(Closed) Stupid 2/28 regulation is going to cost us our house

posted 8 years ago in Home
Post # 3
Member
10218 posts
Sugar Beekeeper
  • Wedding: November 2010

((HUGS)) I have  a strange question, can he add you to any of his lines of credit and that way you can pick up the history which would sort of fake the system or can your parents?

Post # 4
Member
546 posts
Busy bee
  • Wedding: June 2010

Can the house just be in your FI’s name?  Since he has the three lines? 

I know that may not be for everyone…but when we bought our house it could only be in my FI’s name because my job is technically on a contract, even though I am full time and everything.  That could be an option if you are in a hurry to buy it and don’t want to wait the six months.

It sucks that you are being punished for being responsible, but it’s stuff like that always made me have a few credit cards just in case…even though they didn’t have a balance.

Post # 5
Member
1135 posts
Bumble bee
  • Wedding: April 2009

I’m so SO sorry you’re dealing with this. I don’t have a lot of advice for you because we bought our place almost a year ago, and this regulation wasn’t in place, so I don’t know how to deal with it.  But I think you’re right, since the financial collapse, banks are lending to almost no one–they’ve done a complete 180 from their lending 3 years ago, and they’re punishing people who would be excellent homeowners and mortgage holders.  It took us FOREVER to get approved because my Fiance is earning his salary through an MD/PhD program, so he’s paid a stipend by the NIH (National Institute of Health), not a standard “salary” by a company.  He makes the same as what he made when he was earning a salary, but because it’s called a stipend we almost didn’t get our mortgage.  They kept telling us it wasn’t considered income (to which I said, “great! would you mind letting the IRS know, because it would be lovely if they didn’t ask us to pay taxes on it!”  They didn’t go for it.)  Eventually we worked it out, but I think it took YEARS off my life.  So I’m so so sorry that you’re going through this right now, and I do feel your pain.  Is there a second opinion that you can get?  Just to make sure that you’re getting the right information?  Because I found that sometimes the people we dealth with just didn’t have any idea what they were talking about.  Good luck!

Post # 7
Member
11325 posts
Sugar Beekeeper
  • Wedding: February 2011

Buy under FHA (no PMI when you put more than 22% down), open up a new line of credit, and refinance in 1 year for a conventional loan. Yes you’ll probably have some fees… but not enough to eat up the 8k tax credit and lower interest rate. 

 

Note: When you go fha they charge you a fee that is a % of the house. Ours was like 3,500. BUT if you refinance within 3 years you get most of that back. Talk to your realtor about this– for real. 

Post # 8
Member
392 posts
Helper bee
  • Wedding: June 2011

I’m with Miss Britt, my Fiance and I purchased our home in July 2008 so I can’t really help you but because the Fiance is 5 years older than me and had plenty of credit our mortgage is only in his name.  It worked well for us this time and its something you may want to consider esspeicially with all that you have to put down.

Also PMI insurance drops off automatically when you have 20% equity in your home so with such a large down payment you should never have to pay it.

Post # 9
Member
3788 posts
Honey bee
  • Wedding: July 2011

Oh, man, I can only imagine how shocked and disappointed you must be. I hope that it works out for you, or maybe this is a sign that there is something better waiting for you? Good luck!

Post # 10
Member
354 posts
Helper bee
  • Wedding: October 2009

No bueno ๐Ÿ™  I’m so sorry. This is just crummy. My thoughts, prayers and hugs go out to you.

Post # 11
Member
3762 posts
Honey bee
  • Wedding: May 2010

I think Corgi has a good point.  Just apply with the FHA loan and refinance when needed.  Talk to the realtor or mortgage lender to discuss the details of this.

I dont think this is God telling you to walk away.  Buying a house is hard.  If everyone walked away when issues like this came up, I doubt anyone would be in a house! 

It is very stupid you are being punished for not having enough history.  I have had 2 credit cards open for a while (over 2 years) and they still identified them as “new” accounts.

Post # 12
Member
5977 posts
Bee Keeper

Go with the FHA. We put 20% down on our house, but went with the FHA loan b/c in the long run, it saved us more money than a conventional loan. You don’t have PMI with an FHA, it’s insured by the government rather than a private mortgage company. There’s absolutely nothing wrong with an FHA, and as soon as you own 20% of the appraised value of your home, the insurance falls off. Since you’re putting down way more than that, you’ll be set.

Again…nothing wrong with an FHA, and in the long run, it could save you money over a conventional loan.

Post # 13
Member
3709 posts
Sugar bee
  • Wedding: May 2011

I am with Corgi on this one…For FHA loans, if you put 20% or more down, you don’t have to pay PMI. Also, this will get you in the home you want and you can refinance at a later date.

Post # 14
Member
5823 posts
Bee Keeper

I’m so sorry, I know how excited you’ve been!  I hope that you can find something that will work for you and your FI!

Post # 15
Hostess
18643 posts
Honey Beekeeper
  • Wedding: June 2009

I’m sorry about this.  I would go with the FHA loan.  You don’t have to pay PMI if you own more than 20% of the home.

Post # 16
Member
5263 posts
Bee Keeper
  • Wedding: June 2012

That’s ridiculous… I’m sorry. ๐Ÿ™ Sounds like Corgi has good advice, though. 

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