Low Income Home Loan

Refinance Equity Buys Second Home


An immigrant couple who both work in low-income jobs came to me for help buying a second home. Both of the borrowers work in the restaurant/food service industry, and their hours and income were somewhat variable. Only one of them had a social security number, so we could only use one of the borrower’s names on the loan application.

They owned a single family residence property in San Francisco that they purchased years ago and were occupying as their primary residence. The property had appreciated nicely over the years and I helped them take cash out to put them in position to purchase another primary residence outside of the Bay Area. This allowed them to rent out the San Francisco property and move to a more affordable part of the country. The rent on the San Francisco property was enough to create positive cash flow for them on that property and the $100K cash they took out on the equity of that property allowed them to move to Texas and buy a new home for cash.

The borrower without a social security number has since gotten his green card and has a social security number now.  I am working with them to purchase another home in Texas where they are making the same income as in San Francisco but where the cost of housing is dramatically less. They will rent out the home they purchased in Texas for cash and it will also create a nice cash flow vehicle for them. They can now qualify for a purchase of a home in Texas that is twice the cost of the one they currently own, because we can use the second borrower’s income now and they own two properties that cash flow positive.

Part of the way I am able to get the income from their jobs to work for qualifying purposes is that I have been working with their employers to get formal, written verifications of employment that explicitly state that both borrowers are full-time employees despite their slightly variable hours showing on their paystubs, and I don’t submit their paystubs to the lender.

Refinance Resolves Balloon Payment Threat


A retail store owner who is also a homeowner in Kensington, came to me looking to refinance. His home loan had a balloon payment that was coming due. The stakes were high: he needed to refinance soon or he could potentially lose his home. The current lender was poised to repossess.

His tax returns did not show the net income required to qualify for a conventional loan.

Using a CPA-certified profit-and-loss statement for the last two years, I was able to get him refinanced into a more stable loan at a lower interest rate. Thus, this business owner, and his wife and kids, were able to keep their beloved family home.

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