credit partner closes on the property they immediately enter into a Lease Purchase Contract with the buyer. This gives the buyer control of the property as long as they make their monthly payments on time. The buyer then has a period of three years in which to refinance the property and pay off the Credit Partner.

Program Guidelines:

1.A buyer is located that does not qualify for any of our products. Buyer has 10% downpayment and wants to participate in the program.

2.The on-line application is completed and the $750 non-refundable (no exceptions) Analysis fee is paid to Alaskan Success,inc via Money Order/Bank Check along with the  sent to:

Alaskan Success,inc

5801 Fiji St

Anchorage,Alaska 99507

3.To speed up the processing time of the file an applicant should include the non-refundable Submission Fee amount of $999.00 along with the application fee.

4.Upon receipt of the applicable fees the file will be staged for processing and the background check along with verification of references and income will begin. (Expected 99% approval rate). Be sure applicant provides references that are not away on vacation or difficult to contact as it will slow down the process.

5.Once approved the additional information is needed to submit file to a credit partner. The additional information required for this phase is:


a.Proof of 10% Down Payment Funds
b. Property Information
c. Deal Structure: calculation of discount, spread and profit
d.Purchase Contract signed by seller and Consultant (Contract 205)
e.Assignment of Purchase Contract 205 – Email Bill for Assignment Form (when you have a deal)
f.Credit Partner Non Circumvent Agreement
g.Recent appraisal with “Market Rent Analysis” included (see appraisal section below)
h.Submission letter with appropriate security fee – Email Bill for Submission Letter (when you have deal)

Once all the above is received the file is submitted to the Credit Partner Group. To receive a written commitment it is expected to take about 5 to 7 business days. This time is an estimate and is not guaranteed.

6.You will be notified when a commitment is received from the Credit Partner. The buyer will be issued a Acceptance and Commitment Agreement that needs to be signed and then faxed back. The original needs to be shipped overnight after faxing. Shipping instructions will be provided when the agreement is issued.

7.Down payment funds are transferred to Credit Partner.

8. Closing procedure and instruction are provided.

Property Type:

Single Family - Owner Occupied Only – (no exceptions)
Duplexes – Owner Occupied Only, on a case by case basis
Home purchase amount minimum is $75,000. Above $500,000 on a case by case basis only
This program does not work on foreclosed property. Seller must be in title for a minimum of 12 months.
Transaction must be structured as a “Flip”

The Discount Structure of the Deal:

1. 6% Investor fee
2. 5% of sale price – Credit Partner Incentive Fee
3. 3% closing costs (minimum $5,000) Plus cost of appraisal, which is paid upfront
4. 2% transaction fee

Minimum Discount Example: All sales below 166K

Example of a deal where the minimum discounts apply
$75,000 sale to end buyer
$4500 Investor fee
$3750 100% Credit Partner Incentive Fee
$5000 closing costs 1st (minimum)
$1500 transaction fee

$14,750 – Total discount amount (19%)
$60,250 - Net to the consultant on this example.
(If consultant purchased at $50K profit would be $10,250)

The consultant flipping the property absorbs the total discount fee.

** A very easy way to determine the discount on all minimum deals (below 166K) is to discount the sale price by 13% plus the $5000 closing fee. Example: if sale price is 100K the discount would be $13,000 plus the $5,000 closing fee for a total discount of $18,000.

*** Remember this does not include the upfront costs – Analysis Fee, Submission Fee or Earnest Money and Down payment***

Example of a deal where the minimum discounts DO NOT apply with 100% LTV financing: (All sales above 166K)
$170,000 Sale to end buyer
Total discount of 16% - $170,000 x 16% = $27,2000 total discount

$142,800 – Net to the consultant on this example. (If consultant purchased at $125K, profit would be $17.8K)


*** Remember this does not include the upfront costs – Analysis Fee, Submission Fee or Earnest Money and Down payment***


Debt Ratio:

The buyer must be able to afford the property they are trying to purchase. The monthly payment for the property will be approximately 1.1% of the sale price. As an example, the purchase price is $100,000 – the monthly payment will be approximately $1100 per month. (This is not an exact figure - will fluctuate depending upon Credit Partners rate)

Quick Way to Determine a Buyers Maximum Purchase Price: multiply the borrowers verifiable annual income by 3.5. This will give you the maximum purchase price.

 

Appraisal:

A state certified appraisal with “Market Rent Analysis” is required on all transactions.

If a current appraisal is available it must not be older than 30 days from file submission date and have comps that are within 90 days from the date of the appraisal.

When ordering an appraisal before we know what product is being used be sure the order includes the following language:
“ Reassignment to a broker or lender or re-certification of appraisal within two months of appraisal report completion will be done at no extra charge”.

For transactions that already have a recent appraisal - eventually the appraisal will need to be endorsed to the credit partners lender - when this information is available. There sometimes is a cost to do this. By including the above language with the initial appraisal order you should not be charged for it if the appraisal firm accepts the order.

Contract Earnest Money:

Every transaction requires earnest money be provided upon entering contract. This amount is no less than half of one percent of the sale price with a minimum amount of $500. The earnest money should be collected by Alaskan Success,Inc and held until a credit partner is assigned. When the credit partner is assigned the we will send the earnest money to the credit partner in the form of a cashiers check or money order. The credit partner will then provide the same amount to the seller as earnest money from his/her own account using sourced and seasoned funds.


Buyers Upfront Expenses to Use Program:

Buyer(s) must provide:
Analysis fee of $999.00 – Non-refundable (at time of application)
Credit Partner Submission Fee of $750 – Non-refundable
Earnest Money – half of 1% of the sale price or $500 minimum (credited towards downpayment)
Appraisal Fee – averages $300 to $500 depending upon location. (can also be paid for by the seller)

A Word from Alaskan Success,Inc:

We have gone to great lengths to find and facilitate a program such as this for our clients to use.

Finding buyers for this program is about as easy as it will ever get. Every buyer you submit for pre-approval that does not qualify for our Series 4000 or Series 2000 Program will most likely qualify for this program. How much easier can it get?

If you examine closely what this program does for you and your buyer, it’s amazing. You get to flip a property to a buyer that would have a hard time renting a home and the buyer gets into the home they want.

The program parameters that are outlined are based upon information provided to us from the investor company. They are not negotiable. If you don’t like any part of it, move on. Do not call us to ask for other considerations. If there is a special buyer circumstance, they need to address it when they are interviewed.

The Analysis Fee and Credit Partner Submission Fee are non-refundable. The Analysis Fee is for processing and facilitation of the entire file and includes buyer background check along with income and employer verification and packaging for presentation to Credit Partner Group. The Credit Partner Submission Fee is for the constant marketing efforts to attract, interview, updating and approve Credit Partners for program participation. Again, this is a non- refundable fee. The requirement for buyer’s to be approved for this program is very simple. If they have two years continuous employment (different industry OK) and can prove it and assuming they pass a background check – they are approved. They will be approved to purchase a home for 3 times the amount of their verifiable income. If false information or unverifiable income is stated to qualify for this program they will be denied. Either case we must complete our work to make a determination and therefore the funds are not refundable. We strongly suggest that you inform the buyer to be absolutely sure they are being truthful regarding the information they provide. Be diligent yourself – have the buyer provide their income documentation to you before they apply.

 

Program information is current as of 2/21/2008

Posted by

Robert Skulka  Alaskan Success Inc

8144 Ammons way

Arvada,Colorado

720-299-9919

Comments (1)

Anonymous
Dean

Reviewed.

Mar 27, 2010 06:40 PM
#3