Do you own the house that your parents live in also? If so, that's where the problem lies. If you only own one property then this shouldn't be an issue. If you own more than one and you actually live in the property you are refinancing, this should be an easy fix. There has to be more to this story because occupancy is very straight forward; you either live there or you don't. It should be very easy to prove either way.... more
Q: Are there any grants or other programs that will assist a buyer with the down payment on the purchase of a home in the city of Lynchburg?
A: Lynchburg has a Neighborhood Development Foundation which offers some programs at http://www.lndf.org/ Virginia Department of Housing & Finance has a down payment assistance program at http://www.dhcd.virginia.gov/HomelessnesstoHomeownership/HOMEownership_Down_Payment_AssistanceProgram.htm
Q: I know sellers can not assist any longer with down payments for FHA loans but can the seller assist if it's not an FHA?
A: Sellers cannot assist with down payments for any type of financing, FHA was the only exception up until about 2-3 years ago when they changed that guideline no longer permitting seller funded down payment assistance.
The exception to that is if you are buying from a family member, then the family member can give a "gift of equity" towards the down payment. Say for example $125k was owed on their home, but it's worth $200k, and the seller/family member only wants to net $135k from the transaction - you could structure it as the sales price being $168,750, you get a new loan amount for $135k (which is 80% of the purchase price) and the down payment comes from the seller's equity between the $168,750 sales price & $135,000 loan amount you are getting... therefore you have 20% down.... more
Depending on your circumstances, there is likely a way to deal with your scenario. As others have pointed out there are options (HELOC, refi, bridge loan, sell first, etc), my bank is one of the few banks that will allow you do an 80/10/10 piggy back loan or a bridge loan. This means you can get into the new property with as little as 10% down. If you are interested I would be more than happy to go over some options over the phone.... more