You have received good advice here. Go talk to some loan officers in person to see what they can offer. If you persist, you will find someone that will help you. Get preapproved before you ever look at homes. Talk to fiends/coworkers to find lenders via referral.
Best of luck,
Mark & Kari Shea
Shea Real Estate
Serving Greater San Diego
Mortgage Planner & RE Consultant
The GreenHouse Group
591 Camino de la Reina Ste. 103
San Diego, CA 92108
DRE Lic. #01391065 / NMLS #322637
In this case what the underwriter would be concerned with is your occupancy. Rental properties are considered more "risky" than owner occupied properties, because they figure that a rental property would be let go before an owner occupied property in the case of a financial hardship.
In lending, "risk" equals slightly higher rates.
So, as you will understand, there are a lot of people that try to buy rental properties with owner occupied loans.
So, in your case, the concern would be that somehow you are buying a rental property, but trying to get owner occupied rates. Thats not a personal attack on you, that is a very general guideline issue that applies to everyone.
So, to solve your problem, I would have you write a detailed letter of explanation explaining WHY you were interested in living in that particular location, and what the plan is with the commuting, job situation, etc. I have done a TON of these like this. Its really not common for people to live in Temecula and commute to downtown San Diego, or even the border! Similarly, it is not uncommon for someone to live in San Diego and commute via the coaster to Orange County or even L.A.
So occupancy is your issue, and a Letter of Explanation is your answer.
That is the reason for the work location approval condition. True, you can commute to and from and you can work the cost of the commute into loan approval process. However, more than likely not on a conventional loan.
You might research this yourself on efanniemae.com of Freddit Mac's version on underwriting guidelines but know that most all lenders not selling directly to Freddie or Fannie are adding their own set of credit underwriting overlays. Some lenders call them "credit enhancements"...
Owner occupancy is the key to low down home loans and if there is any question or doubt on this and there is here in your casse it seems, you have many obstacles to overcome to proof it is truly owner occupied.
McAllister Homes Real Estate
Was that file actually underwritten? Or was that the opinion of the lender?
I am finding that some real estate agents and loan officers do not want to work with low down payment buyers....any excuse to push you off.
We can do your loan. Happy to help. cg