FAQ's: Mortgage

1. ​​​Do I have to be a first time home buyer to qualify?
   No, you just can’t currently be a homeowner.
   
   
2. Can I still buy a home with debt?
   You can still buy a home if you have debt. If your debt is high and will affect your ability to buy a home, Renaissance can help you develop a plan to reduce your debt. You don’t have to wait until after you have reduced your debt to call Renaissance. We can help you reduce your debt as quickly in a way that works for you, your budget and your family.
   
   
3. Can I buy a home on my own?
   Yes, as long as you qualify with your income, credit and debt. Family size does not matter.
   
   
4. How much do I have to make to buy a home?
   The amount of mortgage loan you may qualify for depends on your income, your credit score, your amount of debt and your down payment.
   
   
5. What if I don’t have enough money for a down payment?
   Renaissance program requires a minimum 2% contribution towards the purchase of the home plus reserves.
   
   
6. Can I buy a home after a bankruptcy or bad credit?
   Renaissance works with many individuals who filed bankruptcy in the past or have other credit challenges. Our staff will work closely with you to find the best way to re-establish good credit.
   
   
7. Can I still buy a home with bad credit?
   Many people who think they have bad credit are pleasantly surprised to find out that their credit is good enough to buy a home. Renaissance will assess your current credit status to see if it will affect your ability to obtain a mortgage. If your credit is not where it needs to be, we can help you improve it so you can buy a home.
   
   
8. Can you help me finance a piece of land?
   No, Renaissance does not finance tracts of land. Our mission centers on helping individuals and families purchase a primary residence where they can grow equity and financial well-being.
   
   
9. Can I get a loan to build a home on my land?
   No, Renaissance does not finance home construction loans.
   
   
10. How long does your process take?
    Situations vary depending on a customer’s financial picture. Some individuals are ready to look for homes right away and some need to take time to work on improving credit and other financial issues. After you meet with a Home Purchase Advisor, you will have a better idea of how long it will be before you are ready to buy a home.
    
    
11. Why should I buy when it’s cheaper to rent?
    In the long run, buying a home has always been a better deal than renting. Here is why: If you rent and pay $850 per month for 10 years: You spend $102,000, you get $0 equity. If you buy and pay $850 per month for 10 years: You spend $102,000, you get $88,541 total equity. While it is typical for rent to increase each year, with a fixed-rate mortgage you know what your home payment is going to be for the next 30 years.
    
    
12. Do all adults in the household have to be listed on the mortgage loan?
    No, however, we must count the income for every adult in the household for the grant funds.
    
    
13. Can Renaissance’s loans be used in conjunction with a loan from another lender?
    No, in order to receive assistance with The Dream Fund, Renaissance must be the lender.
    
    
14. Can a borrower be a previous homeowner and still qualify for The Dream Fund?
    Yes, with proof of sale of the previous home.
    
    
15. Do you finance condos?
    Yes, as long as the borrower is only purchasing one unit.
    
    
16. Does Renaissance offer refinancing of existing loan from other lenders?
    We do not offer refinance options on loans from other lenders at this time.
    

FAQ's: Business

1. How may the funds be used?
   Micro Loan fund uniquely provides two types of financing options, short-term and long-term. Micro Loans may be used for short-term working capital financing such as: the purchase of inventory and supplies.  Micro Loans can also be used for long-term capital financing such as: the purchase of furniture, fixtures, machinery and/or equipment. Proceeds cannot be used to pay existing debts or to purchase real estate.
   
   
2. Is there a minimum loan amount?
   There is no minimum loan amount.
   
   
3. What is the maximum loan amount?
   The maximum loan amount is $50K.
   
   
4.  What are the terms and interest rates?
   Loan terms vary according to the size of the loan, the planned use of funds, and the financial condition of the small business borrower. The maximum term allowed for a Micro Loan is six years.
   
   
5. What rate should I expect on my loan?
   Interest rates vary, depending on the U.S. Treasury rate. The maximum interest rate averages 8.50% based on U.S. Treasury rate and are subject to change.
   
   
6. Once I submit my loan application, how long will it take to hear from you?
   We will contact you in within a week of receiving your loan application.
   
   
7. How long does the loan application process take?
   It can take three to four weeks upon receiving a completed loan application package.
   
   
8. Is technical assistance required after you receive a loan? Yes, after you receive a loan, on-going technical assistance, as determined by Gulf Coast Renaissance is required.
   
   
9. Do you have a minimum credit score?
   We have an overall financial condition viability requirement that includes consideration of client credit score. Therefore, a minimum credit score is not required, however credit is a part of our loan evaluation.
   
   
10. How do I start the loan process?
    Download an application from our website: www.msgcrc.com, complete the loan application and submit the application with all of the required documentation to our office.
    
    
11. Are your loans secured or unsecured?
    All of our loans are secured and require collateral and personal guarantees.
    
    
12. Are there any pre-payment penalties?
    There are no pre-payment penalties for the microloans.
    
    
13. Do you provide personal loans?
    No, we do not provide personal loans.
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14. Does Gulf Coast Renaissance help to write business plans? No, clients are referred to their local SBDC office which provides educational classes on business plan preparation.