Rental Property Investor · Boston, MA · Member since 2020 · 27 posts · 12 votes
I am struggling with getting a loan due to a temp job/working with a staffing agency. My offer got accepted on a house and I was suppose to close on Dec 10th. Today, I receive a phone call from my lender saying that I am unable to get a loan because my employer now is a staffing agency and I am contractor for the government. I am guarantee a year worth of work with intent to extend. I have no clue what to do and I would love some advice. Have any of you gone through this? I do not want to lose this house.
Buy and Hold Investor · Cranston, RI · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Michelle Paulsen if you’re trying to keep this particular house then you’ll probably have to either find some way to appease your lender (ask, what would it take to make this loan approvable?), or get an extension from the seller to restart the loan process with another lender.
You might think that the latter wouldn’t be possible but you never know what’s going on with the seller; maybe their moving plans are taking longer than anticipated and they’d appreciate the extra time too, or maybe they’d like the sale in 2021 tax year instead of 2020, etc.
Specialist · Huntsville, AL · Member since 2020 · 200 posts · 105 votes
5y
@Michelle Paulsen Do you have the ability to add a co borrower? Some banks may make an exception with work history and bank statements showing income and a larger down payment. I work with multiple lenders that dont look at income, they look at credit and the asset, its 20% down for a purchase and you will need to start an LLC, but it could help save the house, and then you will already have the LLC ready for the next investment deal. Connect with me and let me know how I can help.
Rental Property Investor · Boston, MA · Member since 2020 · 27 posts · 12 votes
5y
@David Robinson I can add a co-borrower, but my issue is the 20% down. I got accepted on a 5% down conventional loan and that fits perfectly with my financials. I could not afford a 20% down payment. Is there a different way?
What type of lender are you working with? If it is a big bank (wells fargo, US Bank, Etc.) I would move on to a different option. A mortgage broker would be a great start, otherwise I would begin calling around to a handful of small, local lenders until you find someone who will work with your situation. At minimum receive a few different perspectives before giving up hope!
Buy and Hold Investor · Cranston, RI · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Michelle Paulsen if you’re trying to keep this particular house then you’ll probably have to either find some way to appease your lender (ask, what would it take to make this loan approvable?), or get an extension from the seller to restart the loan process with another lender.
You might think that the latter wouldn’t be possible but you never know what’s going on with the seller; maybe their moving plans are taking longer than anticipated and they’d appreciate the extra time too, or maybe they’d like the sale in 2021 tax year instead of 2020, etc.
Buy and Hold Investor · Cranston, RI · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Michelle Paulsen you might want to talk to your agent (or the listing agent, if you didn’t use a buyer’s agent) too, as they or their broker may have seen a situation like yours before, and they have a vested interest in helping your sale go through 😊
Specialist · Huntsville, AL · Member since 2020 · 200 posts · 105 votes
5y
@Michelle Paulsen The lender you are working with could add a co borrower, worth a try, depends if they are allowing any of your income to help with debt to income. The income and the debts of the co borrower will be a factor once added. Checking with other local banks can help too, being a government contractor do you have a credit union that you could talk to.
Buy and Hold Investor · Cranston, RI · Member since 2013 · 1k+ posts · 1k+ votes
5y
If this is going to be an owner-occupied property then most hard money lenders are going to be an immediate no on the loan. If it's not owner-occupied then I agree it's an option, but rates are usually considerably higher than banks so it could be a challenge to find a HML rate & payment that would work.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
5y
Credit to you for not giving up and trying to figure out a creative solution to get the deal done. A lot of people just throw up their hands in this situation and give up. Best of luck.
Rental Property Investor · Boston, MA · Member since 2020 · 27 posts · 12 votes
5y
@David Robinson I will check into the credit union! And how would I set up an LLC? Is that a long process? I would love to chat with you about that option. I found some investors that would help me out with a 20% down payment
Lender · Spokane, WA · Member since 2020 · 10 posts · 4 votes
5y
@Michelle Paulsen sorry to hear about this! Your lender should have caught this at the very beginning before giving a pre-approval. Is your job 1099 or W2?
Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
5y
@Michelle Paulsen
Hi Michelle,
Not being bankable by one bank doesn’t mean that another bank will deny you. You should call around. There will be someone who would be able to give you the loan. If you have exhausted all lenders within your area (don’t forget credit unions). You can then try and find a co borrower for the loan.