All Forum Posts by: David Kelly

@Mateo Way

Make sure your lender is excluding installment debts with 10 or less payments. Is there any other debt that is paid by someone else not on the loan over the last 12 months? If so you can remove that as well. Any debts that your business pays for? 12 months of proof will remove that.

Can you lower your homeowners insurance? Higher deductible?

How about paying off a smaller debt that has a big payment? All of these are options.

Hi @Tracy Ross

What is the timeline on when they are wanting to purchase?  There is a national program where funds become available usually in March/April every year that allows for up to 22k down payment assistance.  Its a 4 to 1 match on the money they have to put down.  So if they have $5500 they can get an additional 22k towards down payment/closing costs.

How much has the value gone up after renovation?  If its not much then the delayed financing option might be best.  Also, you should provide the purchase price since some lenders will not lend below 100k

Just to confirm, the multifamily mortgage does not show up on your personal credit report, correct?  

@Stacy Raskin

It is his Primary residence. I am going to get a couple docs from him today hopefully and see where DTI is. I requested the credit report, Mortgage statement, and his SS award letter. I will get in touch with you once I have that. Thanks for the response!

Does anyone have any recommendations on a lender that can work with this scenario?

Fixed Social security income 

DTI is slightly higher than what would normally be approved (I don't offer HELOCs or I would have tried to help the guy)

50% equity in the home and only needs 25K to put towards higher interest credit cards

Value of the home around 600k in Naples.  Only owes about 300k

I believe he said his fico score was just under 700

Are you a first time Homebuyer?  There are available grants that can be used.  One of which allows for up to $22,000 towards down payment and closing costs.  

You can get pre-approved based on your current income and what you expect the terms to be.  This would also give you time to fix anything that needs to be fixed as far as credit or liabilities to qualify.  The approval that we run wont exactly come back with the loan being approved based on loan limits currently but as long as the lender you are working with knows the guidelines you should be able to know ahead of time.  You may need to run your credit later on again since that expires, but at least you would be less likely to run into a problem when you are ready to buy.

@Jillian Shuler 

Portfolio loan - 85% LTV - 1-4 units cash out - No Mortgage insurance. Must meet a minimum 720 fico score, and under 43% DTI. If you are married, the spouse must also provide the info for qualifying. I can get exceptions on some of these, so it may be worth looking into. There does not always need to be a 6 month seasoning period if you have some "skin" in the game on the refinance. Lending in most states with this program. There's a few we exclude.

Yes, there is a chance of being turned down based on the new jobs income. It is like going thru the approval process again when you do a refinance. VA loans have a different route on this however, no income docs are needed on an IRRRL.