Why can I not get a loan?

[Daniel]

nc4, ok, I’ll bite: I’m in my early thirties, just like you. I have a spouse and kids, just like you. We make $200K+, just like you. Our FICOs are 800+, just like yours. As far as assets, let’s say we wouldn’t even need a mortgage if we were to “liquidate all our assets for housing”, as you nicely put it.

Still, we rent. We rent a house that no long ago was “worth” in the seven figures. Why? Because, although I agree with most of your statements, I take exception to one: “in our tax bracket, renting does not make sense”. Yes, today it does (as it did last year, and the year before, and the year before). It makes perfect sense in La Jolla, and Del Mar, and Carmel Valley, and in all areas that haven’t (yet) come down as much. Just like it made perfect sense to stay away from stocks a decade ago.

Honest advice: find a house you like, a house you’d be happy living in as your own, and rent for a couple of years. If you must own (for emotional or practical reasons, as I really think that financially it doesn’t make any sense), then stay with a conforming jumbo and buy smaller or farther away.

I know, it sucks turning thirty during the biggest housing bubble in history. You think that you only have two options, both unappealing: grossly overpay for a house you like, or settle for one that you don’t like. I’m here to tell you that there is a third option: wait.

[DWCAP]

wow, if my comments were “a little sharp” we have gotten alittle thin skinned on this site. Apparently I have gotten under your skin alittle nc, and this in no way was my intention. So here is my points, worded alittle more gently.

1)It would have been nice to state you already own a residence in the OP. It may change peoples advice to know you own a townhome already.

2)Lenders are scared of nonconforming loans. If you must buy now, is it possible to expand your purchase areas to other, less expensive areas where your DP will go farther and you can maybe qualify for a jumbo conforming loan? I dont follow the loan programs, but there should still be an available jumbo-conforming market. 545k+80k is still ~625k. Is there really no acceptable houses for sale in San Diego right now for less than 625k?

3) Are you willing to rent in the area you are looking in for the next year? If you are not, there is no point talking about that. It may be a long time before lenders start offering the programs you want again. You could save alot of money renting for a larger DP, AND have the house you want now.

Or was your intent to be advised of a program that you were unable to find on your own. That is a very different question than, “please advise”.

[DWCAP]

wow, if my comments were “a little sharp” we have gotten alittle thin skinned on this site. Apparently I have gotten under your skin alittle nc, and this in no way was my intention. So here is my points, worded alittle more gently.

1)It would have been nice to state you already own a residence in the OP. It may change peoples advice to know you own a townhome already.

2)Lenders are scared of nonconforming loans. If you must buy now, is it possible to expand your purchase areas to other, less expensive areas where your DP will go farther and you can maybe qualify for a jumbo conforming loan? I dont follow the loan programs, but there should still be an available jumbo-conforming market. 545k+80k is still ~625k. Is there really no acceptable houses for sale in San Diego right now for less than 625k?

3) Are you willing to rent in the area you are looking in for the next year? If you are not, there is no point talking about that. It may be a long time before lenders start offering the programs you want again. You could save alot of money renting for a larger DP, AND have the house you want now.

Or was your intent to be advised of a program that you were unable to find on your own. That is a very different question than, “please advise”.

[DWCAP]

wow, if my comments were “a little sharp” we have gotten alittle thin skinned on this site. Apparently I have gotten under your skin alittle nc, and this in no way was my intention. So here is my points, worded alittle more gently.

1)It would have been nice to state you already own a residence in the OP. It may change peoples advice to know you own a townhome already.

2)Lenders are scared of nonconforming loans. If you must buy now, is it possible to expand your purchase areas to other, less expensive areas where your DP will go farther and you can maybe qualify for a jumbo conforming loan? I dont follow the loan programs, but there should still be an available jumbo-conforming market. 545k+80k is still ~625k. Is there really no acceptable houses for sale in San Diego right now for less than 625k?

3) Are you willing to rent in the area you are looking in for the next year? If you are not, there is no point talking about that. It may be a long time before lenders start offering the programs you want again. You could save alot of money renting for a larger DP, AND have the house you want now.

Or was your intent to be advised of a program that you were unable to find on your own. That is a very different question than, “please advise”.

[DWCAP]

wow, if my comments were “a little sharp” we have gotten alittle thin skinned on this site. Apparently I have gotten under your skin alittle nc, and this in no way was my intention. So here is my points, worded alittle more gently.

1)It would have been nice to state you already own a residence in the OP. It may change peoples advice to know you own a townhome already.

2)Lenders are scared of nonconforming loans. If you must buy now, is it possible to expand your purchase areas to other, less expensive areas where your DP will go farther and you can maybe qualify for a jumbo conforming loan? I dont follow the loan programs, but there should still be an available jumbo-conforming market. 545k+80k is still ~625k. Is there really no acceptable houses for sale in San Diego right now for less than 625k?

3) Are you willing to rent in the area you are looking in for the next year? If you are not, there is no point talking about that. It may be a long time before lenders start offering the programs you want again. You could save alot of money renting for a larger DP, AND have the house you want now.

Or was your intent to be advised of a program that you were unable to find on your own. That is a very different question than, “please advise”.

[DWCAP]

wow, if my comments were “a little sharp” we have gotten alittle thin skinned on this site. Apparently I have gotten under your skin alittle nc, and this in no way was my intention. So here is my points, worded alittle more gently.

1)It would have been nice to state you already own a residence in the OP. It may change peoples advice to know you own a townhome already.

2)Lenders are scared of nonconforming loans. If you must buy now, is it possible to expand your purchase areas to other, less expensive areas where your DP will go farther and you can maybe qualify for a jumbo conforming loan? I dont follow the loan programs, but there should still be an available jumbo-conforming market. 545k+80k is still ~625k. Is there really no acceptable houses for sale in San Diego right now for less than 625k?

3) Are you willing to rent in the area you are looking in for the next year? If you are not, there is no point talking about that. It may be a long time before lenders start offering the programs you want again. You could save alot of money renting for a larger DP, AND have the house you want now.

Or was your intent to be advised of a program that you were unable to find on your own. That is a very different question than, “please advise”.

[Scarlett]

HLS, where R U?

NorthCounty4, since you say that you haven’t even gotten into the home details yet with the lenders, then perhaps it’s that the 90% LTV would be non-conforming (is that the right term?) loan. The key being >546K loan AND having <20% down.

In the bubble days, when I bought a house with less than 20% down, I got 2 loans, one for 80% of the sale price, and another one - a Home equity line of credit (HELOC) interest only for the (20%-DownPayment). Nowadays, for my price ranges there are no more interest only loans like that, since I asked. I qualified though to buy up to a 700K house with 5-10% down with FHA loan, which is not a good deal usually. (this was Chase) (and, no, I don't think we can afford 700K home, and we aren't buying yet).

If that is true, I agree with CONCHO, that means all the higher end houses are in trouble, because it may mean that only people with enough downpayment to bring the loan under 546K (i.e. even more than 20%) would be qualified. For example people who bought homes low and sold high or otherwise make very profitable investements. I agree with CONCHO, if people like you can’t buy a 800K house with 10% down, who will?

I know quite a few here hammered on 20% down, like in the old days. I would agree with that, ONLY IF the prices were like in the old days, adjusted for inflation of course. If the banks are so stringent with the loans, then it should bring prices down in short order, because how many would qualify?!

NC4, I think you deserve a lot of congratulations on how well you managed to save that much money, and save for retirement and college too. Take pride in that. Good for you! Yes, you deserve a nice house with enough room for your family, if you managed your money so well. I think some people here are actually quite envious and they wish they were in your shoes at age 30. (I wish that too, BTW. We are older, and we’ll never be in your financial situation.). If you made such wise decisions so far, please re-think the buying a home now, it’s not a good idea. Don’t think with your heart, and your nesting instinct. Yes you could, and you deserve,etc., but this is not the right time. Patience! Nobody has to BUY anything. You can rent it. Try to think of alternatives out-of-the-box. Rent a larger house if you really need to for your increasing household, and try to sell or rent your current one. Or, put up with the inconvenience of your townhome and continue to save until you get your 20% down of your dream home. Perhaps you can re-route some of your retirement or college monthly savings toward downpayment for a couple years. Your savings will go up AND prices will go down. And it will happen rather soon, probably just in 1-2 years. And I bet the rates won’t increase much at all.

[Scarlett]

HLS, where R U?

NorthCounty4, since you say that you haven’t even gotten into the home details yet with the lenders, then perhaps it’s that the 90% LTV would be non-conforming (is that the right term?) loan. The key being >546K loan AND having <20% down.

In the bubble days, when I bought a house with less than 20% down, I got 2 loans, one for 80% of the sale price, and another one - a Home equity line of credit (HELOC) interest only for the (20%-DownPayment). Nowadays, for my price ranges there are no more interest only loans like that, since I asked. I qualified though to buy up to a 700K house with 5-10% down with FHA loan, which is not a good deal usually. (this was Chase) (and, no, I don't think we can afford 700K home, and we aren't buying yet).

If that is true, I agree with CONCHO, that means all the higher end houses are in trouble, because it may mean that only people with enough downpayment to bring the loan under 546K (i.e. even more than 20%) would be qualified. For example people who bought homes low and sold high or otherwise make very profitable investements. I agree with CONCHO, if people like you can’t buy a 800K house with 10% down, who will?

I know quite a few here hammered on 20% down, like in the old days. I would agree with that, ONLY IF the prices were like in the old days, adjusted for inflation of course. If the banks are so stringent with the loans, then it should bring prices down in short order, because how many would qualify?!

NC4, I think you deserve a lot of congratulations on how well you managed to save that much money, and save for retirement and college too. Take pride in that. Good for you! Yes, you deserve a nice house with enough room for your family, if you managed your money so well. I think some people here are actually quite envious and they wish they were in your shoes at age 30. (I wish that too, BTW. We are older, and we’ll never be in your financial situation.). If you made such wise decisions so far, please re-think the buying a home now, it’s not a good idea. Don’t think with your heart, and your nesting instinct. Yes you could, and you deserve,etc., but this is not the right time. Patience! Nobody has to BUY anything. You can rent it. Try to think of alternatives out-of-the-box. Rent a larger house if you really need to for your increasing household, and try to sell or rent your current one. Or, put up with the inconvenience of your townhome and continue to save until you get your 20% down of your dream home. Perhaps you can re-route some of your retirement or college monthly savings toward downpayment for a couple years. Your savings will go up AND prices will go down. And it will happen rather soon, probably just in 1-2 years. And I bet the rates won’t increase much at all.

[Scarlett]

HLS, where R U?

NorthCounty4, since you say that you haven’t even gotten into the home details yet with the lenders, then perhaps it’s that the 90% LTV would be non-conforming (is that the right term?) loan. The key being >546K loan AND having <20% down.

In the bubble days, when I bought a house with less than 20% down, I got 2 loans, one for 80% of the sale price, and another one - a Home equity line of credit (HELOC) interest only for the (20%-DownPayment). Nowadays, for my price ranges there are no more interest only loans like that, since I asked. I qualified though to buy up to a 700K house with 5-10% down with FHA loan, which is not a good deal usually. (this was Chase) (and, no, I don't think we can afford 700K home, and we aren't buying yet).

If that is true, I agree with CONCHO, that means all the higher end houses are in trouble, because it may mean that only people with enough downpayment to bring the loan under 546K (i.e. even more than 20%) would be qualified. For example people who bought homes low and sold high or otherwise make very profitable investements. I agree with CONCHO, if people like you can’t buy a 800K house with 10% down, who will?

I know quite a few here hammered on 20% down, like in the old days. I would agree with that, ONLY IF the prices were like in the old days, adjusted for inflation of course. If the banks are so stringent with the loans, then it should bring prices down in short order, because how many would qualify?!

NC4, I think you deserve a lot of congratulations on how well you managed to save that much money, and save for retirement and college too. Take pride in that. Good for you! Yes, you deserve a nice house with enough room for your family, if you managed your money so well. I think some people here are actually quite envious and they wish they were in your shoes at age 30. (I wish that too, BTW. We are older, and we’ll never be in your financial situation.). If you made such wise decisions so far, please re-think the buying a home now, it’s not a good idea. Don’t think with your heart, and your nesting instinct. Yes you could, and you deserve,etc., but this is not the right time. Patience! Nobody has to BUY anything. You can rent it. Try to think of alternatives out-of-the-box. Rent a larger house if you really need to for your increasing household, and try to sell or rent your current one. Or, put up with the inconvenience of your townhome and continue to save until you get your 20% down of your dream home. Perhaps you can re-route some of your retirement or college monthly savings toward downpayment for a couple years. Your savings will go up AND prices will go down. And it will happen rather soon, probably just in 1-2 years. And I bet the rates won’t increase much at all.

[Scarlett]

HLS, where R U?

NorthCounty4, since you say that you haven’t even gotten into the home details yet with the lenders, then perhaps it’s that the 90% LTV would be non-conforming (is that the right term?) loan. The key being >546K loan AND having <20% down.

In the bubble days, when I bought a house with less than 20% down, I got 2 loans, one for 80% of the sale price, and another one - a Home equity line of credit (HELOC) interest only for the (20%-DownPayment). Nowadays, for my price ranges there are no more interest only loans like that, since I asked. I qualified though to buy up to a 700K house with 5-10% down with FHA loan, which is not a good deal usually. (this was Chase) (and, no, I don't think we can afford 700K home, and we aren't buying yet).

If that is true, I agree with CONCHO, that means all the higher end houses are in trouble, because it may mean that only people with enough downpayment to bring the loan under 546K (i.e. even more than 20%) would be qualified. For example people who bought homes low and sold high or otherwise make very profitable investements. I agree with CONCHO, if people like you can’t buy a 800K house with 10% down, who will?

I know quite a few here hammered on 20% down, like in the old days. I would agree with that, ONLY IF the prices were like in the old days, adjusted for inflation of course. If the banks are so stringent with the loans, then it should bring prices down in short order, because how many would qualify?!

NC4, I think you deserve a lot of congratulations on how well you managed to save that much money, and save for retirement and college too. Take pride in that. Good for you! Yes, you deserve a nice house with enough room for your family, if you managed your money so well. I think some people here are actually quite envious and they wish they were in your shoes at age 30. (I wish that too, BTW. We are older, and we’ll never be in your financial situation.). If you made such wise decisions so far, please re-think the buying a home now, it’s not a good idea. Don’t think with your heart, and your nesting instinct. Yes you could, and you deserve,etc., but this is not the right time. Patience! Nobody has to BUY anything. You can rent it. Try to think of alternatives out-of-the-box. Rent a larger house if you really need to for your increasing household, and try to sell or rent your current one. Or, put up with the inconvenience of your townhome and continue to save until you get your 20% down of your dream home. Perhaps you can re-route some of your retirement or college monthly savings toward downpayment for a couple years. Your savings will go up AND prices will go down. And it will happen rather soon, probably just in 1-2 years. And I bet the rates won’t increase much at all.

[Scarlett]

HLS, where R U?

NorthCounty4, since you say that you haven’t even gotten into the home details yet with the lenders, then perhaps it’s that the 90% LTV would be non-conforming (is that the right term?) loan. The key being >546K loan AND having <20% down.

In the bubble days, when I bought a house with less than 20% down, I got 2 loans, one for 80% of the sale price, and another one - a Home equity line of credit (HELOC) interest only for the (20%-DownPayment). Nowadays, for my price ranges there are no more interest only loans like that, since I asked. I qualified though to buy up to a 700K house with 5-10% down with FHA loan, which is not a good deal usually. (this was Chase) (and, no, I don't think we can afford 700K home, and we aren't buying yet).

If that is true, I agree with CONCHO, that means all the higher end houses are in trouble, because it may mean that only people with enough downpayment to bring the loan under 546K (i.e. even more than 20%) would be qualified. For example people who bought homes low and sold high or otherwise make very profitable investements. I agree with CONCHO, if people like you can’t buy a 800K house with 10% down, who will?

I know quite a few here hammered on 20% down, like in the old days. I would agree with that, ONLY IF the prices were like in the old days, adjusted for inflation of course. If the banks are so stringent with the loans, then it should bring prices down in short order, because how many would qualify?!

NC4, I think you deserve a lot of congratulations on how well you managed to save that much money, and save for retirement and college too. Take pride in that. Good for you! Yes, you deserve a nice house with enough room for your family, if you managed your money so well. I think some people here are actually quite envious and they wish they were in your shoes at age 30. (I wish that too, BTW. We are older, and we’ll never be in your financial situation.). If you made such wise decisions so far, please re-think the buying a home now, it’s not a good idea. Don’t think with your heart, and your nesting instinct. Yes you could, and you deserve,etc., but this is not the right time. Patience! Nobody has to BUY anything. You can rent it. Try to think of alternatives out-of-the-box. Rent a larger house if you really need to for your increasing household, and try to sell or rent your current one. Or, put up with the inconvenience of your townhome and continue to save until you get your 20% down of your dream home. Perhaps you can re-route some of your retirement or college monthly savings toward downpayment for a couple years. Your savings will go up AND prices will go down. And it will happen rather soon, probably just in 1-2 years. And I bet the rates won’t increase much at all.

[Arraya]

You need to sit back watch the prices plummet. Seriously, any tax advantages will pale in comparison to the price declines. That is about as certain as it can get. Don’t let your emotions or a realtor fool you!

As you’re sitting back and enjoying what a good decision you made by waiting, you can calculate how much more home you can buy with each passing month and while you are at it, pray to god the financial institutions don’t completely destroy the country.

Cheers

PR-You nailed it!

[Arraya]

You need to sit back watch the prices plummet. Seriously, any tax advantages will pale in comparison to the price declines. That is about as certain as it can get. Don’t let your emotions or a realtor fool you!

As you’re sitting back and enjoying what a good decision you made by waiting, you can calculate how much more home you can buy with each passing month and while you are at it, pray to god the financial institutions don’t completely destroy the country.

Cheers

PR-You nailed it!

[Arraya]

You need to sit back watch the prices plummet. Seriously, any tax advantages will pale in comparison to the price declines. That is about as certain as it can get. Don’t let your emotions or a realtor fool you!

As you’re sitting back and enjoying what a good decision you made by waiting, you can calculate how much more home you can buy with each passing month and while you are at it, pray to god the financial institutions don’t completely destroy the country.

Cheers

PR-You nailed it!

[Arraya]

You need to sit back watch the prices plummet. Seriously, any tax advantages will pale in comparison to the price declines. That is about as certain as it can get. Don’t let your emotions or a realtor fool you!

As you’re sitting back and enjoying what a good decision you made by waiting, you can calculate how much more home you can buy with each passing month and while you are at it, pray to god the financial institutions don’t completely destroy the country.

Cheers

PR-You nailed it!

[Author]

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