Unfortunately the situation that this client is in, happens a lot more than it should. He has managed his finances well, paid all of his bills on time and then get’s into a dispute with a creditor, decides to not pay his bill and the creditor files a credit warning. His FICO score falls as a result making it difficult to get a loan and if he can get a loan, it is usually more expensive.

On top of that this client is a small business owner with a single employee (himself). Although he has been in business as a successful insurance broker for many years, he is considered a high risk from this perspective as well. Far too many small businesses have declared bankruptcy in the last few years and all small business owners get lumped in with the same crowd.

Small business owners must be squeaky clean when it comes to managing their finances. This is the only way the major banks will lend money to these small business owners.

In the mean time, we believe that this client can be approved for a loan, however his interest rates may be prohibitive due to his low FICO score.  Until he resolves the issue with the store and recovers his FICO score, he may want to consider completing his upgrades to his home over several years and self funding the refinishing work. This is probably something that he does not want to hear, however right now with the economy the way it is, credit is very tight, especially for small business owners.

Another suggestion is to consider a small revolving line of credit as a means of funding some of the work on a phased basis. As he is able to repay the loan, he can then borrow money once again to finance the next phase of the work that he would like to accomplish. Since he has a stable income, this should be no problem for him as long as he spreads it over several years.

Home/Mortgage Loan Amount :: $ 200,000

Home Loan Application and Processing Speed (when do you need the funds):: Within one months time

Do you currently have a mortgage? :: yes, a small mortgage

Bank Name and Branch :: Chase Bank, Broad Street

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

Zip ::43215

What is your employment field? :: Insurance Sales and Broker

Employment Position :: Own my own insurance brokerage

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

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

How did you find us? :: searching for loans online

How are you paid? (direct deposit/paper check): Direct deposit:

Gross Amount Per Paycheck :: $ 8,333.00

Do you agree to have this information published online, without your PRIVATE information of course? :: sure as long as my company is not mentioned.

Extra information here please (some detail):: I run my own small insurance brokers company out of my home office. I have a very good set up in that most of my work is done over the phone and also online. I do have a separate office in my home and I can bring customers to my home as needed, however most of the time I meet them in their homes or at their offices during the day. Over the years I have sold a lot of insurance and now I pretty much rely on renewals and the odd additional customer for my income. Every month I pay myself a small salary and also the expenses that are part of running the business. This has worked well for us for the past ten years.

We have been in our home for over twenty years and only have a small mortgage left on the home. There is only another five years of payments left. We plan to complete some upgrades on the home, new flooring, new kitchen, new roof and windows. We also want to redo all of the landscaping as well. We plan to stay at this location for many more years and want to make it nice for us to enjoy for those years.

Note to Lender :: We have tried finding a loan from several of the major banks, however because my FICO score is below 600 and I am self employed, they  have not been forthcoming with a loan. In fact one loan manager said he would be surprised if I could get anyone to lend me money. I really do not understand why someone who has a small business with solid income cannot get a loan these days. I know my FICO score is low, but that should not matter as far as I am concerned, it should really be the ability to repay the loan that should count.

My wife and I have a low FICO score because we borrowed money for a new car, we have several credit cards, we have a mortgage and we have an issue with credit with one store that we are still fighting. We returned something we purchased at this store and they would not give us credit for the return. We decided to fight it and of course not pay the bill while we were fighting this charge. They retaliated by filing a credit warning and this resulted in lowering our FICO score. We are really upset about this but there does not seem to be anything we can do at this stage. If you have any suggestions, please let us know. We are really frustrated at this point, but we also want to get on with updating our home.

 

Category: Home Mortgage Loan	APR 3.832%	APR 3.107%	APR 3.5%
Loan Principal	$200,000	$200,000	$200,000
Payment Schedule	Monthly	Monthly	Monthly
Length of Term	30	15	25
Amount to be paid	$315,274.76	$246,860.72	$287,787.80
Total interest paid	$115,274.96	$46,860.72	$87787.80
Paid per installment	$863.77	$1352.66	$946.15

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