Julia Knurova, a Mortgage Loan Originator at MortgageDepot’s Hollywood, FL office recently helped a self-employed investor navigate a challenging loan scenario. The borrower was seeking a cash-out refinance on a single-family home in Lakeland, FL, which she had acquired less than six months ago. This case presented several unique challenges.
First, the borrower did not have a primary residence and lived rent-free, raising concerns about her financial stability. Additionally, although she initially claimed to have bought the property with cash, it was later revealed that she used a hard money loan, which was not disclosed upfront. Further complicating the situation, the borrower had a bankruptcy within the last seven years, and the property was acquired through an arm’s length transaction.
To overcome these obstacles, Julia structured a non-QM DSCR loan, which is designed for situations that do not meet conventional loan requirements. She secured an exception for the borrower not owning a primary residence, acknowledging her status as an investor. To address the recent property acquisition, Julia arranged for two appraisals to demonstrate significant improvements made to the property, allowing for a cash-out refinance despite the limited title seasoning. The DSCR loan also permitted borrowers with a recent bankruptcy, and Julia provided documentation to prove the borrower had no prior association with the property’s previous owner.
Through careful planning and a tailored approach, Julia was able to secure the loan, enabling the borrower to access the funds she needed. This case is a great example of how creative solutions and expertise can help borrowers overcome complex financing challenges.