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Wow. $6,129 deposit on a $720,000 house? I bought a pre-constrction house and the builder required 30% of the purchase price as a non-refundable down payment.
So, you won't be losing much if you can't close on this purchase.
Read your purchase contract carefully. Normally on pre-construction purchase, you won't be able to assign the contract to another buyer. If you can't pay, then the builder keeps your down payment and you don't get the house.
You may be right... Still looking for more responses here (with any good news).
Every builder is anxious to cancel my mortgage application, and resell the property as a quick move-in for $250,000 to $300,000 profit higher from old (no longer available) $609,990 base price. This is a HUGE chunk of money, not few dollars. If the equity was only $50,000 gain, like most parts in America, I would allow the builder to cancel my mortgage application. But, not this unusual situation that I'm facing.
What does the builder have to do with your mortgage application?
If you don't qualify with one mortgage company, apply to another.
Well it is hard to know what you are talking about.
So the general process is
Get a loan preapproval letter and submit that with a binding offer. Once the builder signs you are under contract at that price, unless there is a clause in there that says they can raise the price on you if costs go up.
So are you saying that your parents were going to gift you the money for your loan which your lender took into account when issuing the letter, but now are wanting to back out of that gift? So if they back out of that gift, you can no longer afford the home yourself?
Once the builder signs you are under contract at that price, unless there is a clause in there that says they can raise the price on you if costs go up.
So are you saying that your parents were going to gift you the money for your loan which your lender took into account when issuing the letter, but now are wanting to back out of that gift? So if they back out of that gift, you can no longer afford the home yourself?
Yes, the (low) price is already LOCKED, and it won't be changed to end of closing, according to contract. I remember "no contingency" typed onto mortgage application by the builder. Is this better or worse for my current situation?
My parents agreed with a 50% down payment. Without the 50%, I won't qualify at all, regardless of my $90,000+ yearly income, plus a car loan too, due to the DTI exceeding 50%.
If there's any way that DTI can be increased to 65% on a rare case-by-case basis, which I can qualify for 30% down payment from different source, let me know if it's possible.
It's not your equity because you don't own the house.
Trying to figure out what you are talking about, I am guessing that you signed a contract for a pre-construction house that will be finished this summer and you are going to have to come up with the agreed upon purchase money when the house is finished.
If you can't pay, then you won't own the house. It's as simple as that. If you want that house, you had best figure out where the money is coming from.
This.
I’m not a lawyer or RE professional, but I doubt the contract can be transferred. If you definitely won’t have the money OP, the only thing I can think of is to make some sort of deal with a sleazy loanshark (or your parents?) to give you the money to close (potentially all cash as you’d probably still have to document any “gift” with the lender) but then require you to turn around and sell and take a % of the profit.
I hope this works out for you. I’d never commit to helping my kid and back out unless we had a major family discord or my own situation changed dramatically and I absolutely needed the money. Perhaps your parents would be on board with co-owning the house with you and/or getting a share of the equity when you sold it? Go ahead and close the deal and then don’t move in and re-sell it if, in fact, you can’t transfer the sale privately and the price increase would bring you a tidy profit? Just a thought.
Just an observation here. Is it any wonder why people get themselves into such predicaments? They put up a deposit to purchase a house that's yet to be built. They know that they don't qualify (by themselves) for a loan that would be sufficient to purchase the house. They know they don't have the necessary down payment to purchase the house. They get a "sort of" or "maybe" response from their parents when they ask if the parents will assist them financially. They start counting "THEIR" equity in the house even before it's built and before they even own it. Now, after almost a year and a half, they're wondering how they're going to swing the deal or get their deposit back if their parents decide not to bail them out.
If it were my kid, I'd tell them "Don't make financial commitments that you can't deliver on. And if you're counting on ME for support, you'd better make sure I give a 100% 'YES' answer to your question and not just a 'maybe' before committing any of your money."
The home builder, of course... We live in a corrupted society today that America hasn't been truly great since the 1980s, when things used to be much more fairer with affordable home prices. I would much rather go back to that time any day of the week than today.
Every builder is anxious to cancel my mortgage application, and resell the property as a quick move-in for $250,000 to $300,000 profit higher from old (no longer available) $609,990 base price. This is a HUGE chunk of money, not few dollars. If the equity was only $50,000 gain, like most parts in America, I would allow the builder to cancel my mortgage application. But, not this unusual situation that I'm facing.
So the builder is also the mortgage lender? Or you are using the builder's preferred lender? If you think they are going to unfairly deny your mortgage it's a simple solution. Find a different lender that has no relationship with the builder. Your local credit union doesn't care that the house could be sold to someone else for $200k more. They just care that you qualify and the house appraises.
To me it seems like the real problem is you don't know if you can qualify now that the downpayment gift might not be coming. And you are using this "evil greedy builder" angle to deflect from that. If I get denied it's not on me, it must be a big conspiracy with the builder.
Sell the car to reduce your dti. Do everything you can to get to being qualified.
Maybe you can assign your contract to a new buyer and get a fee for your trouble.
Please look in the mirror to identify who caused this problem.
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Still looking for more responses here (with any good news).
