It’s a fact that many first-time homebuyers are hard-pressed to come up with a down payment. It’s a situation that George Caravelli, owner of Worthington Homes, in Lakeland, Illinois, has seen happen all too often.
“It’s holding people back. I see people struggling to come up with the money,” Caravelli said.
That’s why, on April 26, Worthington Homes added a new incentive to its recently-launched Rent-To-Own program.
“If you purchase a rent-to-own home up front, Worthington offers a $5,000 credit. “Right out of the gate, we’ll give you the $5,000 closing credit. It pays all closing costs and helps with your down payment,” Caravelli said.
The incentive fits in nicely with the legal side of mortgages, for example, with Worthington’s $189,900 price, which includes, 4 bedrooms, finished basement, and all appliances. “FHA mortgages and Fannie Mae and Freddie Mac mortgages allow a seller a credit up to 3 percent,” Caravelli said. “In essence, you can walk in and buy a home with no money, because we have the USDA program that’s 100 percent financing.”
The program also works well with no-money-down VA loans, because the $5,000 can be used toward closing costs, which aren’t covered by the VA.
Caravelli advises homebuyers to watch out for offer options when building a new home. “You need to check out the price point, first.” That can be astronomical, more than making up for the so-called “incentive.” “Everything is included with us, so we don’t need to offer options,” Caravelli said.
“It’s even cheaper than renting an apartment, and you have the freedom of home ownership vs. renting,” Caravelli said. “You can do what you want, vs. being a tenant, which has more restrictions. We’re taking away the hurdle of a lack of down payment. You get the house you want without having to spend any more, and you own it from day one.”
Lakewood, IL 60014