So we found a house to buy. Made an offer and seller accepted and agreed to pay closing. We don't have money saved up so we found a loan with 100% financing with BB&T. Decided against the FHA loan option because they have 3% down so taking the best option, we told BB&T to go ahead. Turned in our notice, started packing...

Apartment complex has already rented out our apartment and as of Oct. 9th we don't have anywhere to live. Closing is set for the 30th.

Fast-forward to today - The underwriters want us to put 5% down and are saying they won't give us a loan because they don't like our comparable properties. Add into that closing is in 2 weeks, we don't qualify for the FHA anymore since my fiance's raise goes into affect on Monday, and we already dished out $800 for inspections, appraisal, etc.

So fucking mad.

9/16/2010 8:36:29 PM

umad

9/16/2010 8:37:21 PM

FWP

9/16/2010 8:38:04 PM

that really, really sucks.

but is buying putting NOTHING down really a good idea to begin with? i mean honest question. i don't know.

can you borrow 3% from a family member or something?

[Edited on September 16, 2010 at 8:41 PM. Reason : .]

9/16/2010 8:38:29 PM

the days of 100% loans for people with less than like 800 credit scores are gone.

[Edited on September 16, 2010 at 8:40 PM. Reason : ^ i did 0% down with paying closing costs in cash and it has worked out pretty good]

9/16/2010 8:40:08 PM

We considered waiting until we have a substantial down payment but that would take years. Neither of us have parents who are able to help and I'm a teacher....so, yeah. At this rate, I'm never going to be a homeowner.

We would be paying less for our mortgage than the rent we pay now. And the rate was like under 5%.

My credit score is higher than fiance's and his is over 750.

Quote :

"can you borrow 3% from a family member or something?"

They want 5% and the FHA was the 3% but with the raise that goes into effect Monday, we cannot get the FHA anymore. My dad said he'd help some and I have some but we'd basically live off rice and canned chicken for the next 4 months.

[Edited on September 16, 2010 at 8:43 PM. Reason : sad]

9/16/2010 8:40:59 PM

sad that is a really shittay situation.

9/16/2010 8:41:39 PM

did you use a buyer agent? if so, they didn't handle their shit.

9/16/2010 8:44:54 PM

FWP? Fucking white people? First world problems? Urban Dictionary was not very helpful with this one...

And don't forget the $800 we have already paid in to this house...if we terminate the contract, we just lose that money, right?

^Yes, and now I'm wanting to know how this happened and all he can say is, "Well, yeah, we need to wait it out until the final outcome is announced tomorrow but it's looking bad. Better get a plan B."

[Edited on September 16, 2010 at 8:46 PM. Reason : .]

9/16/2010 8:44:58 PM

just about the same thing happened to me. found out a week before closing i need cash for the down payment. luckly my dad was able to loan/give me money for the down payment.

i wrote a letter to the CEO of wells fargo and got a response with him within 3 days. and offered his appology for our loan officer for misleading us.



[Edited on September 16, 2010 at 8:46 PM. Reason : also said that if we wanted to back out they would refund everything thus far (inspections, etc.)]

9/16/2010 8:45:15 PM

yeah, maybe it's just me, but if you can't afford to put down minimum 5-10% of a home, i don't think you should be buying a home.

9/16/2010 8:45:22 PM

Their position is understandable, but they really fucked you by not telling you about this when you started the entire process.

9/16/2010 8:46:23 PM

did you get preapproved?

9/16/2010 8:46:43 PM

^^^Hence why I'll be a renter for the rest of my life.

^^Yeap, fucked. Me. I am.

^Yeap, we got preapproved for MUCH more than the house we went with cost....It's NOTHING TO DO WITH US OR OUR FINANCES. The comparables the appraiser gave are 2 miles away since none have sold where our potential house is....because no one has moved and there are no empty houses to compare it to. So they want to see houses in the same neighborhood and there are none, according to our realtor.

[Edited on September 16, 2010 at 8:49 PM. Reason : .]

9/16/2010 8:47:03 PM

Quote :

"yeah, maybe it's just me, but if you can't afford to put down minimum 5-10% of a home, i don't think you should be buying a home."

its not that fuck stick, its that they told me that i could finance a down payment, and with the home buyers incentive, i could pay it off right then and there

therefore not needing the cash for the down payment. its not like i went into the situation trying to get a house for free

9/16/2010 8:48:14 PM

For real. Only rich people with lots of money for a downpayment should own a home. The American Dream is only for those with the silver spoon. Also, if you shouldn't be able to own a home without a 5%-10% downpayment, why do they have USDA loans with 100%? Why even offer them?

Do you have a rough draft of that letter you wrote? j/k...but seriously, I don't even know whose fault it is....The guy at BB&T? The underwriters for Frannie Mae? Our Appraiser? Our Realtor?

I mean, really?



[Edited on September 16, 2010 at 8:55 PM. Reason : -]

9/16/2010 8:51:41 PM

That blows

[Edited on September 16, 2010 at 8:57 PM. Reason : e]

9/16/2010 8:52:15 PM

Quote :

"For real. Only rich people with lots of money for a downpayment should own a home. The American Dream is only for those with the silver spoon."

Well, for a couple of years there it was the exact opposite and look where it got us.

^^ They should take some money off for those ugly ass window coverings.

[Edited on September 16, 2010 at 8:54 PM. Reason : .]

9/16/2010 8:53:03 PM

really, i'm a fuck stick because i have a different opinion than you, and don't think it's so sad that things didn't work out perfectly?

my opinion is that if you don't have that amount of money on hand, you aren't financially secure enough to buy a house. whether you actually put that amount down or not is a separate issue. the point is, if you don't have a significant enough cash cushion, i think it's financially irresponsible to buy a home.

don't be so childish just because someone expresses an opinion you don't like.

9/16/2010 8:55:51 PM

^^Actually, giving out ARMs was the reason for this, not giving people houses without downpayments...people living beyond their means caused the housing crisis, not 100% financing.

And this is not an ARM, it is a traditional mortgage for people who offer to move into new neighborhoods and build them up.

^I mean, really though, it was kind of a dick move to come into a thread like this expressing your opinions about 100% financing. Your comment was not necessarily helpful, if you ask me...and that's MY opinion.

[Edited on September 16, 2010 at 8:59 PM. Reason : .]

9/16/2010 8:56:51 PM

This is "Chit Chat" though, not "The Lounge"

9/16/2010 9:07:41 PM

you bring up the topic and then expect to only get certain responses?

my point was that if an individual has a significant savings in place before purchasing a home, then these types of unforeseen situations don't throw a monkey wrench in the deal. i know it sucks that the institutions involved here didn't do things the way you wanted, and it may affect your ability to buy a home, but i think it's a personal responsibility issue to take extra precaution not allow anyone else to screw up your dream.

but i'll leave your thread alone now.

9/16/2010 9:07:51 PM

^^Thanks. I saw that when I posted it...but chit chat doesn't really make it okay to be mean, does it? It just means their might be some nudity and general tomfoolery. It's just not a nice thing to do.

^ I didn't expect to get sympathy for not having the 5% down. That is our own fault that we are paying for a wedding, two cars, and LIFE...It JUST SUCKS and they did us dirty by not telling us until NOW and fucking over every other loan we might have possibly been able to get and now we lose the house we love in the process along with $800. Oh, and the fact that now we are in danger of losing our apartment and having to move/sign a new lease/etc.


I am fucking sad about this. We didn't do anything wrong. It's ALL because of the comparables, NOTHING to do with OUR FINANCES.

[Edited on September 16, 2010 at 9:22 PM. Reason : Sorry, I posted by accident...touchy keypad.]

9/16/2010 9:15:15 PM

lol wut

9/16/2010 9:16:21 PM

come on we all know the american dream is just that, a dream

9/16/2010 9:22:25 PM

Mortgage people are shady as hell.

A thought though, did the property not appraise for your purchase price? If it did not you probably have an out in your contract and a pretty solid reason to get the seller to let the house go cheaper.

If your appraiser did not appraise it for what you are paying then the next one might not either. I would go back to the seller and ask them to reduce the price.

What does the appraisal say?

Are the comparables less than what you are paying for the same house?

9/16/2010 9:34:36 PM

My husband and I just did the same loan through BB&T. It took forever and the closing date kept being pushed back but we never had to do a down payment. Hope it works out for you soon!

9/16/2010 9:36:56 PM

Quote :

"I don't even know whose fault it is....The guy at BB&T? The underwriters for Frannie Mae? Our Appraiser? Our Realtor? "

It sounds like you were screwed by either the appraiser or the bank.

Do you have a copy of the appraisal yet?

9/16/2010 9:38:34 PM

Quote :

"but is buying putting NOTHING down really a good idea to begin with? i mean honest question. i don't know."

The rates are so low it could possibly cost a lot more to wait and save money. The only wild card is having to sell, if the home might need to be sold in the next few years that's when its could get messy, its expensive to sell a house and if there is no equity savings might have to be tapped to get it sold.

I had a client less than six months ago bring $10,000 to a closing to sell a $115,000 house. It was nothing against him, myself, or his neighborhood he just had no equity in the house and had he not had the savings he would not have been able to sell the home.

9/16/2010 9:42:05 PM

The situation you are in is definitely shady and sucks for you. I do hope that it works out for the best.

Howeverrrrr...

Quote :

"For real. Only rich people with lots of money for a downpayment should own a home. The American Dream is only for those with the silver spoon"

just frustrates me. I hope you don't actually think that everyone is "rich" or has "rich" parents who can afford a down-payment in their mid 20s? I came to my first job out of college with $500 in my bank account and put down $19,000 on a house down-payment 3 years later (while still leaving 6 months of living expenses in the bank beyond that). I have a college loan, bought an engagement ring, and my wife and I paid for our own wedding (another indicator that we don't come from a lot of money ) as well in between the time that I graduated and I put down that payment. It can be done. We wanted a house sooner, but I waited to make sure we had the money.


khcadwal

Quote :

"but is buying putting NOTHING down really a good idea to begin with? i mean honest question. i don't know."

Not putting a lot/next to nothing down isn't a huge deal if you just want to keep the cash in hand...HOWEVER, the more important thing is whether you have the ability to put down at least 10% I would say. If you can comfortably say you have at least 10% of the home's value in cash that you would be willing to surrender to buy the house, then you are probably in a decent position to be buying a home. From that point, choosing how much to actually put down is up to you and your bank and how much you want to pay each month etc.

But, if you don't have at least 10% of the home's value in cash (+ 6 months living expenses [mortgage+essentials] imo) at your disposal, you better have a VERY stable job to be considering purchasing a house. At least that is my philosophy. Then again I am pretty conservative with my money.

[Edited on September 16, 2010 at 9:49 PM. Reason : ]

9/16/2010 9:42:53 PM

i just called my friend at BB&T (president of the residential mortgage division)

i think you'll find them singing a different tune tomorrow regarding the comparables

9/16/2010 9:43:02 PM

^ If this is true then damn TWW is like Jesus.

9/16/2010 9:44:25 PM

losing the $800 or whatever in inspections and fees sucks, but if the deal falls through chalk it up to experience and move on. there will be other houses and other deals. there's no need to get so emotional over it, just treat it like any other business deal. besides, the "new" will wear off after the first 6 months or so and it will just be another place to live.

(I went through buying a house last year, and while its an aggravating process, at no time was i ever emotionally attached to this house or any of the other houses i looked at. maybe its different if you're buying a home rather then a house, but that's a different discussion i suppose.)

9/16/2010 9:44:50 PM

Not really emotionally attached to the house. I'm sad about it but more like..."Great, we have to MOVE, resign a lease, Pack/unpack, and we lost $800." I am mostly upset because we were lied to and now that it's too late to do anything about it, we are just now finding this out...so I'm pissed.

9/16/2010 10:01:56 PM

this sucks, and I would try to help but my buddy at BB&t is head of municipal investments.

GOOD LUCK!!

9/16/2010 10:06:00 PM

Obligatory, well obviously you're far too irresponsible to ever be successful in life so die in a fire.

:heart: tww.


But really, sucks ass. At least you didn't continue to buy a house that failed inspection LOL

9/16/2010 10:08:00 PM

quit being a bitch, Kiwi

I expect more from you. Strive for more.

9/16/2010 10:11:47 PM

Quote :

"why do they have USDA loans with 100%?"

cause idiots will take them

9/16/2010 11:34:48 PM

pawprints

9/16/2010 11:39:52 PM

There's nothing wrong with buying a modest, affordable home with no down payment especially if you plan to stay there for a while.

To anybody who disagrees, just look at the number of people in this thread recommending that pawprint get a loan from a family member. Honestly, almost everybody I know who has bought a home has gotten a loan/gift from a family member.

So what does that mean? People with no money down don't deserve homes but people who can scrounge around for cash from family do? That's bullshit.

Sorry this happened to you, print.

9/17/2010 12:02:54 AM

Quote :

"maybe it's just me, but if you can't afford to put down minimum 5-10% of a home, i don't think you should be buying a home."

Yep.

...especially since that means you have no emergency fund, etc. If anything happened, you could find yourself in a jam.

Quote :

"Actually, giving out ARMs was the reason for this, not giving people houses without downpayments...people living beyond their means caused the housing crisis, not 100% financing."

[NO]

I'd say that 100% financing to people who shouldn't have been offered it was the A#1 root cause of the housing crisis.

Quote :

"Not putting a lot/next to nothing down isn't a huge deal if you just want to keep the cash in hand...HOWEVER, the more important thing is whether you have the ability to put down at least 10% I would say. If you can comfortably say you have at least 10% of the home's value in cash that you would be willing to surrender to buy the house, then you are probably in a decent position to be buying a home. From that point, choosing how much to actually put down is up to you and your bank and how much you want to pay each month etc. But, if you don't have at least 10% of the home's value in cash (+ 6 months living expenses [mortgage+essentials] imo) at your disposal, you better have a VERY stable job to be considering purchasing a house. At least that is my philosophy. Then again I am pretty conservative with my money."

Yep, agreed. That's actually exactly what I did (saved 20% to put down, but ended up doing 100% financing...I keep the money in fairly stable, fairly liquid investments). Agreed on all the rest, too...at a BARE minimum, you should have 5% and 3 months worth of living expenses. I'm NOT all that conservative with money in a lot of ways (I mean, I stay totally out of debt and live below my means, but I also invest in ways that would make some people lose sleep), and I still agree that if you can't come up with that, you should definitely wait to buy a home.

[Edited on September 17, 2010 at 12:04 AM. Reason : but I do sympathize with having the rug pulled out from under you (though I think it's for the best)]

9/17/2010 12:03:47 AM

Quote :

"^^Actually, giving out ARMs was the reason for this, not giving people houses without downpayments...people living beyond their means caused the housing crisis, not 100% financing."

Don't you think that giving people mortgages when they have no vested interest (down payment) contributed to the economic downturn?

Quote :

"we are paying for a wedding, two cars, and LIFE..."

It's an opportunity cost. If I really wanted a house, I'd definitely give up having a car payment. There are plenty of cars that cost 4k that could last for years and would free you from making the bank rich on interest from car loans. Basically, unless you want to sell your soul for a high paying job, you have to make sacrifices.

9/17/2010 12:15:42 AM

is the seller willing to come down on price to make the deal work???

also, 100% financing right now is not a bad idea. home values aren't going to decrease much more.

I disagree with some of you in here. Not everyone can afford to put 5-10% down on a home. you can get a mortgage for what you pay in rent and if that rent is within your budget than you may as well buy a home.

there were a few things that caused the housing crisis but a lot of it was caused by banks giving people more than they could afford.

[Edited on September 17, 2010 at 12:25 AM. Reason : ..]

9/17/2010 12:19:56 AM

its fucked up since you can always buy a house cheaper than you can rent something half the size every time i'm tired of our house and paying the mortgage (1300 per month), i have to remind myself anything we can rent for less will be tiny

9/17/2010 12:26:48 AM

its fucked up since you can always buy a house cheaper than you can rent something half the size every time i'm tired of our house and paying the mortgage (1300 per month), i have to remind myself anything we can rent for less will be tiny

9/17/2010 12:26:48 AM

Quote :

"theDuke866:Yep. ...especially since that means you have no emergency fund, etc. If anything happened, you could find yourself in a jam."

Uhhhh, if somebody spent their emergency fund on a downpayment, then they too could find themselves in a jam...right?

Quote :

"ShawnaC123: It's an opportunity cost. If I really wanted a house, I'd definitely give up having a car payment. There are plenty of cars that cost 4k that could last for years and would free you from making the bank rich on interest from car loans. Basically, unless you want to sell your soul for a high paying job, you have to make sacrifices."

I'm afraid I agree. I didn't realize there were multiple cars and a wedding tied up in this thing.

People, there's nothing wrong with driving a really old used car and having a party instead of a wedding. The people who have new cars, weddings, and new homes generally have those things because they've "sold their soul for a high-paying job" or more likely cause someone has helped with money. If you don't have someone to help you, then you can't have all those things. Period.

Of course, you could save for all those things. But I think you're a fool to eat Ramen so you can serve filet to your wedding guests.

9/17/2010 12:44:34 AM

Quote :

"people who have new cars, weddings, and new homes generally have those things because they've "sold their soul for a high-paying job""

Nobody wants to buy the soul of a no-talent hippy.

9/17/2010 1:03:11 AM

^Tell that to the poster before me.

It's in quotes for a reason.

9/17/2010 2:35:16 AM

Quote :

"I disagree with some of you in here. Not everyone can afford to put 5-10% down on a home. you can get a mortgage for what you pay in rent and if that rent is within your budget than you may as well buy a home. "

I have to disagree somewhat with that. Yes you can get a mortgage for what you rent (especially when you consider tax benefits). However it is not a 1:1 comparison.

Renting has the huge advantage of having very little responsibility tied to it. Pay your rent every month and you're good to go. Refrigerator dies? Call the landlord. Pipe bursts? Call the landlord. Compressor dies? Call the landlord. Along with the fact that you don't have to worry about repairs, it also is more convenient if you suddenly lost your job or something. If you buy a house and can't afford a down-payment...you probably would be SOL pretty quickly if you lost your job. With an apartment, if you really needed, you know you could break the lease at the tune of 1-2 months rent and shack with a friend/family if it came to that. If you're in a house, the bank is going to come to you with an open hand looking for the mortgage payment each month regardless.

When we bought our house, we definitely bought one that, after the tax incentives, demanded a mortgage payment close to what I/we had been renting an apartment at for 3 years, but I wasn't financially comfortable enough to buy a house before that point despite the rent being well within our budget.

Not saying that applies to the OP at all. I just don't think that the mentality of "if I can afford rent, I might as well buy a house with a mortgage payment close to the cost of my rent payment" is that good unless you have a very stable job or, as suggested earlier, have your finances in order such that you have sufficient savings.

[Edited on September 17, 2010 at 8:40 AM. Reason : ]

9/17/2010 8:36:21 AM

I went through hell with my FHA loan this summer as well.

I was buying a $230,000 house and had around $25,000 in the bank with a great credit score, but I had to get a co-signor because I hadn't been at my current job for at least two years.

My mom co-signed. She was a teacher for 33 years and is getting decent retirement. She's also been a personal trainer for the last 7 years but only recently formed an LLC when she retired from teaching. So I originally got approved for the 230K. We didn't make the original contract date, so I had to reapply. We get down to three days before closing, and at the LAST POSSIBLE STEP, they turn down the loan because my mom hasn't been an LLC for at least two years. WHY THE FUCK COULDN'T THEY HAVE TOLD US THAT AT THE BEGINNING.

During all this mess, the sellers are getting impatient as hell and put the house back on the market. I was originally going to move in a month before my current lease was up, but that was looking to be in jeopardy. Luckily my step-dad comes in co-signs (he's been a physical therapist for 20+ years) without me even asking. Although I think he's awesome, him and my mom have only been married for 5 years, so I didn't want to ask him in the first place (I had hard enough time asking my mom to co-sign, but it was the only way I was going to get the house).

Sellers became nice again and let me move in before the actual closing date so I wouldn't be without a house for a week.

But I signed a contract for the house on April 29th. I didn't close until August 4th. The FHA loan process is FUCKING RIDICULOUS. So after being pre-approved for 230K before we even went into the contract, it still took me over 3 months to get the final mortgage approved. I had to give them bank statements and pay stubs every week so that they would know I hadn't been fired or gone on a spending spree.

If I hadn't been absolutely in love with my house, I would have bailed out a month in.

9/17/2010 8:57:20 AM