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I'm the same poster with the USDA loan that fell through last week and am looking for some kind of real answers... My lender last week suggested an FHA loan and to come to the table with 8k... My husband and I can probably scrape that together (he said 8k at the maximum). I finally got a hold of my realtor tonight and now there's another FREAKING hitch--Fannie Mae (the seller) wants 1k more to add to my earnest money and that both would be nonrefundable in order to postpone closing to the 17th of June which we need in order to get to the 8k number (2 of his paychecks and 1 1/2 of mine). I am so confused now; my realtor is saying that I need to call my lender tomorrow and ask him why he needs a total of almost 11k to close this house since the loan is for 137500 and it appraises at 180000??? I'm still aghast at the 11k number--I never did understand why my realtor mentioned 11k--she was very irritated with me since I am at the point of withdrawing. There is another house for sale by the builder (DR Horton) which is 12k less and my husband is starting to put pressure on me to look into it or look into a rental for six months. Realtor doesn't want me to walk away from the $50k on this current house and wants me to sell everything I can think of which isn't much--my jewelry might get us 1k but I am wondering at this point why go through all of this? Is this worth it? I love the 137500 house but I'm starting to lose it a little.. What do you all think? Any questions, please ask maybe I haven't been completely clear or as clear as possible..
I am not an expert on loans so I cannot help you there, but it seem you're spreading your self very thin to try and make this deal happen. Remember you still have to live after purchasing in this home. I don't know how much money you have rapped up in this deal, but if you have to start selling things to make it happen you might need to evaluate if you should be doing this. Also there is no rule that say you have to get a home today.
Also don't let your realtor tell you what to do at the end of the day you're the one that is going to be holding the bag.
I think you should cut your losses with this deal. You were financially prepared to do a USDA loan. It didn't happen and now your option is FHA, but you are not financially prepared for an FHA loan. I tend to agree with your husband. I think you should look at a rental for 6 months or just sit idle for 6 months and get your finances better prepared to do an FHA loan, comfortably. If it were me, I would take a few months to get the DP saved for the FHA loan. I would then reapply for a USDA mortgage, if it doesn't go through I would then go FHA.
This is a buyers market. You shouldn't be the ones jumping through unnecessary hoops. In this market, there's a pretty good chance a better deal may come around if you decide to wait. So, don't be afraid to take some time to regroup and get yourself prepared to do an FHA loan.
Whatever you guys decide, I wish you luck!
Also, keep in mind that this Realtor has ulterior motives . . . regardless of how genuine or nice a person he/she may be, they earn money by selling the house. I think it's very insidious that your realtor suggested selling jewelry to come up with earnest money. He/she is seeing the commission go up in smoke. I think you're being pushed into something that you just aren't quite prepared for. It's disappointing, yes. But the housing market isn't going to rebound any time soon. Good deals will still be available in the next few months. I agree that cutting your losses and waiting might be the best option. And, I think I'd look for a different Realtor. Yes, all will be out to make a sale - that's how they make a living, and one can't begrudge that. But this one stepped over the line, if you ask me.
Does your county offer any home buyers programs? Are you a first time buyer? Some banks will over programs with lender-paid mortgage insurance and no downpayments in exchange for a bit higher interest rate. If you've got wiggle room in the monthly payment, and the downpayment is your big hold up, then you might consider finding one of these programs. Credit unions seem to offer them fairly often.
Buying a house is very emotional, but don't allow your emotions to cause you to make bad decisions.
You should NEVER have to sell jewelry or scrape together whole paychecks (that presumably need to go elsewhere) to pay earnest money. At this time, you simply cannot afford to buy that home. Take a step back, try to detach your emotions and wait a few months like you husband has said - I don't like to admit when my husband it right, but I think yours is