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Roxie Hollingford had a plan. Several years ago she took a calculated risk, sold her home and used some of the proceeds to start her own catering business. Hard work, long hours, and high quality food were her business model. With the remainder of the proceeds from the sale of her home, she saved for the day when her business was established and she could buy again. Break out the Tiki torches. Five years down the road, Roxie found herself literally down the road - just on the other side of town from her parents. She's eyed a 3-bedroom, 2-bath, 2,200 square foot home with a big back yard and a redwood deck. It was perfect for her love of entertaining. And it made all of her hard work seem worthwhile. Roxy fell out of Conventional & Government Loan Guidelines because of her high Debt to Income Ratio and her need for a bank statement loan program. With a closer look and a gift of 10% down from her parents, a knowledgable Mortgage Broker was able to make this loan happen. Here are the particulars:
Now in her new home, Roxie has a place for everything and everything is in its place. That example is just one of many situations that make a Bank Statement Program viable for Self-Employed Individuals. When the time came that her financial situation was that so she could buy another home, Roxie may have gotten concerned. Conventional & Government Loans really didn't have a product for her situation anymore. Roxie put her situation into the hands of help. A Mortgage Professional, staying in tune with the everchanging pulse of Loan Products available on the Market, knew the exact program to fulfill her specific needs. Self-Employed Individuals have felt some of the wrath of stricter qualifying guidelines on Mortgage Loans. Yet, hope is not lost. If you are unable to document your income in the traditional capacity (W-2's, pay-stubs, 1099's, etc) Bank Statement Programs are still available. Talk to a Mortgage Professional to explore your options and explore the details of such a program. Whether you are looking to buy a home or refinance the current one you are living in, don't let your particular situation mess with your groove. Consult an expert in Mortgages, if nothing more we can at least guide you in the right direction with a plan. Happy Memorial Day Weekend To All~
Jason Sardi A Pretty 'Groovy' Mortgage Professional First Choice Equity Group Inc. 610-439-2166 ext. 229
Licensed with the Pennsylvania Department of Banking
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How Roxie Got Her Groove Back!
35 comments • Jason Sardi, Mortgage Banker • May 25 2008 01:22PMComments
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Jason~ I like the story about Roxie. And yes you are pretty "groovy" (Imagine being Groovy on a Sunday afternoon too!) LOL.
Vickie - I was going to do this whole 'Brady Bunch Inspired' style post, opted not too. I kind of dig that song though, perhaps I should of added a link to it in the post:-)
I know the pain about being self employed and the tax return. I have a lot of clients with cash but no income to show.
Jason,
If I required a mortgage in your area, I would definitely be calling you....your knowledge in this area seems very thorough and you have all of the different routes to home ownership mapped out. I see that is especially important for self-employed individuals to seek out someone with your skill, knowledge and creativity when thinking of buying.
Jo
Roxie rolled those rocks of risk and reaped the reward. No better success story than someone betting on themselves and never looking back. Awesome.
Adam - And these types of programs are perfect for them!!!
Jo-Anne - Thanks, that's means a lot coming from you. There will always be more than one way to skin the proverbial cat, it's products like these that allow those folks outside the 'Norm' to get help in attaining their goal.
Lenza - There's numerous stories I've heard and been a part of like this example. You're right, I love stories about folks taking that risk, betting on themselves, and rising like a Phoenix to their own dreams.
Jason - Great success story. Really liked the human touch. Glad you didn't choose to do a Brady Bunch style post, however, do now have the theme stuck in my head.
Sandra - For your Holiday Weekend Pleasure :-)
Jason... It's nice that you can help such a diversified bunch of people but I've never felt very sympathetic to the cash rich paper poor people. From my limited perspective if they are making money and unable to document the funds it implies they are playing tax games to avoid payment and therefore sticking me with a disproportionately large bill.
Jason, one problem with loans for the self-employed has always been what you're showing as income. A good tax guy can make someone who's making a decent living look like they might be eligible for food stamps! And that, of course, totally messes with your loan to value ratio. Sounds like your lady got a great program.
I never cease to be amazed at how many different ways you know of to get people into homes. If every mortgage professional could perform these little miracles, I wonder whether we would be in a different position with the market today. Most people I talk to these days just assume they can't qualify for anything, and believe that all non-conventional means of financing are dead. But they aren't - and you do a wonderful job of getting that message out there.
I think you're pretty groovy :)
Jason, if anybody could help, I know you can! Nice story. It's great to see a happy ending!
Dan - You raise an interesting and very relevant point. I remember we went over this awhile back, I still need to do a post on that. I need a good Attorney though, where's Brian Block when you need him?
Patricia - Oh, you would love the stories I could tell you about conversations with certain accountants. This is a Bank Statement Program though, NOT a Stated Income Loan. Have a wonderful weekend!
Jennifer - I pride myself on keeping them there as well:-) Thank you sweetie! There is still opportunity available, that's for sure.
Susan - Yes it is, this was a merely an example based upon more than a few true stories. Thanks!
Jason - great post letting the self-employed know that there are options out there! I have been following your posts for quite some time and I always am left with just a little more knowledge than the last time - thanks for that!
Sardi- Great to know that you place that self employed borrower. My middle name this year changed from Earl to FHA.
Awesome job on helping a good client get into a home again.
Jason,
From the perspective of a 'title guy'...was her name Roxie, Roxy, Roxanne, or...I like getting the names correct from the beginning!!! :^) Thanks, Fran
Roxie never lost her groove as she only set it aside for a time but it was always there and when she was ready she sought a Professional to help her make the Groove Better.
Hi Jason,
Nice to know you were able to help in this situation. Btw, who says "groovy" these days...;)
Roxie was further helped by having wealthy parents. So many people could never come up with that hefty down payment...nor could their parents. Good story though.
Love a happy ending! Good story - and good info for potential buyers, thank you.
I especially liked this post as it goes about helping many to understand some of the possibilities that exist. You put the right words that will help many and if even we have to do these things one at a time , do them we will. Very informative and a hopeful post for many that haven't seen any in a while. Great Job and thanks for the lift up for many needing this.
Jason - way to go.... nice to see you - sorry I have been away more than I have been here
Jason - gee thanks....having that song stuck in my head is sooo much better.
Jason, great success story. I had not heard of bank statement loans. But, with so many self employed people in our country it is good to know. The stated loans were actually started for them and got abused. Thanks for the heads up !
Good job to the knowledgable mortgage professional. And we have a dog named Roxie... cute but doesn't play well with others. I think your Roxie is better at playing well with others.
Leesa - As always, thanks for reading. I hope you're having an enjoyable weekend!
Gary - FHA is certainly a player in this and any other Market.
Fran - Got ya. For purposes of 'Title' ... Roxanne would be the ticket:-)
Cameron - It's all about the grooooooooove ...
Suzanne - Don't you know, I'm the barometer for 'trendy' these days. Actually, if that were the case, the trendy world would be going bankrupt:-)
Barbara - Not all that long ago, down payments were necessary. Outside of VA loans, we are there yet again. The issue becomes that home prices have increased and incomes across the board haven't necessarily followed suit. I understand your point, financial education will continue to remain key in this capitalistic world we live in ...
Virginia - Thanks for stopping by!
William - We are living in a 'One Step at a time Market'. There's a lot of product still out there for a lot of people, it's up to us to let them know of the variety of options still available.
Thesa - Duty calls my dear, I understand. Nice to see you as well.
Sandra - Between that and having to see Dan dance around the house in the attire he put out there in his last post, your existence is becoming even less enviable ;-)
Missy - Yes they did get abused. I should note, there are programs out there that will not only allow for personal bank statements, but business bank statements as well.
Lane - I think I may fear your Roxie:-)
Sardi, Excellent job! Congrats to Roxie and yourself.
Congratulations . You did a great job for Roxie and this will result in referrals.
Marc - Roxie wasn't an actual client in this illustration per se, just an example of an actual transaction. I think we sometimes overlook what other people plan and do to put themselves in a position to fulfill their chosen dreams. Thanks amigo, talk to you soon!
Gita - Thanks. I heard it long ago and subscribe to it to this very day ... Referrals are the Lifeblood of our Business.
Timely article - self employment(stated income loans) have gotten pretty strict. Thanks for the info.
The best year I had in the music industry I made $800. Of course, I made a lot more than that, but thank you Mr. Accountant.
Most years I lived off of a $300-$2000 loss. Makes grocery shopping hard.
Great post, Jason.
Tracy - Thanks! I think it is important that folks know it is out there, for those that need it. Have a great week!!
Joey - I need to contact your accountant;-) I came into this business from the Restaurant Industry. That's a prime example of folks that just may need a product such as this. Now send me one of your Groovy CD's!
I think that it also shows the power of persistence too. I work with a lot of people that can't qualify. I tell them that I'll get them where they need to be in X amount of time. 3 of 10 people will work with you. 7 out of 10 stay discouraged and can't move forward. This post is a great remiinder to persist under all circumstances.
Larry - Ahhhh, persistence ... what a wonderful concept! You are so right here, the ones that persist ... are the ones who tend to eventually reap the rewards.
So it sounds like Roxie might be single... may have a cat or two... Why would she need all 2,200 square feet?