I'm the seller and the buyer's are having a hard time finding a home for their loan...we're grasping at straws here. The first lender (100%) turned the loan down because of the HOA answering something to their dislike on the HOA questionaire. They tried another avenue 80/20 and the second lender turned it down because it failed their automatic underwriting.

Condo owner occupied Purchase $235,000 in San Diego, CA
100% Stated Income
Credit score around 730
Only 2 months reserves
Instead of 12 months cancelled rent checks, landloard only accepted money orders so can provide a letter and log of paid money orders, but no cancelled checks

It's a husband/wife but the wife's credit score is sub 600 and has collections. That is why it's stated...because they are only using the income of the husband. They've been denied twice now and so we're giving them 3 more days to get approved somewhere before we cancel the contract. Any ideas how we can salvage this deal and find a home for this loan?

Have you run the loan thru DU as a full doc 100LTV using both incomes?

If the husband makes more and has a 730 you should be able to go full doc, hoping that he makes enough that the debt-to-income ratio is fine. The biggest issue here is the 100%. Can they come up with $12k, the guidlines for 95% stated are much easier to find a program for.

I believe First Franklin is still doing 100% stated with your buyers score. They even have a Rapid Purchase program with 18 mo timely rent (never 30 days late) payments and I believe your buyers docs will work. Look up some local brokers and call to ask if they do much business with First Franklin. That will be the quickest way.

You might also mention to your buyer that they may can do a Bank Statement program with good deposits to qualify for full doc rates. Good luck.

I believe the DTI ratio with just the husband's income is over 50%

The HOA issue may have been the % of renters in the complex.

I can try to work this one if the buyers would like. I have access to 200+ lenders inlcuding First Franklin (good call on that one, Rono) & we are in CA.

Looks like they actually are trying to use First Franklin...they've been conditioned on two items so hopefully they can clear those conditions to get this approved!

FF is good for these kinds of deals.

Did it close yet for you?