Buying A Home
elinrich
member
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
We don't qualify for a conventional loan...advice
We want to go conventional with 20% down on our new house but don't qualify cause we still own our current house making our DTI above the allowed %. So we have to go FHA. Question, will other lenders still tell us the same thing since the numbers and math are all the same or can different lenders make "things happen"?
We won't be closing on this sale till Nov 30 and we close on our new house Nov 20.
Re: We don't qualify for a conventional loan...advice
Yes, but does this DTI include the payoff of the existing mortgage loan that you have include the new one you will get??? That loan will disappear from your DTI when you sell and the funds from escrow pay off your exisining mortgage loan.
Be sure your bank took this loan out of DTI. I've seen it happen where they haven't back in underwriting.
As for "making things happen" umm no. That's how we got the mortgage mess in our country. The regulations for lending are super strict now.
Anyway, if you do have to FHA, it takes about 60-90 days. And, no they cannot make it move faster, it's government. Also, they will request a ton of paperwork.
If the difference between FHA and conventional is only hindered by 10 days, I would try to push off closing those 10 or 11 days.
I think I read that regardless of your DP, with FHA you have to pay PMI for a set number of years. If that is true, you will lose a lot of money that you could have otherwise saved if you had waited those 10 days.
See if your seller would work with you and talk to your bank about qualifying after the hypothetical closing on your current home.
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I would do everything in your power to push back the new home closing until 11/30 or 12/1 or push up the sale of your house. With FHA I believe you pay an upfront PMI (1% of the loan) plus you will have monthly PMI for 5 years unless you refi. And with refinancing you'll be out of pocket some additional costs most likely.
Even if you have to move 2 times or stay in a hotel for a few night and pay storage fees on your stuff, you'll save way more money.