A year ago an individual came to me for a mortgage, but I couldn’t help him. His credit was a problem, he recently lost his job and didn’t have a down payment to purchase his parent’s home.
The value of the home was $400,000 and they were selling him the home for $200,000. He had worked at the same company over 20 years, but from time to time they give some of the employees a pink slip, but always brought everyone back. He had a good size retirement account, so that history was good. The credit stuff was easily fixable, as there were some medical collections that hadn’t been paid.
I introduced him to a private lender, that charged him 3 points and 10% interest only for 18 months. So, step one was he got his property. After 12 months of payments, I refinanced the mortgage and got him a 3.5% rate, which lowered his monthly payment.
The bottom line, the private lender got him the home. Yes the rate and terms were expensive, but to this man, it didn’t matter. Both parties benefited from the transaction.
By the way the private investor sends many of his clients to me, so that I can prepare them to refinance out of the loan that they are in.
check out this article for one lenders story:
By:Corey Curwick Dutton