A NEW Problem With My Buyer--Now The Mortgage
We solved one problem with my buyer. To update those who don't know the story, my buyer's buyer was refusing to go forward on their deal because he found out my buyer's house was in a flood zone and required flood insurance. His lawyer advised him to ask for twenty grand off the price to "remedy the situation." I offered my buyer some money to help him lower his price and both real estate agents kicked in some money and he was able to salvage the deal.
Now it turns out there might be trouble getting the mortgage. When I lost my first buyer because of an out-of-state bank who didn't understand our agricultural zoning, I found a local guy who was familiar with horse farms and making loans for them. I asked him what the requirements would be for a buyer from out of state who was self-employed and would have to restart his business. He told me they would need 20% down, plus one year of mortgage payments put in escrow and if their credit and loan to debt ratio is good, no problem. I was clear about my buyers not having "real jobs." And that's what he told me.
So I've been giving this guy's brochures out to all my lookers (who are mostly from out of state because I'm in a touristy/retirement low-cost-of-living area everyone is relocating to) including the buyer I am now in contract with. Now that it looks like we have the flood insurance thing solved, my buyer says the bank wants him to put 40% down, not 20%. He can put 35% down, but not 40 since he had to lower his price for his buyer. Are banks not giving out loans to self-employed people who relocate unless they have 40% to put down and a year's worth of mortgage payments? Am I going to lose him because of this?