What do you do if you have a borrower who has a 50% down payment, no credit, not much income, but can afford the payments on a home because they have a lot of money in the bank and family to help?

I got a call from a realtor friend who was frustrated and sad for her client because she had been turned down for a loan by two banks and a mortgage broker.

She wanted to move into a 55 and over community, but her sole source of income was social security. In addition, she had not applied for credit in years and wanted to keep some of the money for the sale of her home for income and emergency reserves.

They were so relieved when I told them I had a solution!

There’s a loan program that most people think of as a refinance loan but can be used to buy a home, though few think of it.

It’s also a loan program that most banks and brokers don’t provide so they don’t talk about it. What is it?

The Reverse Mortgage.

The reverse mortgage does not qualify on income or credit but on age and equity.

With an ability to pay test, (That is, is there enough income or resources to make the payment), a 100% debt ratio is okif the borrower has resources like cash in the bank. Which my borrower did.

She is now going to be a happy homeowner in a nice community and less hassle than owning the family home.

If you know someone who thinks that they can’t qualify for a home, please introduce us so I can help them too!

To learn more about the reverse mortgage program please go to my website www.athenapaquette.com