Question Details

Jim Olive, Real Estate Pro in Key West, FL

How to help buyer with financing issues.?

Asked by Jim Olive, Key West, FL Thu Dec 27, 2012

I have a client who's a great person, but is having trouble qualifying for a loan big enough for the house he wants. He's the type that I don't believe would ever walk away from a debt and strikes me as a hard worker. I've sent him to the mortgage bankers I normally recommend and they are still coming up short. His life partner, with whom he lives, is an earner, but her income cannot be included because they aren't married and she has not been in the country long enough to establish credit of her own. They are squandering a LOT of money on rent on a home that is insufficient for their needs, and the rental market in Key West is very difficult to find a good solution. Any suggestions on how I can help him? (asside from any silly "equity forfeiture" schemes or solid, old fashion advice on scrimping and saving and working toward your eventual goal)??

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I had a similar situation with one of my buyers. The solution they went for was to use some of the money from their 401K to fund the purchase.
0 votes Thank Flag Link Thu Dec 27, 2012
The answers to questions like this are usually easy, as long as they are not our clients at the time; more money, less house, better credit.
How long has the SO been in the US? Depending on her status and the lender there may be some options to use her. There are some lenders who focus on immigrant loans. They sometimes pull credit from the home country; get letters from the US employer to verify job status and Visa status.
Another thought is that is he has debt which is limiting his DTI, can she pay some or all of it off? This would increase the buying power. If he has a car payment, and she needs credit she may be able to buy the car, put half down and get a lender to finance the balance building her credit and alleviating his debt.
0 votes Thank Flag Link Thu Dec 27, 2012
Yeah, you can do what some of my investor clients do -- offer seller financing. If you really believe in this guy, then put your own money or credit on the line. Buy a home he likes and provide him private financing.

It would be a win-win. He'd get a home instead of paying rent. You'll be able to help a great person and earn a good return on your money.
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0 votes Thank Flag Link Thu Dec 27, 2012
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