A member came in for a cash-out refinance. She was in the process of applying for Habitat for Humanity, but because she had inherited credit card debt from her divorce, her debt-to-income ratio was too high. Habitat advised her that this needed to be resolved before she could qualify.The member shared that she had reached settlements with debt collectors and other institutions she owed in order to repair her credit file. She had a vehicle she could use as collateral and needed $3,500 to pay off the settlement. Once paid, she would be able to qualify for Habitat for Humanity.
When she received the initial loan decision, she became emotional. She was reassured that there might be other options available to help and that additional steps could be taken. The application was sent back for a second review, and the underwriter and supervisor took the time to look at the full situation. Ultimately, the loan was approved. The member was very happy with the decision. She is a mother of two young children and was living in a two-bedroom, one-bath mobile home. She is also a teacher. During this process, there was a promotion for a $250 refinance bonus, and she was overjoyed when she learned she would receive the additional $250.
