Why can I not get a loan?

[CA renter]

sdnerd:

Here is snipped from an article about the anti “buy and bail” requirement. It mentions that Freddie Mac requires the 30% equity, but I’ve heard other lenders are also requiring it.

Under the new Fannie Mae guidelines, in most cases, a borrower now must have at least 30 percent equity in his house to buy another. Otherwise, he cannot use the rent he says he will get to prove he can support two homes. The deterrence is that no one would want to walk away from a house in which he had a large amount of equity.

Also, the rental income the borrower claims now must be fully documented.

http://www.pe.com/business/local/stories/PE_News_Local_S_cheaters31.45b183a.html

[PKMAN]

[quote=ncounty4]My husband and I have great credit (800) and great income ($250+). We want to buy a home in $700-800k range, putting 10% down. We understand that we would need to either pay PMI or get a 2nd with this arrangement. However, no one will loan us the money. Apparently a jumbo 90% loan product no longer exists?? How can young couples that are great credit risks buy property these days??? I find it hard to believe that everyone else our age has 20%+ to put down on good homes. Please advise. [/quote]

Yes – 90% jumbo loans just don’t exist anymore…even if you make $500K+ it would be very very hard. Banks will automatically assume that the value of your property (especially in North County) will depreciate by 20% or more before it creeps back up. Thus lending you 90% just doesn’t make sense right now.

Young couples with great credit scores can buy property with more down payment…at least 20%.

You can if you save at least 30% of your combined monthly take home for just a few years and you’d get your 20%+ down payment. We did (and our salaries are nowhere close to yours), why couldn’t you? Now we’re buying a home with at least 40% down and get the absolutely lowest possible rate, while you’re wondering why no one will lend you the money. It doesn’t take an Einstein to figure out your problems.

[PKMAN]

[quote=ncounty4]My husband and I have great credit (800) and great income ($250+). We want to buy a home in $700-800k range, putting 10% down. We understand that we would need to either pay PMI or get a 2nd with this arrangement. However, no one will loan us the money. Apparently a jumbo 90% loan product no longer exists?? How can young couples that are great credit risks buy property these days??? I find it hard to believe that everyone else our age has 20%+ to put down on good homes. Please advise. [/quote]

Yes – 90% jumbo loans just don’t exist anymore…even if you make $500K+ it would be very very hard. Banks will automatically assume that the value of your property (especially in North County) will depreciate by 20% or more before it creeps back up. Thus lending you 90% just doesn’t make sense right now.

Young couples with great credit scores can buy property with more down payment…at least 20%.

You can if you save at least 30% of your combined monthly take home for just a few years and you’d get your 20%+ down payment. We did (and our salaries are nowhere close to yours), why couldn’t you? Now we’re buying a home with at least 40% down and get the absolutely lowest possible rate, while you’re wondering why no one will lend you the money. It doesn’t take an Einstein to figure out your problems.

[PKMAN]

[quote=ncounty4]My husband and I have great credit (800) and great income ($250+). We want to buy a home in $700-800k range, putting 10% down. We understand that we would need to either pay PMI or get a 2nd with this arrangement. However, no one will loan us the money. Apparently a jumbo 90% loan product no longer exists?? How can young couples that are great credit risks buy property these days??? I find it hard to believe that everyone else our age has 20%+ to put down on good homes. Please advise. [/quote]

Yes – 90% jumbo loans just don’t exist anymore…even if you make $500K+ it would be very very hard. Banks will automatically assume that the value of your property (especially in North County) will depreciate by 20% or more before it creeps back up. Thus lending you 90% just doesn’t make sense right now.

Young couples with great credit scores can buy property with more down payment…at least 20%.

You can if you save at least 30% of your combined monthly take home for just a few years and you’d get your 20%+ down payment. We did (and our salaries are nowhere close to yours), why couldn’t you? Now we’re buying a home with at least 40% down and get the absolutely lowest possible rate, while you’re wondering why no one will lend you the money. It doesn’t take an Einstein to figure out your problems.

[PKMAN]

[quote=ncounty4]My husband and I have great credit (800) and great income ($250+). We want to buy a home in $700-800k range, putting 10% down. We understand that we would need to either pay PMI or get a 2nd with this arrangement. However, no one will loan us the money. Apparently a jumbo 90% loan product no longer exists?? How can young couples that are great credit risks buy property these days??? I find it hard to believe that everyone else our age has 20%+ to put down on good homes. Please advise. [/quote]

Yes – 90% jumbo loans just don’t exist anymore…even if you make $500K+ it would be very very hard. Banks will automatically assume that the value of your property (especially in North County) will depreciate by 20% or more before it creeps back up. Thus lending you 90% just doesn’t make sense right now.

Young couples with great credit scores can buy property with more down payment…at least 20%.

You can if you save at least 30% of your combined monthly take home for just a few years and you’d get your 20%+ down payment. We did (and our salaries are nowhere close to yours), why couldn’t you? Now we’re buying a home with at least 40% down and get the absolutely lowest possible rate, while you’re wondering why no one will lend you the money. It doesn’t take an Einstein to figure out your problems.

[PKMAN]

[quote=ncounty4]My husband and I have great credit (800) and great income ($250+). We want to buy a home in $700-800k range, putting 10% down. We understand that we would need to either pay PMI or get a 2nd with this arrangement. However, no one will loan us the money. Apparently a jumbo 90% loan product no longer exists?? How can young couples that are great credit risks buy property these days??? I find it hard to believe that everyone else our age has 20%+ to put down on good homes. Please advise. [/quote]

Yes – 90% jumbo loans just don’t exist anymore…even if you make $500K+ it would be very very hard. Banks will automatically assume that the value of your property (especially in North County) will depreciate by 20% or more before it creeps back up. Thus lending you 90% just doesn’t make sense right now.

Young couples with great credit scores can buy property with more down payment…at least 20%.

You can if you save at least 30% of your combined monthly take home for just a few years and you’d get your 20%+ down payment. We did (and our salaries are nowhere close to yours), why couldn’t you? Now we’re buying a home with at least 40% down and get the absolutely lowest possible rate, while you’re wondering why no one will lend you the money. It doesn’t take an Einstein to figure out your problems.

[urbanrealtor]

Since HLS has not chimed in, I will parrot what my favorite loan officers are saying.

Basically, they are saying for 81+% ltv’s with those larger prices are often good candidates for FHA.

FHA’s are not always good for everybody.

However, they can be the most cost effective in certain situations.

I would like to hear what HLS has to say on this.

[urbanrealtor]

Since HLS has not chimed in, I will parrot what my favorite loan officers are saying.

Basically, they are saying for 81+% ltv’s with those larger prices are often good candidates for FHA.

FHA’s are not always good for everybody.

However, they can be the most cost effective in certain situations.

I would like to hear what HLS has to say on this.

[urbanrealtor]

Since HLS has not chimed in, I will parrot what my favorite loan officers are saying.

Basically, they are saying for 81+% ltv’s with those larger prices are often good candidates for FHA.

FHA’s are not always good for everybody.

However, they can be the most cost effective in certain situations.

I would like to hear what HLS has to say on this.

[urbanrealtor]

Since HLS has not chimed in, I will parrot what my favorite loan officers are saying.

Basically, they are saying for 81+% ltv’s with those larger prices are often good candidates for FHA.

FHA’s are not always good for everybody.

However, they can be the most cost effective in certain situations.

I would like to hear what HLS has to say on this.

[urbanrealtor]

Since HLS has not chimed in, I will parrot what my favorite loan officers are saying.

Basically, they are saying for 81+% ltv’s with those larger prices are often good candidates for FHA.

FHA’s are not always good for everybody.

However, they can be the most cost effective in certain situations.

I would like to hear what HLS has to say on this.

[paramount]

From the OP: What makes a home bad?

Also, in this current economy generally no one is a good credit risk, much less a great one.

[paramount]

From the OP: What makes a home bad?

Also, in this current economy generally no one is a good credit risk, much less a great one.

[paramount]

From the OP: What makes a home bad?

Also, in this current economy generally no one is a good credit risk, much less a great one.

[paramount]

From the OP: What makes a home bad?

Also, in this current economy generally no one is a good credit risk, much less a great one.

[Author]

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