Dream Cash

The houses you want all receive multiple offers. How do you stand out?

You have a good job, good credit and ready to buy a home. Lenders are lining up to give you a mortgage. Congratulations! The problem is that given the fierce competition for homes in your area, how do you stand out from other buyers and get your Dream home? The answer: Dream Cash.

APPLY NOW

HOW IT WORKS

Once qualified, you will go through the normal house search process with your real estate agent.

When you are ready to submit an offer, Dream joins you on the Purchase Agreement so that you can submit an offer without a mortgage contingency.

Once your offer is accepted, you go through the normal process to close the purchase with a mortgage.

If all goes according to plan, Dream drops out of the picture and you buy the house. If you cant close your purchase with a mortage in 30 days, Dream will buy the house and lease it back to you



REQUIREMENTS


  • Ready

    Pre-qualify
    for a mortgage

  • 12+

    12+ Months Of
    Housing History

  • $4,000

    $4,000 Minimum
    Monthly Income

  • $

    Funds For Down Payment
    And Closing Costs


FREQUENTLY ASKED QUESTIONS

WHAT IS DREAM CASH?+_

Dream Cash is designed to turn buyers that have pre-qualified for a mortgage into cash buyers to make their offers more competitive.

WHAT ARE THE STEPS INVOLVED?+_

1) Read the program guidelines and see if it sounds right for you

2) Apply (see more on minimum qualifications to Apply below

3) Pre-qualify for a mortgage (you can do this before or after you apply with Dream America and we are happy to introduce you to local lenders familiar with Dream America).

4) Find a home that meets your needs

5) Dream will work with you and your agent to put an offer with no financing contingency in on the home you select.  The buyers listed on the contract will be Dream and you.

6) Dream will submit proof of funds with the offer agreement so the seller knows we mean business. Closing will be scheduled for 30 days later.

7) Once your offer is accepted, you will go through the normal process to close on your mortgage (this is driven by the mortgage lender, not Dream)

8) If everything goes according to plan and you secure your mortgage, we amend the Purchase Agreement a few days before closing to switch Dream to a back-up offer.

9) You close on your purchase and move in!  Dream is out of the picture.

10) If the mortgage is delayed and the seller will not extend the closing, Dream will step in and purchase the home.  We will then lease it back to you for 12 months with an option to buy as soon as you secure your mortgage.

WHAT ARE THE MINIMUM QUALIFICATIONS?+_

You need to be “mortgage ready” – i.e. you need the income, savings and credit score required by your lender to qualify for a mortgage

+ Household income of $4,000+/month (applicant + co-applicant, if any)

+ FICO score of 620+ (some lenders accept 580+, but 620+ is a good rule of thumb)

+ Track record of paying rent or mortgage on-time (we will verify)

+ Cash available for your down payment and closing costs (as required by the mortgage lender).  This cash can come from savings, 401k or eligible gift

HOW DOES IT WORK?+_

Once you are qualified, you will go out with your real estate agent to pick a home in your community that is right for you.  Dream is not involved in selecting your home. Once you find the home, we submit an offer with you that has no financing contingency.  This should help you get the best possible price and increase the likelihood your offer is accepted!  In general, sellers will accept a lower price from a cash-buyer because of the certainty it brings to the process.  After the offer is accepted, you continue with the mortgage approval and closing process.  If all goes according to plan, you secure your mortgage and close on the purchase. Dream is out of the picture. If for any reason you unable to qualify for a mortgage and purchase the home, Dream will purchase the home and lease it back to you for 12-months with an option to buy at any time.  You can buy your Dream home as soon as your mortgage comes through.  And the lease is canceled penalty-free when you buy your Dream home.  There is no minimum rental period.  We want you to buy your home as soon as possible!

IS DREAM CASH AVAILABLE IN MY NEIGHBORHOOD?+_

Dream America is currently available is major metro areas in FL, GA and TN.  Once you qualify, you can go out with your agent and pick any eligible home that fits your needs.  

WHICH HOMES ARE ELIGIBLE FOR DREAM CASH?+_

+ Single family home, townhouse or condo eligible for FHA financing

+ Primary residence only (2ndhomes and investment properties are not eligible)

+ List price of $150,000 up to FHA limit (which varies by region)

+ Homes built or renovated in the last 15 years.  You are responsible for maintaining the home and the last thing we want you to have is big repair bills!

+ Dream America’s purchase price today must be less than the appraised value 

Except for new construction, we order an inspection on all homes before we purchase them and share that with you.  We then ask the seller to make any necessary repairs. We also insure that all Dream homes come with a 1 year home warranty to cover HVAC, plumbing, electric and appliances.

WHAT FEE DOES DREAM CHARGE ME?+_

Dream charges 1% to partner with you on the purchase.  However, certain mortgage lenders may offer you a closing credit to offset this fee. Please ask a Dream representative for details.

My plan is to buy. But if I am stuck renting, how much is the monthly rent?+_

Rent is determined by house price, property tax, HOA fees and insurance costs.  To state the obvious, rent is more expensive than your cost of ownership once you obtain a mortgage!  That is why we offer a penalty-free early lease termination when you buy your Dream home. Please also note, the rent you pay does not go towards your purchase.

To calculate your rent, please visit http://www.dreamamerica.com/what-is-the-dream-cash

Sample rent pricing:

Home price                                      $200,000

Annual property tax                              $3,000

Annual HOA fee                                     $600

Estimate monthly rent                           $1,890

HOW DOES THE OPTION TO BUY MY DREAM HOME WORK?+_

The option to buy your Dream home requires an upfront payment equal to 5% of your option purchase price (more on that below).  This payment is not a fee because it is credited back to you when you purchase your Dream home.  This insures that you have down payment and closing cost funds available when you exercise your option to buy.  It also insures that you are committed to buying your home because you will forfeit the option payment if you don’t buy the home.  This is a very important point so we will emphasize it again – if you walk away from the house you will lose your option payment.  All of it.  Of course, you already decided to become a homeowner and selected the house you want.  Dream America should only briefly be in the picture until you close your mortgage.

I’M A VET ELIGIBLE FOR A VA MORTGAGE. DO YOU STILL NEED 5% FOR MY OPTION?+_

No.  We only require a 3% option payment from anyone with a VA certificate of eligibility. Thank you for your service.

HOW IS THE OPTION PURCHASE PRICE DETERMINED?+_

We expect that everyone accepted into Dream cash will qualify for a mortgage and buy their house so this will be a moot point for most. However, if you don’t qualify by the closing date and wind-up in a Dream lease to own, you can buy your house back in 90 days for 3% more than we paid for it.  However, if you wait longer you will pay more to buy your Dream home.  If you buy it in 6 months, you will pay 6% more than Dream America’s acquisition cost.  If you wait 12 months, you will pay 10% more.

WHEN IS THE OPTION PAYMENT DUE?+_

At the time you are accepted into Dream Cash, you will be required to escrow funds equal to your option payment. If your mortgage proceeds as planned, these funds are released for your down payment and closing costs. If you can't close with your mortgage, these funds will be used to pay for your Dream America option payment simultaneous with Dream America’s purchase of the home.

WHAT HAPPENS IF I STILL CAN’T QUALIFY FOR A MORTGAGE BEFORE MY LEASE ENDS?+_

We understand circumstances change.  Things happen.  If you can’t qualify for a mortgage by the end of your lease, the next question is did you pay your rent on-time every month during the lease?  Or did we have to chase you time and time again for the rent?  If you paid on time, no problem.  We will offer you a new 12-month lease.  Your rent will increase by 5%.  And the option prices will increase too.  On the flip side, if you haven’t paid your rent on-time during the last 12 months, we are exhausted chasing you.  We need to focus on clients that are serious about become homeowners.  You will need to move out. 

As described above, if you don’t purchase the home for any reason, you will lose your option payment.  We don’t want to see this happen.  We want 100% of our clients to buy their home from Dream America in 12 months or less (less is a better deal for you!).  We are not a long-term landlord.  We don’t sit on an inventory of houses.  If you don’t buy your house, Dream America will face many costs in re-selling it.  That is why you will lose your option payment.

WHAT IF THE HOUSE DOESN’T APPRAISE FOR THE OPTION PRICE IN THE FUTURE?+_

As described above, your option purchase price is set when your lease begins.  We don’t have a crystal ball and don’t know what the appraisal will be in the future. In order to bridge any gap, you may need to contribute additional funds to the closing.  In order to make this as painless for you as possible Dream America will contribute too.  If all of this is still not enough, you may need to continue to rent and try again in the future.

ARE THERE ANY CLOSING COSTS?+_

The plan is for you to obtain a mortgage and Dream to drop out of the picture.  If all goes according to plan, you will have normal closing costs associated with a mortgage.  Your mortgage lender will give you an estimate of these costs.

If Dream America ends up buying the home, Dream pays the closing costs up to $2,500 when we purchase the home.  You will pay all closing costs when you qualify for a mortgage and purchase your Dream home.  You should plan on the FHA down payment requirement plus closing costs to exceed 5% (i.e. the credit you are receiving back from Dream America).  So it is important that you save additional funds during the life of your lease. 

WHO MAINTAINS THE HOME DURING THE LIFE OF THE LEASE?+_

You are responsible for maintaining the home during the life of the lease (and thereafter once you purchase it!).  As an additional benefit for you, we will insure your home comes with a home warranty, covering appliances, electric, HVAC and plumbing during the life of your lease.  

CAN I MAKE COSMETIC IMPROVEMENTS TO THE HOME DURING THE LEASE?+_

Absolutely! You are free to upgrade the landscaping, paint the walls, install new carpet, etc. in your Dream home.  Major construction involving structural changes is not permitted. You need to buy your Dream home first.

ARE PETS ALLOWED?+_

Yes, pets are allowed but pet breed and age must be listed in the lease.  A non-refundable $250 pet deposit will also apply.  Certain pets may be excluded due to insurance restrictions or community standards.

WHAT IF I HAVE MORE QUESTIONS?+_

Email us at info@dreamamerica.com.  Be sure to include your phone number and let us know if you are a potential client or a real estate agent. 

HOW DO I APPLY?+_

Click here to start the application process: http://www.dreamamerica.com/apply