Purchase price: $290,500.00
Loan Amount: $284,747.00
Credit Score: 677 middle
Interest Rate: 4.125%
CCAP: $6,816.97 lender credit to buyer
Total cash used to close: $10,167.50
Total monthly payment: $2,081.76
Buyer first contacted us February 11th 2016 in reference to our CCAP program – they
only had $10,000.00 to buy a house. They wanted to buy up to $250,000.00 and find a
3/2 2 car garage in a nice neighborhood. They did not like what they have seen and
decided to wait until the right property came along. They checked online and called us
with properties most of which were short sales, foreclosures, sold or under contract.
On April 14th, 2016 we showed them 20 + properties but this time using our proprietary
software (Turboagent) and we located properties based on a monthly payment not
exceeding $2,100.00. Now they found three houses they liked, and one they absolutely
loved, but it had five other offers. We positioned our offer to be the highest and best,
and we offered $290,500.00 on a $285,000.00 asking. We got the property!
We then did the inspection, and some minor issues came along. I was able to negotiate
$5,000.00 to go to the buyer. Second victory!
Upon verifying the income documents, we discovered a huge challenge. The borrower
told us he was making $65,000.00 / year however, his documents showed $55,000.00
instead and he would not be able to qualify for this particular house. He then tells us that
he got a promotion which was a $10,000.00 raise, and that his first pay stub proving that
was coming this next Thursday.
Friday came with no pay increase, and waiting for this pay stub went on for a month. To
make things even worse, he would take two to three days to sign documents, and
several days to provide any missing documents. We missed the closing date by a
landslide, and the seller was not happy.
We had beaten five other offers, they selected our offer because they deemed it to be
not only the highest, but also the strongest. Now they felt cheated on, and demanded all
kinds of money from the buyer to grant an extension. I was able to negotiate to pay the
seller’s mortgage as shown in the mortgage statement for every day that passed from
the original closing date (instead of giving up the deposit as seller requested) We were
able to close 20 days after the original agreed closing date.
At the end, borrower had a 677 middle score. He received a 4.125% interest rate.
Bluecastle Lending payed $6,816.97 of the buyer’s closing costs through the CCAP
program, the seller payed a net $3,538.35 of the buyer’s closing costs ($1,461.65 was
lost paying the seller’s mortgage) and the total cash the buyer used was $10,167.50 to
purchase a $290,500.00 home. His monthly payment with everything included was
It goes without saying that our client was very happy – he bought a $300,000.00 house
that he loved with just $10,000.00 and a payment he could afford. See relevant parts of
the Closing Disclosure