Following are some of the most common questions we are asked.
Do you finance all homes? No, we only provide financing for homes we are selling.
How do I qualify for your mortgage? As we do not verify credit, income or assets, you only need the necessary funds (for your downpayment, closing costs, and first year of homeowner's insurance) to qualify for the mortgage.
Can I obtain my own mortgage through my bank? Yes. You may obtain a mortgage from any other source or pay cash. Our financing is provided for those who cannot obtain regular financing, or want to settle quickly.
Why is your interest rate higher than what banks charge? We charge a higher rate because we offer a no documentation loan (we do not verify credit, income or assets), and will provide a mortgage to anyone. Our risks are therefore greater.
How long does it take to obtain the mortgage? Because we provide a no documentation loan and do all the processing ourselves, we can usually close within 3 days. We will have all the paperwork to you within 1-2 days so you can review and have notarized.
Can we payoff the mortgage before the 7th year. Yes. You may payoff your mortgage at any time with NO Prepayment Penalty. Many mortgages are paid off within 3-4 years when personal situations improve and a regular mortgage can be obtained.
What are closing costs, and how much are they? Closing costs are expenses that you pay to purchase the property. They consist of: the fees and taxes the state/county charge for recording the deed and mortgage, two months of escrow payments for taxes and insurance, interest from the day of settlement to the end of the month, and any adjustments needed for taxes and utilities.
Closing costs average about $2,500. They will be higher if the purchase is near the beginning of the month, and lower near the end of the month due to interest.
Note that unlike most banks, we do not charge any fees for preparing or processing the mortgage.
Do you utilize a title company? Normally no. To keep your costs as low as possible, we do not utilize a title company. We do not require title insurance on the property as we have already obtained title insurance when we purchased the property. If any problem would occur, we can always go against our policy as we are holding the mortgage and thus still retain an interest in the property.
You may utilize a title company if you prefer. All costs associated with the title company, however, will be your responsibility.
Can we pay more than the minimum mortgage payment? Yes. Any amount received in excess of the regular amount due will be applied toward the principal balance of the mortgage. This is an excellent way to build equity in the home and reduce the total amount of interest you will pay.
What documentation do we receive showing we own the property? You will receive a warranty deed which reflects your ownership. After settlement, both the warranty deed and mortgage are recorded with the county. A copy of the recorded deed will then be sent to you. Until you receive the recorded deed (normally within 1 week of closing), your settlement sheet can be used for verification purposes with utility companies.
How does the balloon mortgage work? Payments are based on a 30 year schedule to keep your monthly costs as low as possible. As we only hold the mortgage for a maximum of 7 years, the balance of the mortgage amount (which will be a significant percentage of the original mortgage amount) is due at that time.
We have found that 7 years is ample time for someone to change their circumstances so that they can qualify for a mortgage through other sources. The refinancing of our mortgage should result in a much lower monthly mortgage payment.
Will you sell a home without doing any repairs? Yes. The prices of the homes shown on our website reflect the values if all repairs have been made, or if purchased "With Repairs Needed". If you would like to purchase "With Repairs Needed" and do all of your own repairs, both the price of the home as well as the downpayment are reduced.
What is necessary for us to enter into an agreement of sale and be assured we are going to purchase the property? For us to take the home off of the market, we require a $1,000 non-refundable deposit. Because settlement usually occurs quickly, the deposit is required to assure the buyer is serious. The deposit will be applied to the required downpayment and closing costs.
We will also provide an agreement of sale which details all the terms of the purchase and the date of settlement.
The whole process sounds "too good to be true". How can I be assured you are a legitimate company, and do you provide references?
We do not provide a listing of our clients to protect their privacy. You can, however, verify that we have sold numerous homes and provided mortgages on those homes by going to both the Brevard and Indian River County websites and search Hartvan LLC. The county websites will detail not only the warranty deeds, which transferred ownership from Hartvan LLC to the new owner, but also the mortgages indicating our financing.
By detailing the entire process up front, and posting everything involved for the purchase and financing, we try to be as open and forthright as possible. We don't need or want to hide anything, so everyone is fully aware of the entire transaction.
Finally, if you have concerns about either the home or the financing, don't purchase the home!