BiggerPockets

What are some possibilities for securing financing now for a $499,000 house with the following "obstacles"...

1. I just filed bankruptcy;
2. I am a physician who has taken time off to raise a young child. I have a new employment contract in hand and will be making $350,000/year, but I will not start this new position for three months;
3. My fiance makes $63,000/year. His credit is average (~640);
4. The homeowner is unwilling to do a lease/purchase.

I'm looking for a solution now because I do not think that this particular house will remain on the market for very long.

Bill,

Thank you so much for your response; it gives me hope! I am happy to answer all of your questions, but I'd like to do it in a private message. Do you have to be a "colleague" in order for me to send you a private message?

Let me know and thanks again!

Back to the forum for help from everyone.

We are looking at a private investor, here. Maybe a sub-2 with a note to the seller and selling a note for cash to the seller.

Any note buyers in NEW?

Issues prevent banking, so a flipper, might buy, but they need to make some money for the deal, someone buys, perhaps with the note route, or financing and sells Contract For Deed perhaps, the deal must go to 5 years on the end buyer's side.

Seller needs cash, don't know how much. Ask that agent how much equity she needs from the transaction and you might pay a little more if the seller works with you and ensure the agent knows she will get her commission (That's what they want to know in these deals).

Karen, add what you like here and details.

I gotta run, Good Luck..... :)

Karen,

My bankruptcy was a Chapter 7 and has been discharged.

Are lenders willing to lend money to a corporation that is owned by someone who has recently filed bankruptcy? That sounds like a really easy solution! Almost too easy;).

I would be willing to use an investor. How would I go about finding one?

@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.