Sorry Mr. Buyer, it's not you, it's the property
Even if you have a buyer with a great credit score, that doesn't mean the bank will still loan him the money. Sometimes, the property is considered too risky, not the buyer.
Recently, I've had one buyer who had a great credit score, could put 20% down, and wanted to purchase a condo to live in because he really liked the area. The problem was that the investor ratio in the condo was over 50%. Because of that, it's deemed too risky for many lenders.
So what happens? The only people that can buy the property have to buy with cash. In the case of this condo, almost all of the purchases within the last year have been all cash.
But who is paying all cash? Investors!! The cycle just continues and the ratio gets worse, because no owner-occupant can get a loan to buy it!
The solution? My solution has been to let the listing agents know that this is an issue and if they have a lender that would be willing to lend on the property. They are just as interested in selling the property and can help to find a lender. Often times, its the smaller, local banks who keep the loans in-house that would be willing to lend on the property. In our case, we were able to find a lender willing to do a 30-year fixed and (with fingers crossed) it will be closing in the next few weeks.
This is also a great lesson in making sure you have a network of multiple lenders with different specialties. You never know what type of buyer and property situation you might have.
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