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Established Member
vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

Yeah we have an offer accepted with closing scheduled for March 26th.

I assumed i could pay 2011 and do payments on 2012, i have learned different now.

I dont qualify for most them down payment assiatance programs.

 

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Filed 2011 2012 tax returns closing March26th

Your income should definitely qualify you. Is it a credit score issue?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Established Member
vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

middle score is 700

Its my IR$ debt is the problem, i know now i can owe no taxes to get FHA approval.

Before that i had down and closing i thought i was in clear with a payment plan with IR$.

 

 

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Filed 2011 2012 tax returns closing March26th

Right. I understand the debt to the IRS is a problem. I was thinking you would pay the IRS off with an installment loan so that you can show it's been paid and use the downpayment assistance from the program as a downpayment on the house and then use part of your savings for closing costs.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Established Member
vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

If i can get $10,000 rolled into a 2nd mortgage im good to go.

I have $12,000 i can put toward the house.

I could pay $4500 to IR$ and still have down and closing. If i can get $10K added to the loan to cover rest of IR$ im there.

But my LO never called me again today so i cant ask if thats doable or not.

I think i need hunt a new lender Monday.

 

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Filed 2011 2012 tax returns closing March26th

Things can be slow on the weekends. I would call back Monday afternoon if you don't have a phone call by Monday morning.

In the meantime, since you know the taxes have to be paid, I would start looking around for installment loans to apply for. Start to get an idea on what monthly payment you might be able to expect so that you can relay that to your loan officer so he can verify your DTI is still okay for approval. Don't apply until you have the all clear from your loan officer that that is an acceptable form of payment.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Established Member
vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

I cant do that, DTI will be too high. I have to find a lender who will add a 2nd mortgage to pay off my taxes.

My housing DTI is at 37% overall 47%. Adding a loan to pay it would put me near 60%.

I think i pay off my car that brings overall DTI down to 39%. Then i should be able to get the housing lender to add $15,000 to my approval.

$115K mortgage with $15K as 2nd mortgage or something.

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Filed 2011 2012 tax returns closing March26th

I have heard of a second mortgage for a downpayment but not for taxes. If you find a lender that is willing to roll it into the loan, it will most likely be rolled into the first mortgage at closing. Your downpayment should lower your DTI some if not already factored in. Your downpayment can come from assistance and your savings can be used for closing costs and reserves.

It sounds like we are just shuffling the same insufficient amount of funds to different places. Rolling your taxes into a second mortgage will also raise your DTI as your mortgage payment will be higher. Granted, your monthly payment will be lower as it is paid over a 30 year term vs a 10 year term. 47% is pretty high. For FHA loans, usually the back end ratio can't be greater than 43%. So you are going to need to pay off your car loan AND put down more than 3.5% to get your DTI down.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
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Re: Filed 2011 2012 tax returns closing March26th

The biggest problem is where is the home equity coming from? Lender is only going to give the lower of the appraisal or selling price. Appraisal wont be adjusted but selling price could be adjusted, but still couldnt be more then the appraisal.

 

If you were paying a 20% down payment as an example, just lower your down payment. But if that was an option for you, then you need to inform them your intentions, cause it can cause major delays.

Good Luck
May all your dreams and wishes become a reality!
Established Member
vinylpalooza
Posts: 32
Registered: ‎01-31-2013
0

Re: Filed 2011 2012 tax returns closing March26th

Well i have learned a lesson, if you want anything pay the man for that right.

Were going to let the house go and make an offer on a short sale and take the waiting time to pay off 2011 and get a payment plan at $25 a month for 2012. We may have as much as 6 months. If not ill have to drag it to 6 months delaying closing.

They did me a favor, the house im offering on is better bigger if we get it. Just hit the market Saturday.

Because the property tax is $600 a year lower it ends up costing the same each month for 500 sq ft added space and a better pool area.

I wanted out of Oregon soon but the other house is worth waiting another 4 months for and then $600 a year buys more house rather than handed over to yet more taxes.

Win Win!

 

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012

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