Hello,I’ve got a deal in TX with a borrower whose FICO is 503. His income is terriffic, $107,000; he’s had this job for 8 years. He’s got a house w/ a private mortgage, he’s lived there since 1999. We could treat it like a refi, or like a purchase as though he’s been paying glorified rent to a private party. He paid cash most months so there’s no rental history, therefore I can’t use Long Beach. His credit is down because he helps run a wildlife sanctuary, and he’s been supporting it with his day job. It’s a 501C3… He, his wife, and another person are the chairpeople of the board for the sanctuary. Income from visitors suffered within the past year because of some slanderous & untrue articles in papers and on TV — the company is suing them for slander and defamation of character. Heshould be getting a settlement but doesn’t know when.
The same person holds the mortgage to his house and also the note on the sanctuary itself. We want to pay off the guy on the house… in a perfect world, we could pay off the house and the sanctuary. Home value $110K, owes $83K on it…
Try FHA with the lack of showing hard payment history on housing history. What is your definition of credit being down? If your home value is 110k, will the FHA (a little more conservative) appraisal support the value and will the LTV suffice? It sounds like it should jive. If he currently has no vested interest in the property (no deed transfer, etc.) than you can probably treat the transaction as a purchase just so long as the seller is willing to work with the sale structure and considering that he only desires to net 83k. Sounds like the makings of a profitable transaction for you…Andrew