A credit score of 680 with a high debt-to-income ratio and sporadic income reported on 1099s from multiple employers could have meant the end of one couple’s dream of owning a single-family home until they met Ruben Benjaminoff. As a loan specialist at MortgageDepot, Ruben knew that obtaining financing would be a challenge, but he came up with solutions that allowed the couple to close on the purchase of their new home.
Challenges needing solutions
Ruben knew that qualifying for a 30-year fixed-rate conventional mortgage would be a challenge for the borrowers. Even if a lender could be convinced that the husband had a consistent income despite 1099s from different employers, the husband’s 680 FICO score would result in an interest rate that would be too high for his already tight debt-to-income ratio.
Meeting the challenges
The couple closed on a 30-year fixed-rate conventional loan after Ruben worked with them to prove to the lender that moving from one employer to another did not change the fact that the husband’s income remained consistent. Ruben also worked with the couple to improve the husband’s credit score to 685 to qualify for a loan rate that fit within their DTI ratio.
The couple’s high DTI created another challenge when the time came to obtain flood and homeowners insurance to close on the loan. The premiums were too high. Ruben helped his clients find a company offering a lower premium for the insurance.
MortgageDepot has solutions for financing challenges
The mortgage professionals at MortgageDepot are dedicated to finding mortgage products to satisfy the needs of each borrower. Contact Ruben or one of the other loan specialists at MortgageDepot.