K. Marie Poe, JFYI, Secondary market, Fannie Mae will accept a professional who has verifiable employment within 90 days who has sufficient cash under certain circumstances;
1. Getting out of college and no past steady employment history
2. Getting out of military service
3. Having been on a religious mission/studies
4. Leaving the work force for the care of a child or parent
These are done with letters of explanation, I have done them and have had them funded and closed.
This is an underwriting issue and not many Realtors are exposed to these unique issues. Many lenders can make such decisions and hold the loan in wholesale blocks to be sold at a later date.
Among such professionals funded with this issue (current employment) has been a doctor, a lawyer, an engineer, a pilot and an FBI Agent. The length of time out of the work force is also considered, generally I would say less than 5 years because that is the longest period I have successfully accomplished this and she was an attorney, who had a corporate job starting having gotten out for the care of her child.
This does not apply to those who have lost a job and undergraduate type professionals without specialized experience. Graduate students, Phds, M.D.s J.D.s have a much better mortgage payment experience than the general population.
But, bad things do happen to good people and that's what we have here, so this exception, as I said above will not be applicable in this case.
If anyone would care to research this, look to the requirements to be met at the time the loan is sold into the secondary market by a wholesale mortgage underwriter. Underwriting latitude. :)
Sorry Karen, I'm afraid a new corporation won't cut it, it will have no credit history as a commercial loan and the loan would need to be personally guaranteed which then brings the credit issues of the guarantor into the picture.
As K. Marie points out, private money is the best option, but not unless she can find a lender and asking peers could be difficult around work.
It also appears we have an issue with any loan to value with limited funds, another situation that a private lender/friend could overlook but not a hard money lender.
Until we get some feedback from the listing agent on what the seller might be willing to do, it's kind of dead in the water, unless private funds can b located or a straw buyer comes forward and then re-sells the property.