Home Buying in 19107>Question Details

PhillyBuyer, Home Buyer in Brighton, MA

Mortgage Contingency when lender wants more than 80% LTV

Asked by PhillyBuyer, Brighton, MA Wed Jul 31, 2013

Have a signed purchase agreement, with mortgage contingency, to buy a Condo in Philadelphia, PA. I'm already putting a lot down, now the bank wants 75% LTV, which I have, but I'm really not comfortable putting down because it would leave my cash cushion lower than I want. Am I within my legal rights to walk away because the bank wants extra money to issue a loan?

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If you applied for a 20% down loan and they cannot approve you for it then you should be able to get a denial.

Your purchase contract will spell out your rights in the event that you cannot obtain mortgage approval.

This is something you should discuss with your agent, who should be able to direct you in this matter and provide better advice. After all, your agent is more well versed in the details of your particular transaction.

Good luck!
0 votes Thank Flag Link Thu Aug 1, 2013
Tony,

Truly appreciate the reply. Yes, the sales contract clearly states the loan amount in the Mortgage contingency, and now they're looking for another 40K beyond that. It looks like I'm well within my rights to walk.
Flag Thu Aug 1, 2013
Hay Philly Buyer as you can see the two Mortgage Brokers that responded are correct in the fact that the only person that can give you an answer to your question is your agent due to the fact that he has a copy of the contract and pre approval letter which was submitted with the offer I don't know any of the facts but you need to deal with this ASAP due to Time of the Essence which is Para 5 and the Mortgage Contingency Para 8 PLEASE contact your AGENT ASAP

Philip J. Cunningham Sr.
V.I.P. Realty Corporation
7942 Bustleton Ave
Philadelphia, PA 19152
215-725-5700X49 cell 267-934-1971
philcunningham2004@yahoo.com
Web Reference: http://www.GreatPaRE.com
0 votes Thank Flag Link Thu Aug 1, 2013
Well ultimately the bank might be able to dencline your loan for insufficient assets. But if you're showing enough money where you can swing a 25% down payment, you might not get a denial letter, which is what you need in order to walk from the transaction.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Thu Aug 1, 2013
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