Profile picture for Jayman770

Could this be bait and switch?

I was preapproved for a mortgage at my local credit union four months ago.  I went in the other day and now they tell me they need 10% down without any other options.  I talked to my mortgage broker and he has never heard of such a thing.  They didnt even offer me an FHA loan at 3.5% or 5% down that I found out about.  My credit score is 790, anyone have any idea what happened, I though the credit market was starting to unfreeze, maybe not.
  • April 05 2009 - Saint Louis
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Answers (10)

local badge  mmmkay
  • October 20 2010
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Honestly I think you should return to Zillow in another year and a half to see if you made the right decision.

Frankly I think Monique had the best answer. I am going to give her a 'thumbs up' Or maybe just a 't'.

Chances are another five hundred agents will have answered in that time frame and you might be glad you waited.

And for your effort another angel will get their wings and another agent will get their coveted local badge.
  • October 20 2010
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Profile picture for MoniqueU

1

  • October 20 2010
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Profile picture for wetdawgs
@Christine:  Welcome to Zillow.

May I recommend two things:
a. Read the date on the original post.
b. Read the comments in the thread before posting.
You will add far more value to the board if you do both of these.
  • October 20 2010
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Shop around.  Give the credit union, and other lenders some competition.  You'll get better rates and service.
  • October 20 2010
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I am guessing jayman770 solved his problem 18 months ago but a note on Credit Unions, many do not offer FHA and many of the ones that do used to go through Crescent Bank for access.   
  • October 20 2010
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Sounds like your credit union was either uneducated as to what mortgage loan products were available to you in their own portfolio or not forthright in telling you upfront that their mortgage loan products were likely not best suited for your particular scenario.

Your best bet is a 96.5% LTV FHA mortgage with seller-paid closing costs to minimize your out-of-pocket expenses at closing.
  • October 20 2010
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Profile picture for stephhug
You best answer is to speak with another lender and see what kind of program they can offer you. If you are qualified to do an FHA loan with someone else, go for it! I can help you get in contact with a reputable lender in St. Louis if you need a referral.

The lending laws are constantly changing and until you have an accepted contract on a home, you can't "lock-in" you rate and program.
  • April 06 2009
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If your mortgage broker has never heard of such a thing, I would find another mortgage broker. The drop to 90% LTV is either a designation of declining values or their inability to get MI at 95%, or both. You may still find a conventional loan at 95% with another lender or switch to FHA.
  • April 06 2009
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Your credit union probably does not offer FHA loans.  And, a lot can happen in four months, so I would say your credit union is not baiting and switching.  Maybe their guidelines have changed and become more restrictive.

Mortgages are still readily available, but guidelines continue to contract.
  • April 05 2009
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