Jumbo loan approved for borrower with Chapter 11 bankruptcy

Mortgage adviser: Michael DiVita, DiVita Home Finance. Property type:

Condo in Santa Monica. Purchase price:

$5.25 million.

Loan amount:

$3.937 million.

Loan terms:

5year adjustablerate mortgage, interest only Loan rate: 6.5% Backstory: I was referred a client from a large retail bank that could not get traditional financing for a condo that was in contract.

The borrower had a Chapter 11 Bankruptcy that was discharged in 2016. Most lenders require at least four years since the discharge date, and many as much as seven years. The borrower also wanted to conserve his cash position and get the highest loan amount possible.

Adding to those issues, the property was a condo, which lenders see as more risky than a singlefamily residence.

With these many layers of risk, not one of the more than 60 lenders I am approved with were able to do this loan.

I began making calls and found a lender in San Diego that was willing to do the loan. I packaged it up and had a clean approval in three days. We closed the deal in 23 days, which could have been 17 days if not for waiting on funds from the sale of the borrower’s previous property.

Credit worthy borrowers such as this gentleman can fall through the cracks of traditional lending programs. There are programs out there that can help, if you are willing to look for them.