Realtors are GREAT for referrals to lenders (like you and me), but qualifying a Realtor themselves can be challenging at times.
The Scenario:
A Realtor was initially referred to me because he had massive write-offs on his 1040’s. His bank couldn’t approval his loan based on the reported taxable income, but this was only one of the problems.
He was building a second home, acting as his own general contractor, and doing it cash with no construction loan.
He ran out of money. The outside of the home was gorgeous, sitting on lakefront, but the inside still needed a lot of work.
Normally, we do an AVM for HELOCs, but in this case, there was no data available for the AVM to generate a value because it’s a brand new home. Our next option was to do a drive-by appraisal, which came in at $1.3MM.
We used bank statement deposits for qualifying income (no tax returns required).
The deal closed in about 10 days for $300,000. He’s ecstatic that he can finish his project.
Why this might matter
Most banks use full tax returns for self-employed borrowers and a full appraisal is usually done to verify acceptable collateral. If your client has good credit and equity, there may still be additional options for income and collateral verification.
Work with me
Do you have a deal that you think might be approvable but doesn’t fit in the box at your bank or credit union? Reply to this email or call/text me at 616.298.2743 for a same-day answer.
One case study per week showing scenarios we’ve been able to help with