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bragloans
27 Posts |
 Posted - 06/30/2008 : 09:39:32 AM
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One of our lenders just declined a good file because the client has 2 income properties that appear underwater. The 2 properties are making him a profit in room rents. He pays taxes on those profits.
ELSE:
680 fico, full doc
5% down
30 dti
5 years on the same job
He is renting at 2500$/month (while owning two investment properties)
Wants to PURCHASE an owner occupied. (save money and closer to work for gas savings).
*FHA will not take a trustee or affidavit to prove he will live there.
This client guarantees he will live in new property.
Who has a solution? Or who has NOO at 5%?
location: san joaquin county, california.
Thank you,
Brian King
209.430 0383
brian@bragloans.com |
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JoefromPhilly
455 Posts |
Posted - 06/30/2008 : 09:49:55 AM
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Where are these under-water properties? Near the Mississippi River in Iowa or Missouri?
- Joe |
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dkendall1979
8732 Posts |
Posted - 06/30/2008 : 09:53:07 AM
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Why don't you package the loan air tight and submit it to your lender of choice?
Get 12 months cancelled checks for the $2500/mo rent. Print out a map of the distance of the new purchase to his work. Get the last 3 months cancelled checks for the rents received on the 2 other noo properties.
Create such and air tight file that the underwriter would feel stupid to assume it was going to be another NOO. |
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bragloans
27 Posts |
Posted - 06/30/2008 : 10:02:24 AM
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(I'll take commentary) (Yes, I understand that many are avoiding forclosure by buying a new house)
Just spoke to 2 lenders. One cited the Wall Street Journal article glamourizing the ditch & upgrade. The other cited that they couldn't even do it as NOO if client has bought two investment properties in last year.
What's sadly disgusting is this effects good clients because so many are ditching their mortgage for a bigger house. This one is not. And the underwriters are not taking exceptions. |
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bragloans
27 Posts |
Posted - 06/30/2008 : 10:04:36 AM
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quote:
Originally posted by dkendall1979
Why don't you package the loan air tight and submit it to your lender of choice?
Get 12 months cancelled checks for the $2500/mo rent. Print out a map of the distance of the new purchase to his work. Get the last 3 months cancelled checks for the rents received on the 2 other noo properties.
Create such and air tight file that the underwriter would feel stupid to assume it was going to be another NOO.
LOVE YOUR IDEA. Already did this. The underwriting in this area is air tight on this _new_ issue with 3 banks. Since it is a _new issue_ in this area (forclosure capitol of the US)... I havent found any exceptions yet.
hmmf |
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nowbroker
1064 Posts |
Posted - 06/30/2008 : 10:53:37 AM
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| Either this new property clearly does not make sense as a SFR for the borrower (buying down) OR if the other properties are multi family, it may exceed the FHA rule of a maximum of seven units in a contiguous area (a little known FHA quirky rule). |
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