Dealing With Special Situations
Despite best efforts and intent, not everyone has perfect credit, no debts and hundreds of thousands of dollars to put down on a home. In fact, I haven't met anyone that met the above description. Everyone has some sort of problem or limitation but there are ways that we can work around most. I can almost always get you in a home if the following conditions are met:
- A FICO score above 620
- Tell me up front about your special situation
- Work exclusively with me
Its critical I know up front because I then know what kind of deal to look for. And, its a lot harder for me to find just the right deal so I am reticent to work with anyone with special problems unless there is a clear understanding. The following are some examples of special problems that I've handled.
- High credit card debt and little or no cash for a down payment with a reasonable FICO score. Solution: I found a builder willing to sell a home at well below market value since it was a fall-out and they needed to get it off the books. They permitted the use of an outside mortgage company. It was set up so that 24 hours after the home loan closed a HELOC (home equity line of credit) was closed for the instant equity in the home (>$50,000) to pay off the credit card debts. Yes, they got that much cash back shortly after closing with zero down. This took a lot of negotiating but is an example of what can be done.
- High credit score, little or no cash, second home. In most cases, mortgage companies what 5% or 10% down on second homes. In this case I was able to negotiate 0% down and a good rate for the first and second.
- Low initial payment with the ability to pay on the debt as funds became available. I arranged an interest only loan at a good rate for both a first (80%) and a second (20%) loan. The interest only loan offers a low payment and any amount you pay over the interest only payment is applied to the principal and it reduces the loan amount and thus the monthly payment.
The above are only three examples of what can be done. The critical factors in all cases that I know the client's situation going in. Otherwise, it would have been a waste of everyone's time since whatever financial problem exists will come out during the loan application process.
Eric Fernwood
Eric@ISellLVHomes.com
702-358-8884
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