U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 04-18-2009, 06:01 PM
 
2 posts, read 10,355 times
Reputation: 10

Advertisements

Need some professional input. Looking to buy home - will be jumbo loan. We have good income (about 240K/yr), credit scores over 800, but limited cash for downpayment. Are there any reasonably priced 95% ltv loans anymore. A first with a second is fine. Thanks.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 04-18-2009, 06:25 PM
 
26,590 posts, read 56,751,788 times
Reputation: 13073
Quote:
Originally Posted by math View Post
Need some professional input. Looking to buy home - will be jumbo loan. We have good income (about 240K/yr), credit scores over 800, but limited cash for downpayment. Are there any reasonably priced 95% ltv loans anymore. A first with a second is fine. Thanks.
I can almost guarantee that the underwriter is going to have a real problem with that type of income and limited cash for downpayment. I'm guessing that payment shock is going to be a real concern.

I'd cut your budget to the bare bones for a few months to come up with a higher downpayment, or look for less expensive homes.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-18-2009, 06:30 PM
 
596 posts, read 2,653,939 times
Reputation: 202
Can an underwriter deny a loan based solely on payment shock? Once a loan is preapproved, is there still a chance an underwriter could come back with a changed mind on closing day stating payment shock as the reason?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-18-2009, 06:43 PM
 
26,590 posts, read 56,751,788 times
Reputation: 13073
Quote:
Originally Posted by jctx View Post
Can an underwriter deny a loan based solely on payment shock? Once a loan is preapproved, is there still a chance an underwriter could come back with a changed mind on closing day stating payment shock as the reason?
Preapprovals usually have fine print and are usually valid for a specific length of time. That said, normally you are preapproved for up to a certain amount with a certain required d/p and with a max monthly payment. If you stay within those guidelines, you meet all u/w conditions, and nothing else changes with your financial picture, you should be OK.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-18-2009, 09:41 PM
 
2 posts, read 10,355 times
Reputation: 10
Let me clarify if it makes a difference. Al income is w-2 documented. Will underwriter still have problem with high income vs down payment.

95 % LTV used to be pretty common with good credit like ours. Is that no longer true?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-19-2009, 01:57 PM
 
26,590 posts, read 56,751,788 times
Reputation: 13073
Quote:
Originally Posted by math View Post
Let me clarify if it makes a difference. Al income is w-2 documented. Will underwriter still have problem with high income vs down payment.

95 % LTV used to be pretty common with good credit like ours. Is that no longer true?
95% LTV on a conforming, jumbo's have always been 10% down, even for spotless credit.

I think the underwriter is going to have a problem with the fact that you've got a really high income and have been blowing through money like it's water. They are really going to question why you don't have savings in relation to your income.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-19-2009, 09:58 PM
 
587 posts, read 2,014,519 times
Reputation: 224
It is possible the money is tied into investments and not being spent like water. What if he has 250k tied into a CD that hasn't matured yet.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-20-2009, 04:35 AM
 
26,590 posts, read 56,751,788 times
Reputation: 13073
Quote:
Originally Posted by mumra View Post
It is possible the money is tied into investments and not being spent like water. What if he has 250k tied into a CD that hasn't matured yet.
He's still going to need 10% for a jumbo. That's always been the case for conforming loan products.

And nothing for nothing, but $250K into a single CD? That's downright dumb. When putting money into CD's, you ladder so that they mature at different times and if you need to cash out one early you don't pay interest and penalties on all of the money.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-20-2009, 02:44 PM
 
28,461 posts, read 75,275,421 times
Reputation: 18520
Lots of "brutal" tales of woe to share right now. I have personally met other real estate agents whose buyers have been "denied financing" in the current environment for the most specious of arguments. Literally the lender backs-out and the deals die. From lenders second guessing their own appraisals to the borrowers JOB TITLE being a stumbling block.

If you cannot scrap together the extra 5% to get into 90% LTV (and you are still going to have an ugly surcharge for the Jumbo and the PMI) you really do not want to be shopping right now, OR look down market a bit where the same out of pocket cash will get you into 90% or better LTV...
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top