Golden Mean
Recycles dryer sheets
- Joined
- Feb 20, 2009
- Messages
- 210
Just a short story about our very short search for a condo.
I got to thinking about moving to these kinda townhouse like condos a couple miles from our house. Among other things, our current house has a barking dog problem and a lack of sidewalks nearby. These condos have no yards (no yard work, no outside doggies) and are near a bunch of places we can walk.
I'm thinking; bump up the HELOC on our current house, use it for a down pahyment, do a 3% 5/5 from PenFed, move, paint and stage our current house for sale, sell current house (eventually). Do some Googling and using HELOC for down payment appeared to be somewhat typical. I can handle two (3?) mortgages if need be. Cool.
So, we go to look at a unit in the $160k region. Seems nice, well isolated on the one wall you share with neighbors. Good stuff. Realtor mentions condos aren't eligible for FHA. I'm thinking, no problem I plan to put 20% down with PenFed anyhow.
So next morning call up Schwab to bump up the HELOC. Hmmm... seems the rules have changed and/or they really don't want to do HELOCs anymore. Can only do a minimum $50K and they'll only go 75% LTV. Pfft so I'd have to have a heck a lot of equity in this house to do that. I'm thinking I have about 50K equity. Decide to go ahead with the process anyhow. No cost other than the credit score hit on the pull.
Next, check the details on the PenFed 5/5. What's this? A special condo item in the FAQ? Condo loans will only go 70% LTV. Great so now I have to come up with like 50K instead of approx. 35K.
Call the realtor and tell them financing isn't as cut and dry as I figured, don't need to waste their time looking at more units until financing is more secure.
Last straw was the call with Schwab today. I made it past the preapproval (no surprise, good credit, good job, etc) but things come to a halt when they need me sign an affidavit saying I won't move from current place within the next year. At that point I said for them to just drop it, I can't use the money for a down payment if I can't move.
So, no condo for us until/unless we sell this house or maybe our place in Missouri.
Oh well, no biggie. Dog isn't that loud.
I got to thinking about moving to these kinda townhouse like condos a couple miles from our house. Among other things, our current house has a barking dog problem and a lack of sidewalks nearby. These condos have no yards (no yard work, no outside doggies) and are near a bunch of places we can walk.
I'm thinking; bump up the HELOC on our current house, use it for a down pahyment, do a 3% 5/5 from PenFed, move, paint and stage our current house for sale, sell current house (eventually). Do some Googling and using HELOC for down payment appeared to be somewhat typical. I can handle two (3?) mortgages if need be. Cool.
So, we go to look at a unit in the $160k region. Seems nice, well isolated on the one wall you share with neighbors. Good stuff. Realtor mentions condos aren't eligible for FHA. I'm thinking, no problem I plan to put 20% down with PenFed anyhow.
So next morning call up Schwab to bump up the HELOC. Hmmm... seems the rules have changed and/or they really don't want to do HELOCs anymore. Can only do a minimum $50K and they'll only go 75% LTV. Pfft so I'd have to have a heck a lot of equity in this house to do that. I'm thinking I have about 50K equity. Decide to go ahead with the process anyhow. No cost other than the credit score hit on the pull.
Next, check the details on the PenFed 5/5. What's this? A special condo item in the FAQ? Condo loans will only go 70% LTV. Great so now I have to come up with like 50K instead of approx. 35K.
Call the realtor and tell them financing isn't as cut and dry as I figured, don't need to waste their time looking at more units until financing is more secure.
Last straw was the call with Schwab today. I made it past the preapproval (no surprise, good credit, good job, etc) but things come to a halt when they need me sign an affidavit saying I won't move from current place within the next year. At that point I said for them to just drop it, I can't use the money for a down payment if I can't move.
So, no condo for us until/unless we sell this house or maybe our place in Missouri.
Oh well, no biggie. Dog isn't that loud.