5% downpayment still possible?

[boyd888]

Originally Posted by pmbva

I am buying a new home in Alex and it will not be complete until end of Oct. This is a Jumbo Loan 725,000 so if I want the house I now need to come up with 90,000+ big difference from 35,000!! Any suggestions??

The problem here is that you are upside down on your current home and now you're trying to FHA a $700K loan? If you don't have the cash, you have to no options to have both homes. This isn't 2006 anymore.

You may find a lender willing to do 5% down, but that will be tough given your low cash reserves and being upside down on the other home. Options that would work include buying a different home that is already done and can be closed on before Sept (probably the best option if you want to move), staying in your current home, having a cheaper home built, etc.

[Margery]

Have you asked the builder if they would be willing to take a second mortgage for the difference? I don't know if FHA will allow that, you'd have to ask your loan officer.

Why are you moving? If for no other reason than to get a more expensive home I would stay where you are. You are taking on a massive debt in addtion to the mortgage you already have, which is more than your home is worth. To take on additional debt in today's economy is scary.

[CAVA1990]

Originally Posted by pmbva

We can't sell, we can't count rental income because we do not have 30% equity and now the government is decreasing the max loan limit on FHA. So only option seems to be 10% down conventional which I qualify for but which I do not have the cash for!!

Multiply this by thousands of other potential homebuyers. Basically the government is screwing over the economy via the real estate market. They either want a double dip recession or they're bound and determined to transform us into a nation of renters.

[mshan242709]

I would say it is actually the big banks that caused the whole mess.

They have lots of properties marked at much higher prices than they are worth, so they hord cash instead of lend because they know they might be insolvent otherwise (e. g. hypotetically saying mortgage they own is still worth 0.70 cents on dollar when real buyers of those mortgages only pay 0.20 on the dollar).

Plus bank lobbyists were probably the same ones who kept watering down mortgage modification programs to point they never had a chance to succeed.

[DMB22]

Originally Posted by HokieFan

At this point, you have a total of four posts. All four posts are in regards to real estate questions and each post says to contact you via DM if someone wants more information or assistance...

Methinks you are using C-D to get leads.

I was first introduced to CD forums when I was relocating a few years ago. I started posting on here because I saw people asking for mortgage advice and getting really innaccurate advice from people clearly not in the industry that had almost no idea what they were talking about!

I try to just answer questions on the boards and not be "salesy". That is why I offer people to DM me if they want more information. My hope is to get good information to people asking questions but I also enjoy earning money for myself and my family! So if I gain a client by offering free advice(and to be honest I have, more than one), that wouldn't be the worst thing!

I hope I'm not abusing any privileges here. I'm certainly not trying to be sneaky about the point of my posts. Like any good service professional, I enjoy sharing my knowledge and expertise and am always seeking to increase my client base.

[DMB22]

Originally Posted by pmbva

I am buying a new home in Alex and it will not be complete until end of Oct. Qualifying is not an issue but up front cash is. I was going to use FHA 3.5% while I rent out my present home since it is upside down . The FHA loan needs to close by end of Sept or the max loan rate drops so I am screwed! This is a Jumbo Loan 725,000 so if I want the house I now need to come up with 90,000+ big difference from 35,000!! Any suggestions??

We can't sell, we can't count rental income because we do not have 30% equity and now the government is decreasing the max loan limit on FHA. So only option seems to be 10% down conventional which I qualify for but which I do not have the cash for!!

Any options other than cancel my new home and run out and but a resale before max loan limit drops and makes single family homes in many Virginia areas out of reach.

I haven't seen the HUD press release on this yet but most changes to FHA loans affect the FHA case number date, not the closing date. So as long as your application date is prior to the change, you should be ok. So you need to make sure your lender orders an FHA case # prior to the loan limit reduction if that is how HUD handles this change (which is likely).

As always, DM me if you need any further info!

[saganista]

Originally Posted by DMB22

I was first introduced to CD forums when I was relocating a few years ago. I started posting on here because I saw people asking for mortgage advice and getting really innaccurate advice from people clearly not in the industry that had almost no idea what they were talking about!

Wow! THAT actually happens around here??? For my money, sound advice is sound advice, the more of it there is the better, and it doesn't really matter where it comes from. If it's sound and actionable, we all win.

[VTHokieFan]

If you can't afford it, why don't you rent?

[DMB22]

I think in the OP it is mentioned that they CAN afford the payments easily, they just don't have access to their capital, which is tied up in a house they can't sell. What is the difference between making a mortgage payment and rent payment and two mortgage payments? As long as you can afford both payments doesn't it make sense to build equity someplace?

[DMB22]

Originally Posted by saganista

Wow! THAT actually happens around here??? For my money, sound advice is sound advice, the more of it there is the better, and it doesn't really matter where it comes from. If it's sound and actionable, we all win.

Well said!