This client has a poor credit rating and he is applying for a a jumbo home loan mortgage of $600,000 to finance
the purchase a home he and his wife would like to buy in Modesto , California.  This is a rather large loan and most clients must have excellent credit ratings in order to qualify for such large mortgages. This client admits that they have a poor credit rating. The monthly payments on a 30 year mortgage term at the available interest rates are almost $3000 a month which is much more than what banks will loan to a client with the income  they are currently making.  On this basis the loan would not be considered and would be turned down!

The client has indicated that he has an additional $200k in a GIC which will mature in six months time and which he is prepared to place against the mortgage, reducing the overall loan down to $400,000.  If this GIC were available today, it would have a dramatic impact on the monthly payments. First the home loan mortgage would not fall into the jumbo loan category and would qualify for a lower interest rate. Secondly the payments would now be based on a much lower amount and would come to less than $2000 per month. At this level, these clients would qualify for a home loan mortgage , subject to the issue of having a poor credit rating.

Further discussion with this client and the bank will be required to work out a solution that would be amenable to the bank, while meeting the needs of the client. He is asking for a very large home loan mortgage while having a poor credit rating and unless some creative financing can be worked out involving his GIC. This client is unlikely to be approved for the loan they want and the home they have placed an offer on may be purchased by someone else.

If the client were to consult with his bank were the GIC was purchased, they may be willing to work something out that would allow him to proceed with the purchase. Most other banks would be unwilling to proceed with this type of jumbo home loan mortgage.

Home/Mortgage Loan Amount :: $600,000

Home Loan Application and Processing Speed (when do you need the funds):: We have found a really great home that is exactly what we need and would like to place a firm offer on it as soon as possible.

Do you currently have a mortgage? :: No, just sold our current home, existing mortgage to be discharged

Bank Name and Branch :: Farmers and Merchants Bank of Central California, Modesto Main

What City/Town, State and County do you live in? :: Modesto, California

Zip :: 95355

What is your employment field? :: Farm Equipment Sales & Repair

Employment Position :: Sales Manager

When are you paid? (monthly/weekly/biweekly):: Biweekly

Your credit rating to be – excellent, fair, or bad? :: Poor Credit rating

How did you find us? :: surfing on the web

How are you paid? (direct deposit/paper check):: direct deposit to my checking account

Gross Amount Per Paycheck :: $3650.00

Do you agree to have this information published online, without your PRIVATE information of course? :: sure

Extra information here please (some detail):: We have just sold our home and have made an offer on another home in an area that we consider better suited for our family. We have $300,000 to put down on this property and I need another $600,000 for the mortgage.  This is a large amount and we will only need it for approximately 6 months, at which time we will have cashed in some savings which will mature at that time. We expect to be able to repay approximately $200,000 at that time. As a result we would like the provision in the mortgage approval that allows for us to make this kind of payment on a one time basis.  We tried to find better timing, however someone made an offer we could not refuse on our current home and now we need to move to another place prior to the GIC maturing. We realize that this is a jumbo home mortgage loan, however we do have the cash to make this a reasonable transaction for both the bank and ourselves. We are also prepared to show you the GIC that we hold to prove that we have these funds available.

Note to Lender :: I work in the agricultural equipment business selling large and small farm equipment to local farmers in the region. Our business took a downturn like everyone else’s in the past 2 years and now seems to be on the rebound. During this time we had difficulty paying our car loans, and ended up with a poor credit rating. Our mortgage which we will be discharging was never in arrears.  We have since repaid the car loans and own both of our cars out right and we also have a zero credit card balance as well. I make $95,000 a year, which is a combination of base salary and commissions. My wife also works as a legal secretary for a local law firm and makes $40,000 a year. We know that we are asking a lot with this mortgage loan, and we need someone who is aggressive from a lending perspective who will help us re-establish our credit with what we consider to be a really a low risk scenario.