FAQs

Who do you serve?

Our aim is to serve anyone wishing to own a home in the Greater Milwaukee Area. While some families choose the convenience and affordability of apartments, most are forced to rent due to the lack of affordable housing or inability to qualify for financing. Our program aims to fill this gap. According to US Census Bureau statistics the City of Milwaukee has approximately 230,000 households. Among those households the ownership rate is only 42% compared to a national average of 64%. If you believe, like we do, that the desire to own a home in Milwaukee is no different than the rest of the country that means there are currently 50,000+ households dreaming of ownership in the City of Milwaukee alone. That number is much larger if you add in the surrounding communities.

Why is having a home of your own so important?

Harvard, HUD and others have done studies that prove when families and individuals have the stability of their own home in a community, incomes rise, the number of children going on to higher education increases, family stability increases, likelihood of children turning to crime is lowered, and overall outlook on life is improved. The pride of home ownership is a powerful force.

What sets your affordable housing program apart from others?

We can provide the financing. No banks are needed. Past credit is not one of our criteria in the approval process. If a client doesn’t have sufficient down payment, we have several plans that help them step up to their goal of home ownership.

Why don’t your clients get a bank loan?

Because they can’t. Some are self-employed or have irregular or non-traditional streams of income. Others have issues from their past including job loss, divorce, foreclosure, bankruptcy, etc. that have lowered their credit scores and lenders won’t work with them. Our plans do not rely on past credit history as the determining factor. Unlike banks the two primary criteria we use to qualify our clients is 1) sufficient down payment and 2) ability to afford the monthly payment. The down payment can be sourced from savings, gifts from family; county, state, and city grant programs (if available); IRA or 401K loans; and philanthropic foundations.

Why use your program?

Because we serve people where they are. We help them get on the Path to Home Ownership now. If they have a job and/or sufficient verifiable income, then we can provide them with a home.

Why shouldn’t I just go to another provider, such as Habitat?

If you want to own your own home you should consider any and all options available to you. The simple fact is there is FAR more demand for these programs in Milwaukee than the number of houses they can supply. And not everyone will qualify for these programs. Our aim is to supplement these providers.

Where does your inventory of homes come from?

Bank foreclosures, tax foreclosures, probate properties, real estate agent listed properties, and properties sold to us from the general public.

What are the different program levels that you offer?

To move into a home our clients can choose from the following plans 1) Rent, 2) Rent to own, 3) Buy Using Our Financing, 4) Buy Using Traditional Financing (FHA or traditional bank loan). To save for a down payment we have two additional plans 5) Work for Equity for those who can do some rehab work and receive down payment credits, and 6) VIP for those who don’t have the money now but want to get started with what they have and build up each pay period from there.

Can anyone qualify?

No. Only those with income from a stable job, pension, social security and/or disability can qualify.

What are your fees?

We don’t charge any upfront fees. We do require a nominal application fee of $50.00 (per applicant) to pull credit and set expectations of how long it will take for them to get financing. Once approved, sufficient Move-In Fees, Option Fees or Down Payments are required, depending on the program the client chooses or is qualified for. These amounts are based on the price of the home.

How long does it take to qualify someone?

It depends on how long it takes to reach the references on their application. Most are complete within 24-48 hours.

Is there a waiting period?

That depends on the needs of the client. If the house they need is in inventory, then no. They could literally move in the day the application is approved and all monies paid. But if they require a different number of bedrooms, location, price point, or style of home than what is in inventory, then we can find them a home they like that fits within our acquisition criteria.

What kind of “Down Payment” is required?

If a client starts at the Bronze level (Rent), the Move In Fee is slightly more than the amount of one month’s rent. At the Silver level (Rent-To-Own), we require approximately 3-5% of the price of the home. At the Gold level (In House Financing, also known as Owner Financing or Seller financing) we require at least 10% down. For our Traditional Sale program (traditional or FHA loan) the amount down will depend on the type of loan they qualify for. Of course, the more you put down, the lower your monthly payments will be.

Can the Down Payment be adjusted?

Yes. Typically we are working with previously owned homes. Most require some work. Some require a lot of work. Many clients have the skills or friends and family with the skills to do some or all of the work. Most require only cosmetic (paint and carpet) repairs but some require new heating and air units, roofing, windows, painting, tile, carpet, cabinets, etc. We work out the agreement together with us doing what they can’t. We CREDIT their down payment for any work they do.

What if someone doesn’t have the required down payment?

They can join our VIP program. This allows them to put as little as $500 in escrow with us. Then each pay period they can add to this account until they build up the amount required for the program they choose. This is fully refundable if they change their mind or have an emergency or change in circumstances.

What is an Agreement for Deed?

Agreement for Deed, Contract for Deed, Land Contract or Bond for Deed are recognized legal terms for the seller holding the deed while the buyer pays the agreement. This is similar to a car lender who holds the title as collateral for the loan and allows the borrower to use the car. Should the buyer default on the agreement by not paying as agreed, then the seller can repossess the property and doesn’t have to go through the expensive and lengthy foreclosure process to clear the title. This procedure is recognized by the IRS and the buyer still receives tax benefits by writing off interest and property taxes on their federal income tax return each year. Agreement for Deed also offers a benefit to our clients in that if they do get in trouble and default, an eviction is better than a foreclosure on their credit report. This minimizes the damage done to their credit score by any inability to pay as agreed for whatever reason.

What happens if your client gets behind on their payments?

Our goal is to keep them in the home if possible. We start by finding out what their issue is as to why they haven’t paid. As long as they have dependable, predictable income then a workout is possible. We will take payments each pay period to resolve the arrears based on the agreement.

Do people ever refinance and purchase their property with a new loan?

Yes, they certainly do. In fact, we encourage our clients to set this as their ultimate goal. This is what we call our Platinum level. As soon as their credit has improved enough, they can and should obtain a FHA or traditional loan at a lower interest rate which can lower their monthly payment. We also provide them with a do it yourself credit repair kit free of charge or they can join a credit repair company resource we have had good results with.