Hardest loan I’ve ever done… signing today

Today is a pretty good day.  One of the hardest loans I’ve ever gotten approved is signing loan documents today.

Thanks to an FHA backed loan which was fully underwritten and poses limited risk to the bank; a client with 3.5% down, very troubled credit, and $100 in her checking account gets to own a house by Friday.

It took three months, a very understanding realtor, the continued patience of all parties involved, and a $35,000 gift from the clients family… but in the end, the deal closed.

The first step was to get a gift from the family large enough to pay off all of the clients unsecured debt.  By paying off a total of $10,000 in credit card debt, and closing the correct accounts, we were able to raise the clients credit score by over 100 points.  This alone made the underwriter feel much more confident about the deal.

Second, we showed that the client made more than enough money to service the debt of the new house.  We explained that the borrower had not been a good saver due to her student loan obligations and unsecured credit card debt which had recently been paid off in full.

I feel good that  it’s a solid loan that was fully underwritten, poses little risk of ever going into foreclosure, and allows a young lady to become more financially secure.  Furthermore, the client now gets to keep more of her earnings due to the tax benefits of owning versus renting.

Today is a pretty good day.

As always, if you need information on starting a new loan for the purchase or refinance of your home, contact me at  TrustYourLender@gmail.com