Sometimes a deal lands on your desk and a groan escapes your lips. My friend at a local bank went around and around on this “impossible” deal where an elderly woman needed help, and was happy to make the handoff so he could focus on other deals.
The Scenario:
Patricia just received a court order and needed cash quickly. Her sister was owed money from her portion of the inherited property, and Patricia needed to do a cash-out refinance or sell the home to comply with the court order.
She contacted her local bank and ended up at my buddy’s desk. He’s an experienced MLO, 30+ years in the business just like me.
The good news? She had a 749 credit score.
The bad news? Her fixed income was only about $1,000/mo., not enough to qualify for a loan.
Like any good MLO, my buddy asked if there was a co-signer to add more qualifying income. Patricia’s son stepped in to help, but his credit was just not good enough and his income was a little spotty as well due to job-hopping.
After trying every possible option, my buddy suggested they talk to me to see if there was an option for them to keep the house.
I was able to provide a “No Ratio” loan for Patricia, where qualifying income is not considered for loan approval. The loan is qualified based purely on LTV and credit profile.
Crisis averted.
Patricia got to keep her home.
Her sister received what was owed to her.
The son still had a place to live (he was living there)
My buddy was able to focus on deals that were better suited to his bank
Why this might matter
Every MLO encounters clients who might need help but the deal doesn’t fit in the box. Having a trusted colleague on your extended team to use as an offramp can soften the denial.
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