Mortgage Specialists - Need Help

[SoCal4Run]

So my wife and I have run into somewhat a wall, and are trying to make the best decision for the future of our family. We recently received a 60 day notice to move out of our rental that we have been in for almost 5 years now. Supposedly the owners need to move back in. Shitty timing considering that my wife is almost now 7 months pregnant. Also, we most likely need to switch schools for my girls since all the rentals around us in the same area are $400-$600 more per month and/or not practical for our family.

My wife and I have been saving hard for down payment to buy, but have hit a snag. Long story short, we had a short sale 3 years ago (exactly). Given this fact, I guess we don't qualify for a traditional loan, but would be eligible for a FHA loan. The kicker with this is the loan limit with the FHA due to different counties.

In Orange County, the limit is $650k, which is fine since all the homes are that much anyway, but we just can't afford the homes in Orange County on my single income in the areas we are looking (schools being most important for my girls). So we were looking at buying back out in Chino/Chino Hills where we lived before, but the problem is the FHA limit is $356,500. This is really handcuffing us. We have roughly $75k to put down, so adding that to limit gets us to about $431,500. But the homes we were hoping to buy are in the $480-$500 range. This is not an issue for mortgage payment, but just a matter of qualifying for the loan due to the limitation.

Is there any way possible to get around this limitation? What options do I have? Obviously, we were hoping to rent at our current home one more year, save a little more, and buy in a year when we are eligible for a traditional loan. But having to move is forcing our hand, and obviously we would rather buy rather than moving into a rental for a year, then buying and having to move again.

Any help/insight is appreciated. I know there's a lot of smart savvy guys in here, so I'm hoping something can come out of this. Thanks and sorry for the long verbiage.

 

[Bigshankhank]

Wish I could help, but we are in almost the exact same situation as you, completed a short sale three and a half years ago, and now are having to leave our current rental in October but needing about another year to put together what we want to have for a down payment. So we will move to a new rental, half unpack then move again in another year. Sucks but hey, thank your local bank for continuously reminding us that the financial collapse of 08-09 didn't just stop affecting our lives once it was "over".
Good luck to you.

 

[ts motorsport]

Why are you applying for a single loan. The mortgage industry stopped giving out 80/20 loans but from my understanding they are back. You should check with your loan advisor. This will resolve your issue.

 

[Thefishguy77]

Wish I could help, but we are in almost the exact same situation as you, completed a short sale three and a half years ago, and now are having to leave our current rental in October but needing about another year to put together what we want to have for a down payment. So we will move to a new rental, half unpack then move again in another year. Sucks but hey, thank your local bank for continuously reminding us that the financial collapse of 08-09 didn't just stop affecting our lives once it was "over".

Good luck to you.

It sucks and it was the banks. But it was also Clinton deregulating the mortgage industry and stupid effin people thinking they could afford a 1,000,000 home on 30,000 a year. Just because the bank said they would give you a loan doesn't mean you could afford it. Everybody blames the banks alone. But if they didn't take those loans we wouldn't be here to start with. 3-5 year fixed arm loan with a 20% interest rate increase in the 2nd arm. Really did you even read the paper work?
Climbing off soapbox.



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[Sleeter]

Good luck, take your time and don't put yourself in another bad position. Ask your realtor who the best mortgage person they know know and go from there. If your realtor doesn't give you a straight answers get a new realtor.

 

[CXS]

It sucks and it was the banks. But it was also Clinton deregulating the mortgage industry....

It was an agreement between the Clinton administration and congressional Republicans. Enough politics.

My sincere sympathy for having to deal with the current prices which are absurd where you live. I think you'd be best continue saving whatever you can and rent until that down payment larger. Best luck, don't get discouraged and you'll get the house you want rather than one you'll settle for.

 

[KamrisMors]

I strongly advise, in this case, to seek professional help from a mortgage or financial advisor. You don't need to make any choices that will come and bite you right in the ass. If you are ready to make such risky decisions, you might as well take some of that money and spend it on professional advice. This way, you are surely going to dodge more than one bullet there. Believe me, been there, done that. Made some quite silly decisions, and they totally backfired. Since then, I made sure to take my ideas or plans to the professionals, in this case, straight to Mortgage Advice York, and they totally helped me with my mortgage, finances, and all. And by the way, you should consider "buying off" someone else's mortgage. This way, you just take over what they have to pay monthly/yearly, you don't have a loan limitation, you don't "smudge" your credit score, you don't need to come with a down payment, the list keeps going on.

 

[Oldmanb777]

Bit of an old thread. But people will be people, and they are making some of the same mistakes all over again.

 

[John in NC]

Talk to a local, competent, mortgage broker, not a mortgage banker. So not at your bank, not Lendingtree online, not Bank of America etc.- a local broker who can look at your situation and shop around for you. The caveat is if you belong to a credit union they're worth a shot as well.