I have a Client who wants to sell their home and buy another home outright, but she will be about $30k short.
Their credit is shot and they cannot get approved for a traditional mortgage loan.
It would be a 1st lien position on her next home for the $30k she needs to be able to buy it outright.
Anyone have any recommendations or know of any potential lenders?
Thank you in advance! 🙏
No traditional lender will do this deal. Unfortunately traditional lenders are driven by Income & Credit scores. If her credit is shot, traditional financing is out.
Her best option is to find a private person to lend her the cash or to do some sort of seller carry back of the amount she's short. Getting the seller to participate in this way is extremely difficult if there is a realtor involved. Without trying to offend the realtors in the group, my experience tells me that very few understand how to creatively solve a problem and pitch it to their client properly. Unfortunately, few are trained in creative financing or true negotiation. While the realtor (and lots of others as well) will disagree with me on this, when the deal needs to be done creatively, a face to face meeting with the seller is the best way to do it. If you can't get the seller to play ball this way, then you will need to find a private lender (friend/family member) who will put up the cash.
Hope this helps!
Maybe you can find them a house that costs 30k less. What a novel idea.
If their credit is shot, they probably do not need to live in a house that is beyond their means AND it seems that the house is 30k beyond their means. They are just going to struggle with higher taxes.
Since it sounds like you are the agent and you want that commission, find them a home as mentioned above where the seller will carry back something.