Transaction Costs
Applicants of HTP programs must be agreeable to a higher cost in connection with acquiring their residential property. Some costs exist even within the framework of a mortgage loan. Yet others are specific to this program:
For homes up to 750K, the following sample fees apply as a general guideline:
|
Cost Factor |
Amount |
|
HTP Analysis Fee |
$1500* |
|
Appraisal Fee |
$300-$500 |
|
Cash Consideration |
15%** |
|
Net Investor Fee |
5-15%*** |
|
Investor Closing Costs |
3-5%
(rolled In) |
*HTP analysis fee is $1500.00 per property application upfront AND 1% of overall trust amount after your residential property is acquired. One parcel per application permitted. ** Applies to residential properties offered at 150K to 750K. *** 15K minimum.
For residential properties over 750K, the following sample fees apply as a general guideline:
|
Cost Factor |
Amount |
|
HTP Analysis Fee |
$4000* |
|
Appraisal Fee |
1 – 6K |
|
Cash Consideration |
12.5 - 20%** |
|
Net Investor Fee |
5-15%*** |
|
Investor Closing Costs |
3-5%
(rolled In) |
*HTP analysis fee is $4000.00 per property application upfront AND 1% of overall trust amount after your residential property is acquired. One parcel per application permitted. ** Applies to residential properties offered over 750K. ***
The HTP analysis fee is charged to locate and place the transaction with a private investor. It serves no other purpose. It is paid directly to HT Powerbrokers, Inc. at the same time the application is submitted. It is refundable only in the event that the application is not approved or if the transaction cannot be completed on account of the HTP assigned investor.
The appraisal fee is contingent on the willingness of the seller to carry this expense. If payable, it is paid directly to the appraiser.
The cash consideration represents the amount of money that the applicant must provide to complete the transaction. These funds must be in the form of cash. Down payment assistance programs typically used in connection with mortgage loans are not compatible with HTP programs. Additionally, equity in any property may not substitute for cash consideration. Lastly, funds located in title escrow must first be released in order to be applied as cash consideration.
The net investor fee is what the investor charges to perform on a non-qualifying transaction. It is a small price to pay for an enormous individual commitment on the part of the assigned investor. The exact amount of the investor fee is determined by the transaction size and the amount the investor is agreeable to. It is not possible to determine in advance of submitting an application where the investor fee will precisely come in. Therefore, applicants should base their decision to apply on the maximum investor fee of 15% or 15K, whichever is greater. The investor fee is not paid out-of-pocket. It is rolled into your monthly payments.
The closing costs incurred by your assigned investor in connection with purchasing the property applied for is passed on to the applicant. It is not possible to itemize the exact costs in advance, though they will be detailed prior to completion of the transaction. Applicants that need this information prior to applying for our Residential Property Acquisition Program should simply not apply.
Our residential transactions are underwritten through the use of a REALTOR® and are subject to a 3% REALTOR fee not listed in the chart above. Applicants should apply for an HTP approval only if they are agreeable to the fees involved, some of which are known prior to the submission of an application.
Analysis Fee Refund Policy
In the event that we do not approve an application, the associated HTP analysis fee is refundable, providing the applicant signs a general cancelation form release. Equally, if the an investor is unwilling or unable to complete the transaction, the analysis fee is also refundable.
The HTP analysis fee is non-refundable in the event that we approve the application and the assigned investor is able and willing to complete the transaction.
This refund policy may not be superseded by a third party or verbal representations of any kind by any party. In the event that HTP grants a discretionary exception to this refund policy, a 25% cancelation charge may apply.
Summary
When carefully examined, our Residential Property Acquisition Program is seamless and easy to convey. In fact, the processing of an Residential Acquisition Program application and closing is by far speedier and less complex than financing via a traditional mortgage loan.
The Residential Property Acquisition Program is not exclusively suitable for individuals with poor credit. Interestingly, many of the applicants we receive are of excellent credit standing, but prefer a discreet acquisition process with a minimal paper trail.
"With our Residential Property Acquisition Program, you'll never have to look for a bad credit mortgage again!"
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