Problems buying home due to income is made at home.

3 Replies

Not even sure how to start this message. We have been in the home since 2009, and after fighting the city and HOA to open a senior residential home for 18 month back in 2010 (variance was denied as HOA was against us, then HOA sued us for breaking covenants. We won both suits and even set precedence in Huntsville to do this for others) After the battles, we opened Safe Haven Senior Family Home, and are doing well. Two years in a row we have won THE BEST OF HUNTSVILLE AWARD for Residential Senior Care.

We are buying the home from the landlord at 6% interest, but want to get the home totally in our name. Home is valued around $200,000.00 and bought it for $140,000.00. Problem we are having is that since the home is operated as a business with keeping seniors in the home, no one wants to finance the home for us, without a huge down payment of thousands of dollars. Quicken Loans will not even consider it. Quizzle says our credit score is 694, FICO says 704, and Karma Credit says 720. Does anyone know of a bank or institution that would consider financing the home with less that $20,000 down, or consider working with us as an investment? We are only keep one senior at a time at $6,000 a month at this point.

If anyone has any advice, please respond. We are hoping to borrow around $160,000 so that we can make more improvements on the home, (such as adding an attic and screening in the patio. All of our savings were used up waiting for all the court battles to end back in 2009 and 2010. We do have a website for Safe Haven Senior Family Home if anyone is interested. Thank you in advance.

Always check your credit union, they dont have the over head that a bank does and actually want to help you. Best of luck with it.

Hey guys thank you both for your replies. I meant to say Credit Union. Our banking is at Alabama Credit Union at Huntsville, and they are asking for a huge down payment as well. I appreciate your replies.

Hi @Katie Fairchild

I live in the Huntsville area. It sounds like you are doing a wonderful thing for our seniors. If your home appraises for $200k and you paid $140k, that's 70% LTV. So I would think a cash out refi would be possible. Are you being pegged as commercial property by the lenders? If you've exhausted the online lenders such as, you may have to go talk with some of the smaller local banks in the area (Bryant, etc). PB

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