- Joined
- Nov 3, 2014
- Messages
- 47
Hello All,
I recently had a client contact me to help him purchase a property. He is a self-employed carpenter and cannot be approved for a mortgage currently as his books have show that he makes less than he actually makes so it will take him a couple years to improve his verifiable income. He estimates his income to be $90,000 - $110,000 a year. He also mentions that he has $75,000 available to put down for a property. He wants an acreage for around $300,000 so his down payment should more than cover the 10% option deposit that we would want for security on such a property.
However, and here's the dilemma, he doesn't want to do an RTO. He was apparently burned by an RTO vendor in the past and doesn't want to go through that again. He suggested doing a VTB mortgage on the property but I'm not too familiar with VTB's so I'm not sure something like that would work for a situation like this. His main concern is that he wants some form of security to denote his interest in the property, namely in the form of his name on the title.
I've been racking my brain but I'm afraid I might not know enough to realize all my options in this situation. Any help would be greatly appreciated!
Thanks!
Phil
I recently had a client contact me to help him purchase a property. He is a self-employed carpenter and cannot be approved for a mortgage currently as his books have show that he makes less than he actually makes so it will take him a couple years to improve his verifiable income. He estimates his income to be $90,000 - $110,000 a year. He also mentions that he has $75,000 available to put down for a property. He wants an acreage for around $300,000 so his down payment should more than cover the 10% option deposit that we would want for security on such a property.
However, and here's the dilemma, he doesn't want to do an RTO. He was apparently burned by an RTO vendor in the past and doesn't want to go through that again. He suggested doing a VTB mortgage on the property but I'm not too familiar with VTB's so I'm not sure something like that would work for a situation like this. His main concern is that he wants some form of security to denote his interest in the property, namely in the form of his name on the title.
I've been racking my brain but I'm afraid I might not know enough to realize all my options in this situation. Any help would be greatly appreciated!
Thanks!
Phil