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Looking for Loan Answers II

By Todd Haggard

Real Estate Agent with Century 21 Nachman

September 24, 2007 07:44 AM

I am reposting this blog. I got some great feedback but I am still looking for more.

Reaching out to all my fellow Active Rain people. I have a client that Him and his wife are wanting to purchase a new home, but here is where I am at with this one. First they are qualified and approved for 300 thousand now, however they are wanting a bit more 30 to 50 thousand more. Both have excellent credit above 700 for both, and they are going to utilize their VA Cert because there funding fee is waived due to percentage of disability, not a bad deal at all. The dilemma is that, there income being used is only partial of what their household income is. The wifes income and husband small pension is a what they are using to justify the 300 thousand approval, however since he retired he has been self employed for the past 18 months, less than the 2 years required. He has an average of 3-6 thousand a month from his self employment. Stated will not fly with VA.

Question is: What programs are out there to be offered to my clients????

Brainstorming at its largest.

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K C

Independent Leadership & Financial Fitness Consultant - Pleasant Grove, UT

Todd, they really don't sound pre-approved, unless of course I'm misunderstanding what your writing. The other problem I'm having with your post is, "How much can they put down?", or is the reason they are looking at a VA loan is because they have little to no money to put down? You also mention in your post that he has a disability, which one of them are disabled, is it long term? Are they getting income from the disability?

If this couple is only earning a small income from her work and his pension then how are they ever going to be able to afford a 300,000 mortgage?

Some other factors to consider. Is he 62 ? Do they have any funds to put down from another sale? Do they have adult children that would be willing to lend them the down, and then purchase the property with a reverse mortgage (no income, no credit requirements).

The only option I see right now, without more information, is that you find out what their documented income qualifies them for in terms of payment, and then have them look at homes that are more within their income level. That's the responsible thing to do.

Sep 24, 2007 08:12 AM

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