Any ideas who would write this? TN Property.
Looking for 1st. Low LTV with recent Medical Chapter 7
$610 K purchase price. $200k cash down. $410k 1st mortgage. No other debt. 66% Plus LTV
Borrower has 650 mid score after Chapter 7 discharge July 2020 due to medical event. No trade lines except Student Loans and token Auto loan.
New construction - Owner Occupied - single family home close to Nashville Tennessee
Borrower open to Interest only.
Borrower Background
Married but purchasing as separate property due to husband’s credit score.
Married/together since 2004
Relocated to Nashville Tennessee post California home sale of $670,000. Wells Fargo/USDA loan paid in full and on time. Note that the Wells Fargo Home mortgage, GM Financial and Student Loans were both subject to Covid19 deferrals.
More on the medical Chapter 7. New Year’s day 2021 was great. High credit scores and everything paid timely, especially in light of the covid shutdowns in California. Then came January 9 and everything changed. Husband suffered a brain hemorrhage, was hospitalized for 4 plus months. Brain surgery and his recovery/rehab with total costs at a little over $8.5 million and even with health insurance. It was devastating. Husband still recovering, is walking now but eyesight was damaged and no one knows if his vision will recover 100%.
Between husband and wife, they share 5 kids all now in college and the children grew up in that California home. Borrower and husband now solo in Tennessee.
Borrower knows it’s hard to overcome the bankruptcy but has a little more than $270,000.00 in the bank from the California home sale to put towards new home and reserves. Additionally, wife receives over $2,187. monthly from the state of California and husband receives a monthly payment of $574. from Social Security for his new disability totaling $2,761.00 monthly.
Realize in the world of credit scores, none of these above reasons make much difference. Wife’s FICO’s mid score is 650 although higher numbers depending on the source.
Wife is a trained pastry chef and spouse was most recently a consultant for enterprise resource planning (ERP) software, focused within the oil and gas industries.
$50,000 plus in cash reserves after approx closing costs for proposed home purchase/acquisition.
PROS:
-
66% plus LTV
-
650 Credit mid-score even with Chapter 7 (701 mid score via Identity IQ)
-
$200,000 Cash down
-
$270,000 Cash in bank (California Home Sale Proceeds)
-
$50,000 plus in cash reserves post acquisition costs.
-
No other debt on home transaction or any revolving debt sans a few Student Loans and token auto loan.
-
$2,187. Monthly Retirement income from State of California
-
$574. Monthly Disability from Federal Social Security
-
Great credit and multiple trade lines before medical crisis and Chapter 7
CHALLENGES:
-
No real trade lines currently
-
Chapter 7 Bankruptcy due to Medical Crisis, discharged July 2021