Mary is retired; her family home was just too big for her and it was time to downsize. Her husband passed away and she wanted to move into a condo. Her income was limited to a small pension and social security, so qualifying for a home loan would be tough.
The Situation
Credit score: 812
Owned her home free and clear with value ~ $400,000
About $2900/mo total income between social security and pension.
Needed/wanted to downsize to a condo for $269,000
The Challenge
Mary was not in a position to sell her home first and use the proceeds to pay cash for the new condo. She had pets and nowhere to go in the meantime.
She would never be able to get a contingent offer accepted.
Her income didn’t support a traditional conventional loan + a bridge loan + taxes and insurance on both properties.
How We Structured It
Cross-Collateral, short-term, bridge loan with zero out-of-pocket and no payments.
We placed a lien on her departing residence AND on the new condo.
Once her departing home is sold, the cross-collateral loan is paid off, and she owns the condo free and clear.
Nothing for her out-of-pocket.
No payments are required.
Why This Might Matter
Most banks have bridge loan options, but sometimes the debt ratios still don’t work.
Pattern To Watch For
Credit scores over 640
Plans to pay off the new loan as soon as the old home sells.
May have limited income
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
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
VA Construction loans
FHA Construction loans
What I Typically Don’t Do
Manufactured homes under $150K loan amount
Raw land purchases
Construction loans under $300K
One case study per week showing scenarios we’ve been able to help with