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Deal Of The Month

Review a real-life deal so you can learn and apply new techniques to your business.

 

The goal of the deal of the month is to provide other agents with info on how to solve a tough scenario. It’s also a great way to showcase a lender option that others might not know exists.

Calling all brokers to submit your juicy deals! Please send your deal scenarios to Shannon at shannon@gopineapple.com

Case Study

Here’s an example:

Purpose: The client wanted to refinance to pay off debts and take out equity to fuel retirement savings. Was on a Scotia Step, maxed out on the HELOC portion, and also had 2 other credit cards that were maxed out plus leftover student debt. Total non-mortgage debt is approximately $135,000.

Challenges: Self-employed making around $50,000 annually but NOA Line 150 was at $17,000 so needed an alt-program as Scotia refused to refinance her and asked her to take out a second mortgage. The client needed redacted bank statements because of confidentiality purposes. Did not have a business license but a professional license.

Possible solutions: Needed alternative lender offering 6-month bank statement program. A very limited pool that would accept redacted bank statements.

Solution and why: XMC agreed to redact the names on bank statements and invoices as long as we kept the first initial of the first name and last name visible. They also allowed a 35-year amortization with 50/50 ratios and the professional license in lieu of a business one. This meant we could pay off her current mortgage and debts and still have room to take out equity. XMC was okay with an equity allowance even with all her debt load from before.

Lender: XMC

Rate: 3.04% 1-year fixed

LTV: 35%

Credit Score: 720

GDS: 49.6

TDS: 49.6

Amortization: 35-year

Outcome: New mortgage amount with monthly payments less than what she was paying to service her debt before – now one easy mortgage payment. Also was able to take out $85,000 in cash to help her start her retirement savings.