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.August 05 2012 - Staten Island0YesReport 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.