Frequently Asked Questions

In simple terms, selling your house "subject to the existing loan," as defined in Texas Property Code Section 5.016, means selling your property while keeping the current mortgage in place. The entire mortgage balance won't be paid off at the closing. 

Unlimited Real Estate Solutions will immediately catch up any back payments to bring the mortgage current if needed.  We will also make the negotiated direct payment to you as the homeowner, and we can also help with relocation assistance as Realtors.

This is not the same as a "Loan Assumption". Recent lending laws prohibit us from “assuming” the mortgage, meaning we cannot put the mortgage into our name, however, after closing a SubTo transaction, we now become responsible for making the mortgage payments on your behalf.  We accomplish making these monthly mortgage payments using a "limited power of attorney" that allows us to interact with the bank in regards to the loan, while ensuring that payments are submitted when due by the lender.  

These timely monthly payments will help to restore and rebuild your credit history, and you will retain the ability to call the lender or to search online to verify that mortgage payments have been submitted on your behalf by no later than the 15th of each month.

In an effort to further protect the homeowner’s interests, we will provide the seller with a "deed of trust" at closing which will allow them to recover the property through a “non-judicial” foreclosure if a monthly mortgage payment is missed. With this expedited ability to recover the property in a short time frame (30-45 days), the seller would be able to regain the deed and ownership to the home in a timely manner without extensive damage to their credit score.

After we've been making your mortgage payments on your behalf for at least 12 months, you can usually qualify for a new mortgage (like VA, FHA, or Conventional) with a different lender. The new lender can consider your current mortgage payment as "offset," which means it won't count against your debt-to-income (DTI) ratio. 

You'll still need to meet other underwriting requirements like verifying your employment, maintaining a good credit score, managing your debt-to-income ratio, and possibly meeting down payment requirements.

If your current loan is an FHA mortgage, it's a good idea to look into the criteria for obtaining a second FHA loan. Additionally, there are other mortgage options with low down payment choices, such as Fannie Mae HomeReady Loans, Freddie Mac Home Possible Loans, and USDA loans. These can provide more options for your specific situation.

We have many references for experienced mortgage lenders that know how to handle this type of transaction. 

If the homeowner already has a VA loan, they can still qualify for a second VA loan, depending on how much of their VA entitlement is left and the cost of the second home they want to buy. In places like San Antonio and Laredo, the maximum VA loan amount is currently $548,250.

To figure out what's available, we subtract the unpaid balance of the existing mortgage from this maximum entitlement. Whatever is left can be used for the second VA loan. The great thing about a second VA loan is that you don't need a down payment, or if you do, it's very minimal compared to FHA or Conventional loans, and you won't have to pay for mortgage insurance. There's just one condition: the second VA loan must be higher than $144,001.

As buyers purchasing a property "subject to the existing mortgage," Unlimited Real Estate Solutions will be responsible to keep making the monthly loan payments until it's completely paid off, which may take its full term. But there are a few situations where the loan could be paid off earlier:

1. If the property has enough value and is sold traditionally in the future, the money received from the sale would be used to pay off the whole mortgage.

2. Another scenario is if we choose to refinance the mortgage once the home's value has increased, and we can secure a lower interest rate, say, 1.5% lower or more. Our new lender would pay off the original mortgage in full.

3. A third scenario is if we sell the home using seller financing and the new buyer decides to refinance our mortgage or sell the home traditionally. In this case, we would receive payment from the buyer, and we'd use that money to pay off the original mortgage in full.

One significant aspect we address is your Debt-to-Income (DTI) ratio, a crucial factor in loan approvals.

By providing you with 12 months of meticulously gathered and organized statements, we offer a compelling case to your new loan officer. These statements clearly show that the monthly payments on the property are being paid by our company, not by you. This pivotal information can significantly influence your DTI ratio.

As a result, your DTI ratio, which may improve between 75%, up to 100%. A lower DTI ratio signals to lenders that you have more financial flexibility and are better positioned to take on additional financial commitments.

Furthermore, we understand the significance of your credit score in the loan approval process. Our approach not only addresses your DTI ratio but also helps you maintain or improve your credit score by ensuring on-time payments are consistently made.

Our commitment is to empower you on your journey to financial success, and improving your DTI ratio and credit score is a significant step in that direction. We are here to support you in achieving your financial goals, from securing a new loan to building a stronger financial foundation.

Unlimited Real Estate Solution will take care of all closing costs, so you won't have any out-of-pocket expenses. We purchase the property just as it is, without the need for any repairs. In fact, we're often able to wrap up the entire transaction, including getting any missed payments up to date and providing you with cash, in as little as 10-15 days. Your convenience and peace of mind are our top priorities.

Yes, Unlimited Real Estate Solutions collaborate with Realtors and ensure they receive their well-deserved commission. Whether they refer clients to us or seek assistance for their clients facing situations where bringing money to the closing table is a challenge, we are here to support both Realtors and homeowners alike. Your success and your clients' satisfaction are our priorities.