Home › Forums › Closed Forums › Buying and Selling RE › Why can I not get a loan?
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davelj.
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January 20, 2009 at 3:56 PM #332412January 20, 2009 at 4:19 PM #331896
sdnerd
Participant[quote=CA renter]From what I understand, if a borrower does not have 30% equity in an existing home, they will not qualify for a new loan; and that is a perfectly reasonable response to the actions of borrowers over the past few years.
[/quote]Is this really the case? Never heard that before. Having to quality for both payments would make sense though. I hope I don’t have to pay down to 30% before buying something bigger.
Northcounty,
It’s clear you are frustrated.
For whatever it’s worth, I’m in a relatively similar situation as yourself. I know it’s frustrating as hell, especially with a growing family.
As you are seeing, this forum has a lively mix of people. The trick is to filter out the doom and gloomers, the grumps, and the cheerleaders. In the middle of those are some really insightful people, with truly invaluable information and insight.
While nobody knows exactly what is going to happen, I would agree with the majority that the most likely outcome is that the $800k homes of today are going to be falling. The question is how fast, and how soon and that’s an answer nobody can give you.
I’d stay put or rent for another year to re-assess just that. At least that’s my plan of action.
January 20, 2009 at 4:19 PM #332232sdnerd
Participant[quote=CA renter]From what I understand, if a borrower does not have 30% equity in an existing home, they will not qualify for a new loan; and that is a perfectly reasonable response to the actions of borrowers over the past few years.
[/quote]Is this really the case? Never heard that before. Having to quality for both payments would make sense though. I hope I don’t have to pay down to 30% before buying something bigger.
Northcounty,
It’s clear you are frustrated.
For whatever it’s worth, I’m in a relatively similar situation as yourself. I know it’s frustrating as hell, especially with a growing family.
As you are seeing, this forum has a lively mix of people. The trick is to filter out the doom and gloomers, the grumps, and the cheerleaders. In the middle of those are some really insightful people, with truly invaluable information and insight.
While nobody knows exactly what is going to happen, I would agree with the majority that the most likely outcome is that the $800k homes of today are going to be falling. The question is how fast, and how soon and that’s an answer nobody can give you.
I’d stay put or rent for another year to re-assess just that. At least that’s my plan of action.
January 20, 2009 at 4:19 PM #332311sdnerd
Participant[quote=CA renter]From what I understand, if a borrower does not have 30% equity in an existing home, they will not qualify for a new loan; and that is a perfectly reasonable response to the actions of borrowers over the past few years.
[/quote]Is this really the case? Never heard that before. Having to quality for both payments would make sense though. I hope I don’t have to pay down to 30% before buying something bigger.
Northcounty,
It’s clear you are frustrated.
For whatever it’s worth, I’m in a relatively similar situation as yourself. I know it’s frustrating as hell, especially with a growing family.
As you are seeing, this forum has a lively mix of people. The trick is to filter out the doom and gloomers, the grumps, and the cheerleaders. In the middle of those are some really insightful people, with truly invaluable information and insight.
While nobody knows exactly what is going to happen, I would agree with the majority that the most likely outcome is that the $800k homes of today are going to be falling. The question is how fast, and how soon and that’s an answer nobody can give you.
I’d stay put or rent for another year to re-assess just that. At least that’s my plan of action.
January 20, 2009 at 4:19 PM #332338sdnerd
Participant[quote=CA renter]From what I understand, if a borrower does not have 30% equity in an existing home, they will not qualify for a new loan; and that is a perfectly reasonable response to the actions of borrowers over the past few years.
[/quote]Is this really the case? Never heard that before. Having to quality for both payments would make sense though. I hope I don’t have to pay down to 30% before buying something bigger.
Northcounty,
It’s clear you are frustrated.
For whatever it’s worth, I’m in a relatively similar situation as yourself. I know it’s frustrating as hell, especially with a growing family.
As you are seeing, this forum has a lively mix of people. The trick is to filter out the doom and gloomers, the grumps, and the cheerleaders. In the middle of those are some really insightful people, with truly invaluable information and insight.
While nobody knows exactly what is going to happen, I would agree with the majority that the most likely outcome is that the $800k homes of today are going to be falling. The question is how fast, and how soon and that’s an answer nobody can give you.
I’d stay put or rent for another year to re-assess just that. At least that’s my plan of action.
January 20, 2009 at 4:19 PM #332422sdnerd
Participant[quote=CA renter]From what I understand, if a borrower does not have 30% equity in an existing home, they will not qualify for a new loan; and that is a perfectly reasonable response to the actions of borrowers over the past few years.
[/quote]Is this really the case? Never heard that before. Having to quality for both payments would make sense though. I hope I don’t have to pay down to 30% before buying something bigger.
Northcounty,
It’s clear you are frustrated.
For whatever it’s worth, I’m in a relatively similar situation as yourself. I know it’s frustrating as hell, especially with a growing family.
As you are seeing, this forum has a lively mix of people. The trick is to filter out the doom and gloomers, the grumps, and the cheerleaders. In the middle of those are some really insightful people, with truly invaluable information and insight.
While nobody knows exactly what is going to happen, I would agree with the majority that the most likely outcome is that the $800k homes of today are going to be falling. The question is how fast, and how soon and that’s an answer nobody can give you.
I’d stay put or rent for another year to re-assess just that. At least that’s my plan of action.
January 20, 2009 at 4:47 PM #331911gn
Participant…we haven’t even gotten that far in discussions with the banks. The problem is that 90% jumbo loans with PMI just don’t exist anymore, period. We haven’t even gotten far enough to disclose any of that information
So, even if you can find a lender that offer 90% jumbo loans with PMI, once that lender learn about your current mortgage, it’ll require that you qualify for 2 mortgages. I realize that currently you only care about the first issue (90% loan), eventually, you’ll have to deal with the second issue (2 mortgages).
January 20, 2009 at 4:47 PM #332247gn
Participant…we haven’t even gotten that far in discussions with the banks. The problem is that 90% jumbo loans with PMI just don’t exist anymore, period. We haven’t even gotten far enough to disclose any of that information
So, even if you can find a lender that offer 90% jumbo loans with PMI, once that lender learn about your current mortgage, it’ll require that you qualify for 2 mortgages. I realize that currently you only care about the first issue (90% loan), eventually, you’ll have to deal with the second issue (2 mortgages).
January 20, 2009 at 4:47 PM #332325gn
Participant…we haven’t even gotten that far in discussions with the banks. The problem is that 90% jumbo loans with PMI just don’t exist anymore, period. We haven’t even gotten far enough to disclose any of that information
So, even if you can find a lender that offer 90% jumbo loans with PMI, once that lender learn about your current mortgage, it’ll require that you qualify for 2 mortgages. I realize that currently you only care about the first issue (90% loan), eventually, you’ll have to deal with the second issue (2 mortgages).
January 20, 2009 at 4:47 PM #332353gn
Participant…we haven’t even gotten that far in discussions with the banks. The problem is that 90% jumbo loans with PMI just don’t exist anymore, period. We haven’t even gotten far enough to disclose any of that information
So, even if you can find a lender that offer 90% jumbo loans with PMI, once that lender learn about your current mortgage, it’ll require that you qualify for 2 mortgages. I realize that currently you only care about the first issue (90% loan), eventually, you’ll have to deal with the second issue (2 mortgages).
January 20, 2009 at 4:47 PM #332437gn
Participant…we haven’t even gotten that far in discussions with the banks. The problem is that 90% jumbo loans with PMI just don’t exist anymore, period. We haven’t even gotten far enough to disclose any of that information
So, even if you can find a lender that offer 90% jumbo loans with PMI, once that lender learn about your current mortgage, it’ll require that you qualify for 2 mortgages. I realize that currently you only care about the first issue (90% loan), eventually, you’ll have to deal with the second issue (2 mortgages).
January 20, 2009 at 4:52 PM #331901sdduuuude
Participantncounty4 – that’s just the Piggs making sure we only help people with tough skin.
But I do notice that you have replied to the nasty comments and not to those which are analytical in nature. (That is a pet peeve of mine with forums in general – people ignore the good and strike back at the bad, making the forum less useful and valuable.)
XBoxBoy and I show that this isn’t a wise decision, yet no comment from you on it.
Also, your question has been answered (You’re welcome, by the way)
– Because the banks expect the house price to drop.
– Because it is more house than you can afford.
– Two mortgages may raise a red flag.
– Because if it turns into a rental, you will not make enough rent to cover the mortgage.
– Because you aren’t putting enough down.
– Because the world is a different place than it was two years ago.Scardy cat said it best. If the banks are scared of it, you should be, too.
January 20, 2009 at 4:52 PM #332237sdduuuude
Participantncounty4 – that’s just the Piggs making sure we only help people with tough skin.
But I do notice that you have replied to the nasty comments and not to those which are analytical in nature. (That is a pet peeve of mine with forums in general – people ignore the good and strike back at the bad, making the forum less useful and valuable.)
XBoxBoy and I show that this isn’t a wise decision, yet no comment from you on it.
Also, your question has been answered (You’re welcome, by the way)
– Because the banks expect the house price to drop.
– Because it is more house than you can afford.
– Two mortgages may raise a red flag.
– Because if it turns into a rental, you will not make enough rent to cover the mortgage.
– Because you aren’t putting enough down.
– Because the world is a different place than it was two years ago.Scardy cat said it best. If the banks are scared of it, you should be, too.
January 20, 2009 at 4:52 PM #332315sdduuuude
Participantncounty4 – that’s just the Piggs making sure we only help people with tough skin.
But I do notice that you have replied to the nasty comments and not to those which are analytical in nature. (That is a pet peeve of mine with forums in general – people ignore the good and strike back at the bad, making the forum less useful and valuable.)
XBoxBoy and I show that this isn’t a wise decision, yet no comment from you on it.
Also, your question has been answered (You’re welcome, by the way)
– Because the banks expect the house price to drop.
– Because it is more house than you can afford.
– Two mortgages may raise a red flag.
– Because if it turns into a rental, you will not make enough rent to cover the mortgage.
– Because you aren’t putting enough down.
– Because the world is a different place than it was two years ago.Scardy cat said it best. If the banks are scared of it, you should be, too.
January 20, 2009 at 4:52 PM #332343sdduuuude
Participantncounty4 – that’s just the Piggs making sure we only help people with tough skin.
But I do notice that you have replied to the nasty comments and not to those which are analytical in nature. (That is a pet peeve of mine with forums in general – people ignore the good and strike back at the bad, making the forum less useful and valuable.)
XBoxBoy and I show that this isn’t a wise decision, yet no comment from you on it.
Also, your question has been answered (You’re welcome, by the way)
– Because the banks expect the house price to drop.
– Because it is more house than you can afford.
– Two mortgages may raise a red flag.
– Because if it turns into a rental, you will not make enough rent to cover the mortgage.
– Because you aren’t putting enough down.
– Because the world is a different place than it was two years ago.Scardy cat said it best. If the banks are scared of it, you should be, too.
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