London Builder Purchase Closed with Rush Alternative Bridge and B-Lender Stated-Income Exit

1. Executive Summary

London clients were purchasing their primary residence from a builder. The husband was a truck driver with very low verifiable income, and the wife was not working. Before approaching us, they had spent a lot of time trying to get an A-lender approval, but they were declined because the income did not support the requested mortgage. When they came to us, only about five days were left before closing. The builder was demanding a very high penalty for extending the closing, even by a few days. We arranged a rush mortgage from an alternative lender strictly as a six-month bridge. We then arranged a mortgage from a B lender under a stated-income program supported by 12 months of bank statements.

2. Borrower Profile

The borrowers were purchasing a primary residence in London, Ontario. The husband worked as a truck driver but had very low verifiable income for conventional mortgage purposes. The wife was not working. The file had already been declined by A lenders before the clients approached us. Borrower identities, employer or business details, income figures, credit score, and lender names are not disclosed.

3. Property Profile

The subject property was a builder purchase in London, Ontario, intended as the clients’ primary residence. The clients were close to the contractual closing date when they approached us. Exact address, builder name, purchase price, mortgage amount, down payment, loan-to-value, rate, fees, and lender names are not disclosed.

4. The Challenge

The clients had very little time left before closing, and the builder was not willing to extend without a major penalty. A-lender financing was not available because the husband’s verifiable income was too low and the wife was not working. The file needed to close quickly, but it also needed a real exit strategy. A short-term bridge without a planned B-lender exit would have simply created a new maturity problem six months later.

5. Why Conventional Solutions Failed

A-lender financing failed because the clients’ verifiable income did not support the requested mortgage. The husband’s truck-driver income could not be used strongly enough under standard documentation rules, and the wife was not working. By the time the clients approached us, there was not enough time to continue pursuing ordinary A-lender options. The builder’s extension penalty created additional pressure, making a rush bridge necessary.

6. Our Analysis

Our analysis focused on two separate problems: closing the purchase immediately and creating a realistic exit after closing. The immediate problem was the builder deadline. The longer-term problem was income documentation. We arranged an alternative-lender bridge for six months so the clients could close, but we did not treat the bridge as the final solution. The exit was planned through a B-lender stated-income program supported by 12 months of bank statements, which better matched the truck-driver income profile.

7. Financing Structure

The file was first structured as a rush alternative-lender bridge mortgage for six months to close the builder purchase. The exit structure was a B-lender stated-income mortgage supported by 12 months of bank statements. Public details do not disclose the lender names, mortgage amounts, rates, fees, terms, amortizations, purchase price, down payment, bank-statement income calculation, or final loan-to-value.

8. Why the Solution Worked

The solution worked because it separated the emergency from the permanent structure. A conventional lender could not approve the file in time, and the builder penalty made delay expensive. The alternative-lender bridge solved the immediate closing problem. The B-lender stated-income mortgage then solved the more important long-term issue by using a documentation method better suited to the borrower’s income pattern. The underwriting principle is that bridge financing should buy time for the right exit, not become an expensive dead end.

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