We’re living in a time when home money lenders are becoming more and more flexible, in order to allow buyers of all types to qualify and purchase the property they desire. As noted in recent Team Move/OVM Financial blog posts, VA and USDA loan programs are much more accommodating these days for buyers such as military families and primary residence condo owners, and every lending agency has increased their loan limit ceilings in 2018.
Here are 3 other types of home buyers who have traditionally faced challenges in qualifying for loans, and are now finding accessible, creative solutions.
Business Owners — In many cases, small business owners use deductions to actually hold down their profits, but this can be a problem when a tax return income is a deciding factor for loan approvals. A good alternative is a Bank Statement Program. If potential borrowers can demonstrate they’ve been in business for at least 2 years and have robust personal and business bank statements from the past few years, they may be able to qualify to purchase a primary or secondary home, or execute a cash out refinance.
High Assets/Low Income — Some folks have a lot of assets on hand, but don’t receive or report much income. In these circumstances, qualified assets can be used to demonstrate credit worthiness. Formulas can be applied that consider checking, savings and money market accounts, stocks & bonds, and retirement assets, to arrive at an asset depletion alternative to traditional mortgage models.
Condo Ownership — Condominiums can be used for a variety of purposes and be home to a lot of different types of people and business. Accordingly, it isn’t uncommon for many to be classified as “nonwarrantable condos.” Although this means these properties will not meet traditional conforming guidelines, programs now exist for condos that don’t meet Fannie Mae or other program requirements.
Sanford’s Team Move/OVM Financial office has access to all of these, and other creative programs to help potential property owners get into the property they aspire to. Schedule an appointment to discuss your specific circumstances and objectives by calling 919-777-0114.