Hard Money Lender

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?



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?


Scott Miller