FAQs

A Link Home Loan is a contract for deed (otherwise known as an installment contract or land contract or seller financing agreement) in which Trio finances a home for a customer using what’s called a Wraparound Mortgage. A wraparound mortgage is a home loan that allows a seller (Trio and its affiliates) to maintain a mortgage while a buyer (you, the customer) obtains another mortgage which “wraps” around the seller’s original mortgage. As a type of secondary mortgage financing, wraparound loans mean that the customer will make monthly payments directly to Trio. Trio guarantees payment on the original mortgage as part of its service to the customer. Link Home Loans are legally structured as an installment contract and are secured in most states by recording a Memorandum of Contract in the public record of the financed home. Ownership of the home is transferred to the customer when all required payments are completed under the Link Home Loan, or the contract is otherwise paid off in full by the customer.
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A Link Home Loan can finance up to 100% of the FHA loan limit for a given market area, but no more than the appraised value of the home. A customer may purchase a home for more than the FHA loan limit, but the customer will have to fund the difference between the home purchase amount and the FHA loan limit as a down payment. You can look up your market area’s loan limit on this FHA link: FHA Mortgage Limits | HUD.gov / U.S. Department of Housing and Urban Development (HUD).

Payments on the Link Home Loan cover Trio’s fully serviced monthly mortgage payment(s) plus the costs of servicing, plus a risk sharing contribution. Typical monthly payments include principal, interest, FHA required mortgage insurance, property taxes, hazard insurance, servicing and risk sharing.

Most Link borrowers are not required to make a down payment. However, when program underwriters determine that a customer’s credit, job history or housing history is uncertain, a down payment may be required. If a down payment is required, it is typically between 3% and 5% of the home purchase price. However, since the US Treasury began increasing interest rates in 2022, down payments are typically required.

Borrowers are responsible for paying the costs to close the loan used to purchase or refinance the home, as well as certain program administration fees. Administration fees include a closing fee approximating 0.50% to 0.75% of the purchase price, $1,295 program fee, $465 for signing and $325 if the home is subject to an HOA. All Link Home Loans include both hardship payment protection and post-purchase counseling from a national HUD approved agency. Costs for these services are included in the costs to close the loan for the home purchase.

Trio’s affiliate, Trio Residential LLC, is the servicer on the Link Home Loan. All monthly payments except your first payment, will be paid to Trio Residential LLC via electronic payment (ACH). An ACH payment form is included with your signing package at closing. To access your payment portal go to mylinkloan.com and select ‘My Payment’. Your first monthly payment and prorated costs will be paid when you sign your Link loan agreement.

Link Home Loans provide up to 100% financing up to the appraised value of the home purchased (up to a maximum of the area FHA loan limit). Financing terms include either a 20 or 40 year term, with the 40 year being fully amortizing and the 20 year having a 5 year interest only period with a balloon payment after 20 years. Interest rates depend upon customer qualification and are between 1.25% and 2.5% above Trio’s corresponding FHA loan. This interest rate premium covers the customer’s FHA required mortgage insurance and provides required program servicing reserves. Any second mortgage obtained for the customer will have an interest rate between 3% and 6% with a 15 or 20 year term.

Yes, all Link financing payments are reported to the three major credit bureaus. On-time payments and late payments plus the total outstanding loan obligation are reported each month.

Link Home Loans are intended to be used for owner occupancy, but you can own another home and qualify. You will need clean mortgage payment history and meet higher qualification standards. Additional down payment funds will be required based on your application, the location of the home and home price. You cannot use the Link financed home for investment purposes or as a long-term rental.

A Wraparound Mortgage is defined as a secondary financing arrangement in which a lender, who is often the seller, leaves their loan intact and gives the borrower a second, larger loan. The total amount of a wraparound mortgage includes the previous mortgage's unpaid amount plus the additional funds required by the borrower to purchase the home. The borrower makes payments on the larger loan amount to the secondary lender, who continues to make payments on the original loan. Link Home Loans are legally structured as an installment contract or land contract and are typically secured by recording a Memorandum of Contract in the public record of the financed home.

Property taxes and interest paid by a Link customer may be deductible for Federal and state income tax purposes subject to the advice of a tax professional.

During the first 2 years, the customer can assume the underlying FHA loan. The customer may be required to obtain a second mortgage if necessary to fully payoff all amounts owed to Trio. After 2 years, the customer can either assume the underlying FHA loan or use any other form of financing to pay off the Link Home Loan. If a Link Home Loan is refinanced or paid off prior to during the first 3 years, a premium of 2% of is added to the payoff amount to account for the initial mortgage insurance premium included in the underlying FAH loan but not included in the principal balance of the Link Home Loan.

Each financed home is required to have property hazard insurance, mortgage insurance, and renter’s insurance. As required by FHA home mortgages, the cost of property hazard insurance (sometimes called homeowner’s insurance) and mortgage insurance are included in the customer’s monthly payment. The cost of these policies may increase each year based on actual costs. The customer’s renter’s insurance policy must cover the contents of the customer’s home and loss of use in the event of significant property damage. Should the customer directly obtain property hazard insurance, a renter’s insurance policy may not be required. Customers are responsible to pay all deductibles and related administration fees should a claim be filed.

Maintaining your home is important for the health and safety of your household as well as maintaining property values. A home warranty from a qualified third party is required to be in place and paid for by you. A home warranty covers many home repairs that are not covered by hazard insurance policies. For a service fee generally ranging from $75 to $100, you can have many typical plumbing, electrical and other items repaired. Trio recommends national providers such as First American Home Warranty and American Home Shield. You are required to provide proof of coverage upon renewal each year.

All Link Home Loans include hardship counseling and payment protection provided by Applied Assurance Corp. HPP offers economic support in case of a financial hardship, such as loss of income, reduction in income, disability, death, or qualified impact due to a natural disaster. Costs for HPP are included in the costs to close the loan for the home purchase and then in the monthly payment beginning in the 13th month. Should you have a hardship and need to submit a claim, go to www.appliedassurance.com.

As the buyer of the home, your name and the name of those over 18 with qualifying income are included on the Link Home Loan. The counterparty seller on the Link loan agreement is one of Trio’s affiliated companies and is listed on the title to the home until such time you payoff the Link Home Loan.

The Link Home Buyout Agreement is a 40-year home financing agreement that provides you a path to homeownership outside a traditional home mortgage. As a type of specialty home financing, the home buyout agreement provides for fixed monthly payments* over 40 years.

Link Home Buyout Agreements are legally structured as installment or seller-financed contracts as opposed to loans. Conventionally, banks offer you a loan and then charge you interest on the loan. The Link Home Buyout Agreement is a Shariah compliant alternative wherein the home is purchased and then sold to the customer directly.

Shariah compliance represents adherence to ethical and value-based rules founded on principles derived from Islamic law (or Shariah). One of the core principles among others is abstinence from interest. Contracts undergo screening by Islamic scholars to ensure compliance with certain standards, such as the globally recognized AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) Shariah Standards.

The Link Home Buyout Agreement was created with the help of a Shariah Board to ensure Shariah compliance for Muslim customers. Unlike a traditional mortgage, there is no loan involved in this agreement. Instead, we fully purchase the home and then sell it to you on a deferred basis with a clearly defined markup. This type of agreement is known as a Murabaha or cost-plus sale. There is no loan and by extension, no interest involved in the transaction. The other aspects of the agreement have also been reviewed and approved by the Shariah Board to ensure Shariah compliance from top to bottom.

Qualifying is similar to a traditional mortgage, however, because this is a direct sale to the customer, adherence to third party requirements (like Fannie Mae or Freddie Mac) are not required. Items such as income from self-employment, second jobs, duration of employment, citizenship and other such items allow for higher approval levels under a Link financing program. A minimum credit score of 600 to 660 is generally required along with other qualifying conditions.

After applying for and receiving pre-approval for financing, you will enter an agency agreement with us to select a home to purchase. Any home passing professional inspection and within your approved maximum purchase price is eligible. Customers typically utilize local real estate agents for assistance. Once the home selection is finalized, you will sign a promise to purchase the home from us. We will then purchase the home and sell it to you at a deferred price through the Link Home Buyout Agreement. You move in once your home buyout agreement is signed.

Our dedicated agency will hold title during the contract term. You will be granted equitable ownership of the home upon signing the Link Home Buyout Agreement. In many markets, a memorandum of contract is filed with the local county noting your interest in the property on title. However, the physical title will only be transferred when your purchase is complete upon payment of the final installment of the Link Home Buyout Agreement.

Costs can be divided into financing costs and third-party costs. Financing costs are what you pay us as part of your monthly payments. See monthly payment details below. Third party costs include the costs of property inspections, appraisals, security deposits, and other settlement fees. Speak to your home finance specialist for more information on your specific costs.

The monthly payment consists of a fixed payment that includes a risk premium and buyout amount (that applies toward the purchase buyout). The payment also includes an escrow amount for property taxes, required insurance, and servicing charges. *Annual increases in the escrow amount for property taxes, insurance and other third-party charges will occur.

A minimum of 10% of the home price is required as a down payment.

Yes, you are allowed to pay off the contract early by paying off the Total Sales Price in its entirety at any time. At our own discretion, we may waive all or a portion of the difference between the Total Sales Price and Buyout Amount. There is no prepayment penalty. Speak to your home finance specialist for more information regarding these amounts.

Yes, there are late payment charges if your monthly payment is paid after the 5th of the month. However, it is a fixed charge that is not an arbitrary percentage of the monthly payment. Furthermore, its purpose is only to cover the costs that arise from the late payment. Any proceeds collected above our costs will be donated to charity on your behalf.

We will try our best to work out a solution with you, but in the event that the default cannot be cured, we will have to resort to other remedies such as termination of the contract, eviction, foreclosure, or other available remedies. Should you have difficulties making your payments, financial counselling is available and a payment hardship warranty is included in your contract.

Similar to any other homeowner and traditional mortgage, you are responsible for maintaining and repairing the property. Before we purchase the home, you are required to have a third-party inspector review the home for your purposes. A home warranty is required to cover major systems and minor repairs. Renters insurance is required to cover your personal contents and liability. Home warranty and renter’s insurance are not included in your monthly payment obligation. Hazard insurance is required and held in our dedicated agency’s name with payments included in your monthly obligation. Any required deductibles for covered items are your responsibility.