[aardogfsu]

First time home buyer. Got offer accepted at $258,000...and was preapproved for a loan. "Claimed" $80,000 in income last year. "Claimed" $15,000 the year before. Currently own $22k car paid in cash and own 3 condos paid off that are all rented out. Currently show over $200,000 in cash. My credit score is above 700. Was trying to put as little down so I could continue to invest in other interests that pay me above what the cost of my interest on the house would be.
Here's where the nonsense starts:
After getting approved for the loan and letting him know that I intend to pay the mortgage off early, within 2 years and having credit above 700, loan officer says even with putting $200,000 equity into a $258,000 he can't approve me for the other $58,000 because owning the 3 condos has my HOA per month at $490, even though these condos are cash flowing at $2000/month. He said I'll need to file my taxes for 2012 early and show around $90,000 for this year. After rushing to do that, I'm told things have changed again and I'll need to be put into a loan that carries MORTGAGE INSURANCE at $250 a month...when my mortgage is only $1100 a month. The mortgage insurance doesn't pay the principal down one cent and essentially makes this loan nearly 25% on the months that I'll be carrying a mortgage when you include the interest rate. I've told him I'll put whatever I need down to steer clear of this nonsense mortgage insurance and he continues to balk. Upon looking on the internet regarding mortgage insurance it's not needed if you put 20% into the house but still he says it won't work without a clear reason.
When showing income the last 3 years that equals over $60,000/year...
When being single and having no dependents...
When owning 3 condos paid in full...
When showing over $200,000 cash assets and willing to put 75% into the property with the ability to pay off the remaining $50,000 this very same year...
What is this nonsense with things constantly changing with him running numbers and insisting he puts me into a loan that has a mortgage insurance that is essentially tossing money out the window?

Anyone been through this nonsense? What are your thoughts on what is going on? Once I was approved for the loan and approved on the offer, all this BS with the loan started happening.

[bledsoe3]

Originally Posted by aardogfsu

First time home buyer. Got offer accepted at $258,000...and was preapproved for a loan. "Claimed" $80,000 in income last year. "Claimed" $15,000 the year before. Currently own $22k car paid in cash and own 3 condos paid off that are all rented out. Currently show over $200,000 in cash. My credit score is above 700. Was trying to put as little down so I could continue to invest in other interests that pay me above what the cost of my interest on the house would be.
Here's where the nonsense starts:
After getting approved for the loan and letting him know that I intend to pay the mortgage off early, within 2 years and having credit above 700, loan officer says even with putting $200,000 equity into a $258,000 he can't approve me for the other $58,000 because owning the 3 condos has my HOA per month at $490, even though these condos are cash flowing at $2000/month. He said I'll need to file my taxes for 2012 early and show around $90,000 for this year. After rushing to do that, I'm told things have changed again and I'll need to be put into a loan that carries MORTGAGE INSURANCE at $250 a month...when my mortgage is only $1100 a month. The mortgage insurance doesn't pay the principal down one cent and essentially makes this loan nearly 25% on the months that I'll be carrying a mortgage when you include the interest rate. I've told him I'll put whatever I need down to steer clear of this nonsense mortgage insurance and he continues to balk. Upon looking on the internet regarding mortgage insurance it's not needed if you put 20% into the house but still he says it won't work without a clear reason.
When showing income the last 3 years that equals over $60,000/year...
When being single and having no dependents...
When owning 3 condos paid in full...
When showing over $200,000 cash assets and willing to put 75% into the property with the ability to pay off the remaining $50,000 this very same year...
What is this nonsense with things constantly changing with him running numbers and insisting he puts me into a loan that has a mortgage insurance that is essentially tossing money out the window?

Anyone been through this nonsense? What are your thoughts on what is going on? Once I was approved for the loan and approved on the offer, all this BS with the loan started happening.

I would find somebody else to get a loan from.

[forestgump99]

I was in a similar situation a couple of years ago. I applied for a loan at 2 different places. Just wanted a loan to buy a house for $150 OR EVEN $100K. I said I would put 25% down (to avoid PMI) and I told them it was investment property.

NO, not approved. They said because I already owned, they didn't want to give me a loan. My credit was excellent and no debt. Couldn't believe it.

[WestieJeff]

It gets complex when you've got all these investment properties.

Generally when you have several rental properties, they determine rental cash flow off your tax returns. If you're not reporting income or have high expenses (which ultimately lowers your taxes), you don't get credit for it when it comes mortgage time and it can count against you as a debt.

Likely your condos are showing up as a debt rather than income.

Normally that doesn't affect mortgage insurance requirements, but every lender is different and can have more restrictive requirement overlays (most do, to some degree).

Owning properties outright, cars outright, and having a lot of cash in the bank means pretty much nothing to the lender, since the lender has no claim to those items. Once you meet reserve requirements, you've checked that box, if you have $1 more than reserve requirements or $1 million more than reserve requirements, they don't care.

You can go to a hard money lender and get approved for sure, but you'll pay 5 points upfront and 12% APR.

If you've been "adjusting your income" on your tax returns, this is ultimately what can happen. You usually need two years of solid tax returns to get a mortgage.

[aardogfsu]

I've got 3 other short sale condos in the $50k range closing in the next 3-6 months so I was hoping to put down around 30%-40% on the house (about $100k) to give me some breathing room (without having to borrow from family)...but the fact that I'm willing to put down $200k and borrow $50k from the lender and that's not good enough raises my eyebrow...tons of stuff on the internet regarding borrowers being pushed into mortgage insurance...just wondering if something is sketchy...how can I offer to put down 80% on a house with good credit and not be approved?

[MSchu]

Originally Posted by bledsoe3

I would find somebody else to get a loan from.

^This... it's as simple as that

Originally Posted by aardogfsu

.how can I offer to put down 80% on a house with good credit and not be approved?

If you don't show the ability to pay... you won't get a loan for $1,000 let alone $50,000... AND, the things you declare have to be seasoned.

This is not the early 2000's any longer.

[WestieJeff]

Because you have to meet all the requirements, not just some of the requirements.

Over-meeting one requirement (down payment) doesn't change other requirements (income ratios).

Originally Posted by aardogfsu

how can I offer to put down 80% on a house with good credit and not be approved?

[aardogfsu]

an hour ago I just secured a loan from family at 5% to make the whole deal go cash, called up loan officer to cancel the loan outright and suddenly the computer's "sensitivity" allowed me to secure a conventional loan with 20% down and NO mortgage insurance. Are these officers getting kickbacks on the mortgage insurance side of things? Nothing changed except me telling him I want out of the deal. Crazy.

[laspider]

I would not trust them not to play games again at the last minute when you are coming up against a deadline. If you can borrow money at 5% from family I would say good bye to these sleezebags.

[von949]

Originally Posted by WestieJeff

Because you have to meet all the requirements, not just some of the requirements.

Over-meeting one requirement (down payment) doesn't change other requirements (income ratios).

Makes the most sense. Not approved!






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