I have a business question for you: how can my sister get a loan?
Here is the scenario.
The title to her home is solely in her name and the home is appraised at $1.1 million — yes I know that in this market the figure could be lower — and she is separated from her husband. The house is in Northern California.
She only owes $160K on a first mortgage and wants to refi and take out as much as $100k to consolidate bills fix up the place etc. Her credit score is 610 and she pays her bills by working ($2k per month) renting the guest house ($600 per month) and by receiving $3,200 per month from her husband who is now overseas, and doesn’t want to be involved in any kind of refinance.
So, will a “stated income” loan work for her? As you can see she has weak credit, a hard to document income and tons of equity.
