Joseph and Carrie are currently living in a mobile home park and desperately want to move to a better neighborhood. Their Chapter 7 bankruptcy discharged one year ago made this a challenge.
The Situation
Credit scores: 640 and 646
Chapter 7 Bankruptcy Discharged only one year ago.
Owns a mobile home in a park, valued ~ $35,000.
Urgently wants to move to a better neighborhood for their kids.
The Challenge
DU/LP AUS approval is not possible until 2 years seasoning on the discharge.
Manual approval requires an aggressive lender with policies that allow for underwriter discretion on manual approval.
How We Structured It
FHA purchase, subject to the sale of mobile home in park, manual underwriting.
We fully processed and underwrote this file with a TBD address.
An LOX was included in the u/w submission explaining how Carrie’s medical problems and Joseph’s wood-cutting injury were one-time events leading to the BK7 and not a result of financial mismanagement.
The underwriter reviewed the file and determined that manual approval is possible.
We issued their pre-approval letter yesterday and they’re actively looking for a home.
Why This Might Matter
Manual underwriting on an FHA loan with one year out of bankruptcy is a hard-stop for many banks and credit unions.
Pattern To Watch For
Bankruptcy under the 2-year seasoning requirement for AUS.
Re-Established credit since the BK.
“Make Sense” deals that you feel should be approved but don’t fit in the box at your company.
If you've got a client who needs manual underwriting, there's often a way to get it done.
Work With Me
Do you have a deal that doesn’t fit your credit policy but the client seems solid?
Reply to this email or call me at 616.298.2743 for a same-day answer.
What I Specialize In
Bridge loans with no payment so the borrower can qualify to buy before selling.
HELOCs (complex income, credit issues, or property condition challenges)
VA loans with high DTI or non-traditional income
Low credit scores with compensating factors (equity, down payment, strong income)
Recent self-employment with documentable income
Non-QM and investor DSCR loans
What I Typically Don’t Do
Raw land purchases
Construction loans under $300K
One case study per week showing scenarios we’ve been able to help with