07-25-2012 07:36 PM
Finally got my Mortgage issues figured out, but man this is just been way too hard.
We were building a new home, got approved for FHA and had all the cash to get the deal done. But I started looking at other options to save money, USDA and conventional.
Decided to go with USDA instead, and had to use my down payment money to pay off my car to get my backend ratio in range. Well USDA denied me. So I went down the path of conventional, couldn't get approved because of the dispute comments on my report. After a long rapid recore I got it fixed, score still good and I have the down and cash reserves. Still denied.
So I had to start looking at FHA again, I was approved very easy. But now I have to sell my car to pull the cash out and either buy my car back with a loan or buy something else. Add that to the 30k I still have in the bank to get it done. We close in 2 weeks. God this has been a terrible experiance. When I bought 8 years ago and went conventional it was way easier then this.
07-26-2012 03:46 PM - edited 07-26-2012 03:49 PM
And in about two weeks, it will be behind you. Sorry it's been tough.
When I bought my house a month ago, conventional, 20% down, the lender suddenly would not accept well established (aged 3 months or longer - in some cases years old) CD's, annuities, or retirement. They wanted LIQUID cash in the bank. To me, a CD is liquid cash becuase you can cash it out at any time for most of the value. According to the lender, nope. They actually made it a condition of the loan that I had to cash out 4 large CD's, show the money trail from CD to savings, and have the bank write a letter stating what was done including all account numbers. (lol - and after paying the penalties, the cd's reduced to the bare minimum to stay open, they gave me an "exception" to cashing everything out - I only had to cash out 2 cd's.)
The kicker? I had enough CASH in savings, at the time of the application, to close and to pay for out of pocket related expenses. The CD's, annuities, and retirement were extra that we didn't need to use or want to touch. The bank would not consider any direct deposits made in the prior few months before the app was made, even though it was a well established direct deposit that had been occuring for more than a year. The lender also calculated the cost for appraisal, inspections, and insurance premiums to be in the cash pot. *eye roll*.
After I closed, I moved the money back into 2 of the cd's bringing them back to their former glory. I put a little back in the other 2 cd's. They should be back to their former glory in a few months. And I paid cash for a used truck. I wasn't a credit risk at all - no debt, no lates. It felt like the underwriter was looking for ways to thwart the deal, knowing that I would jump through whatever hoops she put out there. Her conditions were off the wall and unheard of before in my lifetime!
Sometimes we just gotta suck it up and accept their crazy rules to get the end product - the house.
Maybe you can sell the car to a family member? Then "buy it back" when the deal is done with the house?
07-27-2012 10:56 PM
Things are so much more difficult now than they were back then. Unfortunately, lenders have completely swung in the opposite direction. Now we see super qualified buyers all the time having to jump through hoops to get deals done. It usually works out in the end but it's just much more of a PITA!