At MortgageDepot, we take pride in closing loans that fall outside of the box. Through a creative approach, we are often able to meet borrowers’ needs when others cannot. This was the case recently when we closed a blanket loan for a client with no income verification and with no money down.
Overcoming Challenges for a Successful Closing
This loan request had several obstacles that we had to creatively work through. For example, the borrower was buying two family properties with no money down. We structured the loan request as a blanket loan. This means that multiple properties were covered by a single loan. With a gift of equity from the borrower’s father, the borrower did not need to put any money down. Rather than verify the applicant’s personal income, we were able to use the income generated by the property to meet the underwriting guidelines.
In addition to these challenges, several other issues presented themselves during the loan process. For example, the building department recorded several violations. We worked with the borrower to clear the issues and to obtain a Certificate of Occupancy that was required for closing. In addition, the properties had a clouded chain of title, and the properties had mortgage liens against them. We supported our client throughout the loan. Specifically, we helped him to obtain proper documentation to clear the issues and to pave the way for a smooth closing.
Excellent Loan Terms That Met Our Client’s Needs
Despite the many obstacles that needed to be overcome, the borrower’s lack of down payment funds and the need for a no-income-verification loan, we were able to meet the client’s needs. In fact, we obtained a 4 percent interest rate on a 30-year fixed-rate mortgage on behalf of the borrower.
About Boris Bast
Boris Bast is the Mortgage Loan Officer who worked with our client on this loan request. With more than 10 years of mortgage lending experience and with his passion for working through tough scenarios to achieve goals, he was the perfect loan representative to serve the clients.