Have a customer, 609 Credit score, result of soon to be ex-wife, wants to purchase a mobile home on 1/2 acre lot, 2.5 car det. garage (may qualify as a home, rebuilt, additions, roof, on a slab foundation, looks like a house) Turned down twice, FHA, Conv. (Conv. lender wanted 20% down and 6 mo. reserves)
Purchase Price 85k.
Has 10k to cover down payment and closing costs.
Houston, Texas
Any ideas?
Thanks,
James
What were the reasons for the declines?
Need to know more about the borrower & property…
If the borrower was turned down on a FHA loan, it could be for a number of reasons like young BK or FC, deliq. Fed debt/liens, inspection problems (an unability/unwillingness to upgrade/retrofit to HUD standards prior to funding to name a few (I’m assuming that the borrower could go FULL DOC, has a DTI within guidelines, etc.).
I have been using FHA in place of subprime for years and the manual underwriting approach allows for a lot of tolerance/flexibility—what aren’t you telling us?
Regards,
Scott Miller