Have afriend who denied a mortgage today at trutsco bank. We need to find somewhere, anywhere to loan her the money. Please give your suggestions as to what bank or company or lender would do this. Info below.

1. She has 10% to put down on a $115k loan for this house.

2. Makes $70k annually.

3. Owns another house which she rents out, this covers the mortgage and taxes.

4. Has a 642 Credit Score

5. owes $18k in back taxes and is making payments since May. Gov has  a tax lien on he other house for this.

Who can make this loan happen? What lender do you suggest?

sounds like she is trying to buy another rental to me?, why the tax lien, and why only started paying in May?

No. She is trying to buy a home to live in. Its a great deal and it costs less than her current rent. The tax lein is from - She was in the mortgage business  and young -22 yrs old and didnt pay taxes one year. this is 3 years later and now she's making payments.

what is the value of the rental she does have, and what is the distance (miles) from where she currently lives or works?

Value is abou $170k and she owes $140k. Lives abou 10 miles from it.

sorry, still sounds like wanting to buy a rental...along with the other issues

Wow .......... It doesnt matter how it sounds to you im not here to spue lies im mearly asking for some help! She has absolutely, positively, 100% guarnteed no interest in a rental....period. Now do you have something usefull to offer?

Without even addressing the occupancy issue, the tax lien is a probem. Tax Liens always take first priority, and the only time I have seen the IRS subordinate a tax lien was when the buyer had been in a satisfactory work out agreement and had been making payments under that workout for several years. However, I recently had a buyer that had been in a workout agreement for 6 years, with every payment made successfully, the IRS said sorry, it must be paid.  I think the chances are slim, and I don't know any companies that will lend to a borrower that has an outstanding tax lien. 

You might check with the IRS and make sure what years the liens are for and maybe it would be a small smount to pay it off.

I think Louis was just being Frank with the answers he provided.

Sounds like she doesn't need to be buying another home....yet.

Ed, this is not a loan that will get done.  Period.  Tell her to sell the other house, payoff as much of the lien as possible - then, maybe, she can qualify to buy this house.  Sounds like she is out of the biz today - 3 yrs ago this was a slam dunk, but then again, every deal was a slam dunk.....

Wow Ed...I have the same exact scenario...Maybe JB knows both of us...Small workd isnt it?