Magix Guaranteed Approval
Home Acquisition Program
Realize the American Dream of Home Ownership!
No Credit Check
No Credit Qualifying
99% Approval Rate - No Red Tape!
Bankruptcy & Foreclosure OK!
Tax Liens & Judgments OK!
The Magix Guaranteed Approval Home Acquisition Program is a way for anyone seeking home-ownership to acquire the home of their choice. It is comparable to financing. When conventional or sub prime lenders decline, this program will make the American dream become a reality.
This program is provided in cooperation with our exclusive Credit Partner network. Magix or our private Credit Partners are not banks or mortgage brokers.
Magix is a consulting and transaction facilitation company. Credit Partners are investors that buy the home for you, get financing based on their good credit and then transfer the home to you with financing in place.
The Credit Partners are often the only hope for people with credit problems to achieve home ownership.
Our goal is to help anyone to acquire their own home with every applicant always being approved, regardless of credit.
The Magix Guaranteed Approval Home Acquisition Program is not for everyone. Any applicant that could be approved by a bank should take that offer. Using this program results in a slightly higher cost to the applicant.
Almost any home (that includes single family residence, townhouse, condo and duplex to fourplex) located anywhere** in the United States is acceptable except for mobile homes, homes on stilts, rural properties or properties with large acreage.
While the program provides for Stated Income, we strongly suggest that you check that you make sure that you are not overextending yourself by adding payments for the home acquisition to your already incurred obligations for credit cards and revolving accounts (car payments etc.). We have provided you with an easy to use Debt-to-Income Ratio Calculator here.
*The rate charged is the interest rate to be paid by the Credit Partner plus an added 2.5%. For example, if the Credit Partner pays 8%, the rate charged will be 10.5%. (we expect rates to fall into the 9.99 to 12.99% range). A rate "buy down" option is available.
The Magix Guaranteed Approval Home Acquisition Program
This program generally requires that the home will be owner-occupied.
Investor properties (non owner occupied homes) will be evaluated on a case by case basis.
Assistance for closing costs and the 5% cash requirement is available when buying your home from the national Magix network of independent real estate investors or Magix Corporation (represented nationwide by Realtors®/Agents within our network). We buy homes that are a little longer on the market at a “cash” discount. From this discount we can finance your downpayment or closing costs. This often enables an applicant to acquire a home without any cash saved.
We require that the buyer has a minimum of 6% available, a portion of which may be "gifted" or provided by the seller or other resources, like relatives or friends. This applies to homes valued at 150K and higher. For homes valued at 75K to 150k we require a fixed amount of $9,000*. (for properties valued at $350k and higher please inquire).
Our Credit Partner group is not able to work with homes valued lower than 75K. There is no established maximum home value.
Once an application is received and the formal approval is issued, two separate transactions take place:
- The Credit Partner that is assigned to the applicant takes out a conventional mortgage loan and acquires the desired property.
- Immediately after the closing, the Credit Partner transfers the property for the use and benefit of the applicant into a land trust.
While the property is initially titled to the assigned Credit Partner, the entire transaction between the Credit Partner and the applicant is placed in a separate land trust (EHT - Equity Holding Trust™). As a result, the subject property and home are protected from any type of lien. This protects the assigned Credit Partner as well as the applicant.
The trust is managed by a corporate trustee, retained by you and the assigned Credit Partner
• Third Party trustee for your protection (Pac Holdings or Equity Holding Corporation with more than a billion dollars of value in property title holdings.) The trustee is bonded and well insured against fraud and dishonesty.
• Professional trust set up facilitation by NARS, North American Realty Services with thousands of trusts set up since 1990. Magix Corporation is a Professional NARS Network Member.
Since the home is deeded into the trust, the trust owns the home and the applicant gets first rights on the trust. During the term of the trust neither the Credit Partner nor the applicant actually owns the home. The only way an applicant may lose the home is by defaulting on the monthly payments, much the same way a mortgage loan default would work. The monthly payments are amortized like a mortgage loan payment is amortized. Technically, this type of "non RESPA transaction" is not a loan, but it is structured similarly.
The monthly payments covering the underlying mortgage payments (principal, interest, taxes and insurance) are expected to be approximately 1.15% of the home acquisition price. Example: $100,000 home acquisition price may have a monthly payment of roughly $1,150, depending on local property tax and insurance rates. The payment can be considerably reduced with a rate "buy down".
The allowed home acquisition value is three times your (stated) total gross income for you and your co-applicant(s) including income from social security, pension, retirement, dividends, rentals, interest, annuities and other sources.
The program has usually a two to five year term. At this time (the termination of the trust) the property must either be refinanced, sold or the investor beneficiary interest be purchased by the applicant.
Applicants of this program must accept a slightly higher cost when acquiring their home. Most costs are similar to those of a conventional mortgage loan, while others are specific to this program:
• Analysis Fee $500 (for properties over 300k $1,000 and over 600k $2,000, etc.). This fee is fully refundable if applicant is not approved according to our guidelines.
• Appraisal Fee $300-$500
• Earnest Money $500-$1500
• Magix Credit Partner Compensation 6% with a minimum of $9,000 (for properties over 300k please inquire)
• There are two closings to pay for in this home acquisition structure. Closing costs vary quite widely by state. The lower the purchase price, the higher the closing costs will be as a percentage of the loan. The closing costs for the first closing can range from 2% for high value homes to perhaps 6.5% (with a minimum of $5k) for lower priced homes. The second closing has a fixed fee of 2.5% with a minimum of $3,750.
The appraisal fee may be covered by the seller. The earnest money deposit is usually paid directly to the closing agent and the amount is negotiable.
The analysis fee is paid directly to Magix and the Credit Partner group at the same time the application is submitted. This fee is refundable exclusively in the event that our Credit Partner group rejects the application from the home buyer.
The additional costs of using this program may be summarized as an analysis fee of $500 and an Credit Partner fee of 6% (subject to a $9,000 minimum). The closing costs are also somewhat higher in comparison to those in a conventional loan since two transactions take place. There is also an annual 2.5% "equity bump" for the Credit Partner which needs to be paid when the trust is terminated (after 2-5 years) and the property is being refinanced. The applicant/resident beneficiary doesn't have to come up with this until then.
If the lender requires a down payment which can't be covered by the applicant, the Credit Partner receives an additional "incentive fee" to cover the cash down payment. The particular incentive fee will be qouted on a case by case basis.
Applicants will have to deposit a contingency fund (similar to security deposit) in the amount of one monthly payment together with the first month's payment before closing. In addition, pre-paid items need to be covered. This may include a hazard insurance premium, pro-rated taxes as well as insurance and tax deposits.
Applicants should only apply for a Magix Guaranteed Approval Home Acquisition Program approval if they accept the fees involved.
For updates on this program, please click here.
The Credit Partners
For each application we receive, we assign a private Credit Partner, who underwrites the transaction for the applicant.
Benefits for the Applicant (Trust Resident Beneficiary/Buyer)
• Guaranteed Approval
• Easy qualifications with Stated Income and No Credit Check
• Down payment may not be required
• Very affordable payments
• Magix network member may even pay closing costs and/or Credit Partner fee
• Pride of ownership as co-beneficiary in the trust without the constraints of traditional financing rules of the mortgage process
• Income tax deductions for mortgage interest and property tax payments
• Equity build up from reduction of mortgage principal
• The property is shielded from creditor judgments, IRS and state tax liens, lawsuits, bankruptcy, marital dispute claims (divorce actions) etc.
• The underlying mortgage doesn’t impact the financial statement as debt, only the value of the equity interest in the trust would be declared. This is a great benefit when applying for future credit (car, credit cards).
• All beneficiaries in the land trust are protected from illicit or neglectful acts of the other parties of the trust.
You may download and print this webpage as a PDF document here: GAP Program.pdf
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Magix Professional Network Members are separate and distinct entities, independently owned and operated real estate investment firms. They are independent contractors and no agency, partnership, joint venture, or employer-employee relationship is intended or created by Magix Corporation. Products and services provided by Magix Professional Network Members are separate and distinct from the products and services that are provided by Magix Corporation. **transactions in Tennessee and Louisiana are accepted only on a case by case basis. Terms and conditions are subject to change without prior notice.