Im currently in escrow on my new build home. The house was 350k. Upon meeting with the broker when it all began he said i needed to pay down my credit cards and save 10%. I thought id only have to save 5% But i said i could do it anyway.
Unfortunately by the time of closing i only had the 10% deposit. 27k of this was invested in the house. Floors, builders depoist and electrical. I didnt hav ethe credit cards down as i had hoped. The closing date was the 23rd August and i managed to pay down each of the credit card balances under 10% for both cards. They were at 33%.
My creidt score has been improving slowly and is now at around 680-701 range froom all 3 bureaus.
The broker said that even with the 10% down, and my credit cards all paid down he cant get me a morttgage/ So im currently in mortgage limbo.
They had me sign up to an account that gave me a line of credit for $5000 to add on some points to my credit score. Its showing on one of the bureaus but not the other two so the broker is now saying theyre waiting for that .
I am self emplyed and im not getting a tax statement loan, but they are gettng me a bank statement loan, where they look at all the credits to my account and get the mortgage that way.
So im looking for a bit of advice, i feel its crazy that i cant get a mortgage with 'good' credit and 10% down.
is there anyone that could chime in and give me a bit of advice please, im beginning to lose hope and i really dont want to lose that 27k i have invested in the home.
the only bank statement loan i know about requires 15% down
5% down is for traditional mortgage loans. a bank statement loan is sub prime.
I am lgoing to see about an fha loan.
So DallasLoanGuy, there are no 10% bank statement loans at all? im really begining to quiestion the promises of my broker. Now theyre asking for 15% also. Which is an extra 17,500. Which i simply dont have right now.
With a 700 score, there is a lender literally located down the street from me that offers bank statement loans for self-employed, goes to 90% with a 700 credit score (85% with a 650 score). I consider the rates sub-prime... although they have a similar program that allows all of that + requires 6-12 months PITI in reserves, rates are a little better.
FHA still requires your tax returns to qualify, but will go up to a 56.99% DTI.
So i thought id give a little update to this horrendous experience.
The broker finally came back to me and said, we cant find you a loan whilst you are self employed. The only thing to do is to find a job that has a salry of 80k and stay there for a month in order to get two pay stiubs. Then they could get me a mortgage at 5% down.
Fortunately for me, i have someone who could help me and hire me for the month, paying the quiivalent of 80k annually.
I contact the broker and the sales man, tell them i obtained a joba nd did the impossible. The broker says great news. As does the sales man.
I get up this morning and then the sales man hits me with two charges from the builder totalling $5000 for not closing on time. Even though i would be closing within ten days. It is past the original date but im so frsutrated that they would harge me $5000 when i have done everything i could to get this mortgage.