Close

See current mortgage rates on Zillow Mortgage Marketplace

Profile picture for user318332

What banks will lend on a purchase when there is an upside down overlay on my current property?

I am in escrow, trying to purchase a new larger home. I am upside down on my current home. My middle FICO is 804, my husbands is 698, our DTI qualifies us for both homes, we also qualify for an FHA. The lenders my broker has submitted to will not allow the upside down overlay. We owe $600,000 and current home value is $300,000. Our new home is $519,000. Do you know lenders who will allow this? I am in northen California.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 05 2012 - Staten Island
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (6)

Profile picture for user318332
Sonoma County, California.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 06 2012
Profile picture for Go Huskers
You still have not said what county this is yet. I am asking because if you are in a county where the FHA limit is high enough, this will be very easy to do. The limit is no necessarily $417,000. FHA will allow this and all you need is a lender that can do an FHA mortgage. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 05 2012
Profile picture for user318332
Our purchase price is $519,000 and we are putting $20,000 down. Part of the reason our down is so samll is so that we will have reserves covering 6 months of mortgage payments on both properties. So we have the income/DTI, we have the reserves, and we have the FICO. We are just majorly upside down and even though we've never had a 30 day late, the bank is assuming that we are going to bail. Not sure what to do. Just wondered if anyone out there was aware of a bank that is OK with this scenrio??? We've got until August 16th to get a bank approval.  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 05 2012
Profile picture for Go Huskers
Well all true jumbo loans are portfolio loans so they don't follow conforming guidelines. What is your new loan amount and what county are you purchasing in?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 05 2012
Profile picture for user318332
We have submitted a letter of expalnation. So far 4 banks have said no. My broker said it's because we are applying for a Jumbe loan. If we found a house for $417,000 or less the banks would not balk.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 05 2012
Profile picture for Go Huskers
If you can afford both properties and your DTI is acceptable, the fact that you are upside down should not be an issue. At most you should only need a letter of explanation as to why you are purchasing the new property. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 05 2012
 
Related Questions
VA Lenders state they will not give a mortgage for a house with more than 10 acres YET VA says it is
Profile picture for Brandon Brown
Latest answer by Brandon Brown
4 days ago | 2 answers
What types of mortages should I look at?
Profile picture for Steven Bueti
Latest answer by Steven Bueti
May 20 | 4 answers
can i buy a house with a credit score of under 600
Profile picture for Brian Nguyen
Latest answer by Brian Nguyen
December 23 2013 | 2 answers
  • Asked by user6479853
  • In Mortgage
  • December 21 2013
we are considering refinancing with new american funding...
Profile picture for silvazx3
Latest answer by silvazx3
December 18 2013 | 7 answers
will having a side business hurt me when applying for a mortgage?
Profile picture for user8192154
Latest answer by user8192154
September 20 2013 | 5 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 92 Lowell St, Carteret, NJ Home For Sale
    92 Lowell St, Carteret, NJ 07008

     For Sale: $219,900

    • Beds: 3
    • Sqft: 1343
    • Baths: 1.0
    • Lot: 3698
  2. 0 Dolson Pl # 1280, Staten Island, NY Home For Sale
    0 Dolson Pl # 1280, Staten Island, NY 10303

     For Sale: $549,000

    • Beds: 0
    • Sqft: 51800
    • Baths: --
    • Lot: --
  3. 161 Wellbrook Ave, Staten Island, NY Home For Sale
    161 Wellbrook Ave, Staten Island, NY 10314

     For Sale: $359,000

    • Beds: 3
    • Sqft: 1200
    • Baths: 2.0
    • Lot: 4000