Purchased a home in 2008 and contract was written up to put down 8k and was receiving a buy down mortage.

Asked by Maximus, 77469 Sat Jun 6, 2009

The first year was 1900, 2nd 2100, and 3rd year through 30 2398. When it came time to meet with the lender they advised that we could not do the buy down program and had to put 12,100 down and mortgage would be 2398 fixed for 30 years.
Obviously now we can't afford that payment. The townhome is under construction and we will not close for another month. We were approaved for a loan in January and of course it expired.
I contacted the seller and advised that since the numbers changed that were under contract we can't go forward. We also put 2k down in earnest money and 3 towards closing in march.
The seller has now advised they are not sure if they can give us the 5k back.
What are my options?

The purchase contract specifically says purchase with 8k down. The buy down program was verbal but the seller acknowledges they made a mistake with the numbers.

Thank you...

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T.E. & Naima…, Agent, Dallas, TX
Sat Jun 6, 2009
Financing regulations and rules have changed a lot since 2008.
That may be hard to understand and accept but the billions of dollars of foreclosed mortgages in California, Nevada, and Florida, not to mention every other lesser location, caused massive failures within the banking system, collapsing the single largest mortgage provider, Countrywide, into Bank of America, for example.
We didn't see the run-up in prices in Texas and didn't have to same level of profligate lending that were widespread in those place, but we did have our share of abuses.

These days financing is the biggest single cause of contracts going bad. Last year 580 was acceptable as a credit score. 0% down was acceptable. Now, you need at least 3-1/2% down and a 620 credit score.

The good news is that rates are low. If you can qualify for a loan (in January you did), your payment would be better now anyhow, most likely. See if you can get pre-qualified again with a lender. You may be surprised by a lower monthly payment. The cash down payment, however, is never going to be below 3.5% unless you are a veteran or the house is located in a rural area.
Web Reference:  http://www.Mortgages-TX.com
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