Does this sound familiar? A previous client had been in and out of work for 18 months. He needed money and decided he’d try borrowing against a home he owns with his siblings. Unfortunately, not only is the home being rented for under market to one of the siblings, he can’t show that he has been consistently employed. Although his wife is employed, and can carry their personal home mortgage on her salary, they couldn’t qualify for a loan.
As a result, they have been living off credit cards, raking up the debt.
His credit score had gone down a bit because of the growing debt but no late payments. Without a job, he thought he could not be helped. He asked some people at church for help, but no one could. In fact, one friend said he had a friend who lent money, but it was 10-12% interest and an upfront fee! Wow, definitely no help.
His wife said, “Hey remember Athena? She helped us with another loan. Call her.” And luckily he did.
I was able to get him a loan that was based ONLY on rental property market rents (not rent agreement, no tax returns etc.). Commercial lenders have always done it this way and now we can do it for residential properties as well.
Luckily, he was able to pay off $60,000 in credit card debt and have money to fix their principal residence which needed a new roof. The pressure is off, and he can calmly look for the next high quality job instead of settling for whatever he can get to pay the bills.
If you know someone who owns a rental property and needs a loan, but has tax returns that prevent them from qualifying, please introduce us as I may be able to help.
This is no BIG BANK loan. It’s an investor pool mortgage banker that knows what a “good risk” is. Without these types of loans, the little guy would never get financed.
Ironic that the banks we bailed out with tax dollars, and the government that made rules to try and “protect us” from bad lending, is who’s preventing the little guy from getting 4.55% financing. Thought these rates are closer to 5.5% at least they are not 10% –