California FHA loans require documentation – a lot of documentation. That’s a good thing, in my opinion. This compilation of paperwork is typically sent in by fax by my clients. The problem is – trying to fit a Stainless Steel Kitchen Sink through the fax. At least that’s what it seems like you have to do now.
One of my clients, Mr. Dylan, faced a dilemma like this – although it had nothing to do with a fax or a sink. No, his problem was a bit larger than that.
Mr. Dylan had a home in Menifee, CA that was underwater in loan to value (value significantly lower than his current mortgage balance). Of course he wanted to buy another primary residence, however, this residence was a Condominium in Ladera Ranch, CA that required a spot approval.
Most FHA lenders and HUD have an issue with homes underwater when attempting to buy another. They feel the departing residence will be deserted, plus he’s “trading down” in size from a single family residence to a condo. What’s a guy to do? Well, he was able to afford both payments, his debt to income ratios were in line, and his situation made sense.
Mr. Dylan came to me through a referral from a real estate agent partner who said “if Jonas can’t do this, no one can.”
The cards were against my client. Instead of going around these objections we addressed each cautionary or red flag head-on by providing sufficient and supportive evidence for my client’s transfer from the Inland Empire to Orange County. For example, he was moving to OC for a position within his company that paid more; he was changing his lifestyle by moving to the highly desirable Ladera Ranch; and he showed evidence of actually renting his departing residence. Although the proof of renting his home was not a requirement, nor was it allowed for income purposes, it was a simple act of good faith. We wanted to prove to the best of our ability that this WAS NOT a buy and bail as most people would slap a label on it immediately.
Mr. Dylan and I worked together for 5 months to get approved, find a home of his liking and close the transaction. He was appreciative of my persistence, determination and most of all, my transparency. Plus, we both prefer stainless steel appliances which made him a little reluctant to give up his kitchen sink – but with that Jonas Persistence he was able to get it over to me.
Great Video from Tim Davis and friends.
Who do you know like Mr. Dylan that is purchasing a new primary residence in California that needs transparent, professional mortgage guidance?
Email me at jonas@jonasloans.com and place TRANSPARENCY in the subject line.
Look forward to hearing from you.
