I represent a buyer who has a marginal credit score of 605. The only outstanding credit she has is her existing mortgage (and this lack of existing credit is hurting her); She is current on her mortgage payment. This client is in a situation where her house is being bought out by the city. It's a good deal for her as her house is now in the floodway - the city is paying her for what the house would be worth were it not in a floodway. She will have about $53K cash to work with and the city is also paying for her relocation and closing costs. We have found her a decent replacement home at $90K. She is putting $45K down.
According to her lender, even with a 50% down payment, she cannot get a loan.
My heart goes out this nice lady. She has worked hard her entire life; doesn't make a lot of money but "qualifies" for the house she wants to buy based on debt to income ratio. She is stable; has been with the same company for 18 years and has a nice balance in her 401K.
Suggestions are appreciated.
Comments(4)