Finance options with 3-yr severance and cash but no income now.

[John Dowling]

I have a good friend to whom I'd like to give some good advice.

He was recently let go from a job (of 25 years) where he made $50,000 and had the exclusive use of a nice house. As severance he has a guaranteed salary plus $2000 housing allowance for three years. This was a part-time job. He is also self-employed but has been too "aggressive" with expenses and shown little profit (I know, I know, but can't undo that now.)

Three mortgage brokers have told him there is NO WAY he'll be able to get a mortgage. Seems a bit harsh. Do mortgage brokers look into non qualified mortgages (non-QM)?

He could put down 20% on a $300,000 house. He is hoping to buy a nice little SFH northwest of Chicago.

He is widower and 60 yrs old with no thoughts of retiring. He is a very skilled in his field and LOVES it. I have no doubt whatsoever that he'll be able to make a nice living plying his expertise on a freelance basis. As mentioned, he has done so for years on the side... 
In other words I'm sure that within a year he'll be at least matching this income and still be getting the severance.

If a regular mortgage is out of the question I'm thinking of other options and would love to some the BP-folk advice.

1. Non-QM loan. I was looking at Neighborhood Loans. Are they legit? Other options?

2.Private capital for 3 years. And within that time establish bankable income to refinance a traditional mortgage then.

3. Find a Sub-to or owner-finance situation. Morby Chase makes it sound easy but....

That's what I've come up with. Am I missing something obvious? 

Really trying to think "How" can we do this rather than "Here's why this won't work."

Thanks