A retired woman who owned/lived in a primary residence in Glendale and owned a rental home in Temecula, had significant credit card debt that she wanted to consolidate as well as reduce the interest rate on both of her homes.
No one would approve her as her existing monthly debt payments were too high in relation to her monthly income. She had also been to several different lenders who refused to help her.
Her credit score was great!
I collected all of her information and analyzed the data.
She had significant assets in a retirement account that were available to be tapped.
I proposed that she take a loan from her retirement accounts to pay off some of her credit card debt and bring her debt to income ratio to within acceptable guidelines. I want to stress that I encouraged her to run this by her financial advisor first to ensure she stayed within the rules.
Then we refinanced both homes – took cash out of the primary residence equity (kept her payment lower and reduced her interest rate as well) and returned the funds to her retirement account.
This was a success because I was able to look outside the typical set of qualifying guidelines to propose an alternate solution, and welcomed the opportunity to receive input from her financial planning representative.