During our 35 years in business, we’ve learned that it’s impossible for every potential borrower to have a near-perfect credit score, steady W2 income, and zero past events (like a bankruptcy or foreclosure). As a real estate agent, you’ve undoubtedly learned the same — but that certainly doesn’t make your job any easier sometimes. Especially when you have a motivated home buyer who is struggling to get approved for a mortgage.
At Embrace Home Loans, we believe that unconventional shouldn’t mean unqualified. That’s what drove us to create a new product, Beyond by Embrace. Beyond offers financing solutions for your home buyers who are self-employed, report low adjusted gross income on tax returns, have FICO scores as low as 580, or have a prior bankruptcy, foreclosure, modification, short sale, or deed in lieu.
Beyond was released in late spring of this year, and our success stories are already piling up. It’s been so rewarding to help these unconventional borrowers, and to give our agent partners a solid mortgage product that can help not just close deals, but completely save them in some instances.
A New Home One Year After Bankruptcy
The borrower fell on tough times a few years ago and had to file Chapter 7 bankruptcy. That bankruptcy was discharged in the summer of 2017. Then, the borrower’s father passed away in the summer of 2018 and he planned to move from Maryland back to his hometown in Pennsylvania to care for his elderly, widowed mother.
He wanted to buy a home, but since his bankruptcy was only a year old, he just planned on renting and waiting the normal FHA waiting period before buying.
How Beyond helped
When he contacted his local real estate agent for a rental agent referral, she remembered hearing about beyond by Embrace, which allows for borrowers to be just one year out of bankruptcy.
Because of this, the borrower was able to qualify for a mortgage and buy a one-level ranch.
- 657 credit score
- 15% down payment, no MI
- $194,000 sale price/$164,900 loan amount
- Recent late payments on student loans
- Chapter 7 bankruptcy, discharged one year prior
- 48.60% DTI
- 5/1 ARM
We’ll be sharing more of these Beyond success stories, so be sure to check back regularly. Have a client now you think could benefit from Beyond? Contact your local Embrace loan officer now.
Embrace Home Loans, Inc. NMLS #2184 is licensed in 46 states, plus DC. (www.nmlsconsumeraccess.org). This is not a commitment to lend. Other conditions and fees will apply.