Being told you don’t qualify for a traditional mortgage can be discouraging, especially when you’re financially prepared for a monthly housing payment and ready to become a homeowner.
But sometimes, “not right now” doesn’t have to mean “not at all.”
TLP Mortgage is now offering access to HomePact, an alternative path to homeownership designed for buyers who may not currently meet traditional mortgage requirements.
HomePact can help bridge the gap between renting and buying by allowing qualified participants to move into a home now while working toward traditional mortgage financing in the future.
What Is HomePact?
HomePact is a homeownership program for buyers who may have the income and ability to make a housing payment but face challenges qualifying for a traditional mortgage today.
Those challenges could include:
Self-employment
1099 income
Recently starting a business
Significant tax write-offs that reduce qualifying income
Previous credit challenges
Other circumstances that make traditional mortgage qualification difficult
Instead of putting homeownership completely on hold, HomePact may provide another option.
How Does HomePact Work?
The easiest way to understand HomePact is to look at the process step by step.
1. You choose the home.
The buyer identifies the home they would like to purchase.
2. The HomePact partner purchases the property.
Rather than the buyer obtaining a traditional mortgage immediately, the program's partner agency purchases the home using FHA financing.
3. You move into the home.
The buyer enters into a long-term homeownership agreement, moves into the property, and begins making monthly payments.
4. You begin building toward ownership.
As payments are made, the amount the buyer would eventually need to pay to take ownership is reduced. This allows the buyer to work toward future ownership while also working toward traditional mortgage qualification.
5. You transition into traditional financing when you're ready.
Once the buyer is able to qualify, they may have options that include assuming the existing FHA loan, refinancing into their own mortgage, or paying the remaining purchase amount and taking legal title to the property.
The goal is to create a pathway from where you are financially today to traditional homeownership later.
Who Might HomePact Be a Good Fit For?
HomePact may be worth exploring if you:
Are self-employed
Receive 1099 income
Recently started your own business
Have strong income but significant tax deductions
Have experienced past credit challenges
Can comfortably afford a housing payment but haven't been able to qualify through traditional mortgage financing
Every buyer's financial situation is different, so eligibility and program suitability should always be reviewed individually.
Why This Matters for Self-Employed Buyers
One of the most frustrating parts of mortgage qualification for business owners is that the same tax strategies that help reduce taxable income can sometimes make qualifying for a mortgage more complicated.
A successful business owner may have plenty of cash flow but show less qualifying income on their tax returns because of legitimate business deductions.
HomePact gives some of these buyers another avenue to explore instead of automatically assuming they have to continue renting for several more years.
Homeownership Doesn't Always Follow a Straight Line
Traditional financing is still the best path for many buyers. But everyone's financial story is different.
A credit event, career change, new business, or unconventional income source shouldn't automatically make someone believe homeownership is impossible.
Sometimes the answer is simply finding a different path.
HomePact was created to help bridge that gap.
Wondering If HomePact Could Work for You?
The first step is a conversation.
A TLP Mortgage loan professional can review your situation, discuss traditional financing options first, and determine whether HomePact may be an alternative worth exploring.
Ready to learn more? Contact TLP Mortgage and let's talk about your path to homeownership.
Program availability, eligibility, terms, property requirements, financing options, and qualification guidelines are subject to change. HomePact is not a traditional mortgage loan. Buyers should review all program documents and requirements before entering into an agreement.
