Bank won't finalize mortgageWorking with a direct lender and using FHA financing. Getting to the final stages of approval however the lender recently stated that no banks are willing to purchase the mortgage due to the LTV on our other house, which we are currently leasing out and have a 24 month lease signed (temporarily living with inlaws during purchase process). Banks are afraid of a buy and bail due to being upside down on the other house. Our credit scores are mid 700's, we have enough income to easily meet the debt to income requirements, and have full intention of continuing both mortgages and using the first one as an investment property for many years to come. Lender is reaching out to brokers rather than banks and stated they see no issues with getting things finalized with this approach, just a couple more days and a few more signatures as we move. Has anyone else ran into this situation? Any guidance, input, or reassurance you can provide would be great. February 27 2013 - Woodbury00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.