Posted on: 07th Jun, 2010 04:40 pm
Our closing appraisal came in showing a declining market thus the underwriter requires an additiomal 5% down payment - from 3% to 8%. Could the buyer get a cash advance on his $8,000 tax credit for the additional money needed.
Hi judycaffee!
Welcome to forums!
The tax credit will be given to the home buyer after he or she has purchased the property. Thus, the buyer will not be able to get a cash advance from the first time buyer's tax credit for the additional amount of money needed.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The tax credit will be given to the home buyer after he or she has purchased the property. Thus, the buyer will not be able to get a cash advance from the first time buyer's tax credit for the additional amount of money needed.
Feel free to ask if you've further queries.
Sussane
Hi Judycaffe,
What type of loan are you doing, conventional, FHA or?
I have never seen a lender require a higher down payment on an FHA loan due to declining markets so if you're trying FHA you'll probably need to change lenders. If you're doing a conventional loan you should look at switching loan programs.
What type of loan are you doing, conventional, FHA or?
I have never seen a lender require a higher down payment on an FHA loan due to declining markets so if you're trying FHA you'll probably need to change lenders. If you're doing a conventional loan you should look at switching loan programs.
There are FHA lenders who require additional 5% down in declining markets.
Getting an advance on the tax credit could be a little tricky right now since anyone giving the credit wants to be paid back and you must close by June 30 to get the credit to pay them back. Anyone who would give the advance may be leeery of your closing in time or at all.
Per the advice above, whether FHA or conventional. find lender who is ok with 5% down. Most lenders are ok with conventional as long as you can get PMI and PMI has loosened up so it is available with certain lenders (not all). What state is the property in? Some states are tougher--CA NV MI AR FL. The rest are ok with PMI with 5% down for conventional, but, once again, not all lenders have access to the MI
Getting an advance on the tax credit could be a little tricky right now since anyone giving the credit wants to be paid back and you must close by June 30 to get the credit to pay them back. Anyone who would give the advance may be leeery of your closing in time or at all.
Per the advice above, whether FHA or conventional. find lender who is ok with 5% down. Most lenders are ok with conventional as long as you can get PMI and PMI has loosened up so it is available with certain lenders (not all). What state is the property in? Some states are tougher--CA NV MI AR FL. The rest are ok with PMI with 5% down for conventional, but, once again, not all lenders have access to the MI
