Yep, these can still be done and many Loan Officers and people are not looking in the right place.  Great Job.

Thanks for the resource, Ted. Was this a case of great assets?

Ilyce,

Actually this was a case of practically no assets whatsoever.  1,500 in a 401(k) was all he had.  Used a gift from his Mother and seller's concessions to provide the resources to close.

Congratulations Ted. Let this be a lesson to all real estate professionals

Ted -  I always try DU first. My community is very forgiving as far as credit is concerned. In most cases. Every now and then you think you have a slam dunk and then you just have to shake your head because a refer keeps popping up. Also keep in mind that lenders can manipulate their tolerances within Fannie and Freddie. So just because one investor gives you a refer, another may take the deal.

The problem I see now is that the MI companies are now requiring a minimum credit score.  

Hey Ted, nice job on getting this closed.  There had to be some compensating factors in there somewhere? 

Gary - it's certainly a lesson for me.  Don't say "no" on behalf of the AUS's - make them say it themselves.

Lewis - I agree with the negotiated variances point - although in this case I did receive an EA/III on D.O. from the get-go.  I've been lucky with the MI so far - most of my D.O files go through BoA and WAMU which have some pretty strong MI waivers I believe.  BoA having a waiver that allows an Approve/Eligible My Community with a less than 620 score to still pay A+ instead of A- rates is huge.

Andrew - he did have 9 years on the job, and the DTI was 45%.  His little 401(k) balance did constitute a month's worth of PITI reserves.  And then there was the "hidden" benefit of this being a LMIB in a LMICT.  Add it all up and it's still a semi-miracle in my book.