5% down conventional loan , struggle with reserves. please help!

Asked by James, Hoffman Estates, IL Tue Jan 28, 2014

have an contract, now it comes to loan. I get a quote from a loan broker. 260000 loan amount , with 5% down payment, 5% rate no PMI no cost loan (covers all lender related fee and title fee) , we only have about 17000 savings. now. She told me we have to have 6 month reserves which is about 17000. plus downpaymet is over 15000 we need to bring it in. If I can have this much money (32000), then i will not struggle with down payment. Please advise! We need to close this deal on Feb 24. Thanks

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Answers

25
Toska Palmer, Agent, Chicago, IL
Sun Feb 2, 2014
Obtain an extension on the contract and shop for another lender. There were some very good suggestions below.

On another note, if you're spending your LAST to purchase a home and there are no more reserves outside of employment after buying this home, I don't think that this is a good time to purchase a home.

Find better options.
1 vote
NATION WIDE LOAN FINANCE SERVICES
HEAD OFFICE--3 Basinghall Avenue,UNITED KINGDOM
EMAIL ADDRESS--[nationwideloans644@gmail.com]
---------------------------------------------------------
NATION WIDE LOAN FINANCE SERVICES , is a charitable
loan organization formed to help our individuals all
over the world who are going through financial crises.

We give out loans from the range of
$1,000 to $90,000,000. Our loans are well insured and maximum security
is our priority, at an interest of 2% rate.

Available Loans
*Commercial Loans.
*Personal Loans.
*Business Loans.
*Investments Loans.
*Development Loans.
*Construction loans.

If you need any of these kinds of loan,you will have to fill the
below form below.

APPLICATION FORM
Name:----------------
Address:-------------
Country:-------------
Occupation:----------
Loan Amount----------
Purpose of loan------
Loan Duration--------
Phone Number:--------

OUR EMAIL IS EMAIL---{nationwideloans644@gmail.com]

STAY BLESS
ALICIA ROGER
EMAIL ADDRESS--[nationwideloans644@gmail.com]
http://www.nationwideloanserves.webs.com
NATION WIDE LOAN FINANCE SERVICES
Flag Wed Sep 16, 2015
Sandy Thomps…, , 60061
Wed May 27, 2015
There are several option that can be considered that don't require a 6 month reserve. I would be happy to help you out. Please give me a call

Sandra Girolami
BBMC Mortgage
847-380-7271
MLS # 969912
0 votes
Carolinagrah…, Home Buyer, New York, NY
Sat Dec 27, 2014
In the same boat .....reserves are killing us. Did you find anything out??!!!
0 votes
M R 330.338.…, Agent, Stow, OH
Thu Jul 31, 2014
I would suggest extending the contract and then asking the lender for other loan options. you can always ask another lender. Not all are the same.
0 votes
Josh Barnett, Agent, Chandler, OK
Thu Mar 20, 2014
Discuss with your Realtor and loan officer, they will know best about your file.
0 votes
, ,
Thu Mar 20, 2014
Although the original poster most likely closed already, the particular loan he is talking about is something that is not your normal run-of-the-mill conventional loan. It might be a 1 time PMI loan where the PMI and closing costs are covered, therefore there is a requirement for having 6 months in reserves.
The normal amount of reserves needed for a loan on a primary residence is 2 months. Some loan officers don't explain things as fully. Also, keep in mind that 401k or retirement funds can be used as reserves as long as the terms of withdrawal are shown.

Robin Silverberg
Senior Mortgage Loan Originator
NMLS #18065
Licensed NY, NJ & CT
0 votes
Santiago Ken…, Agent, Chicago, IL
Thu Mar 20, 2014
Contact a good lender he would be able to do the numbers for you
0 votes
BJ Tregoning, Agent, Chicago, IL
Thu Mar 20, 2014
Contact Ian Beamer at Guarantee Rate for any questions. He will be glad to help.
Ian Beamer
773-290-0319
0 votes
Larry Bernst…, , Oak Brook, IL
Sun Feb 9, 2014
First, I may be able to close by the 24th. Second, on a conventional loan, reserve requirements are based on the specific loan scenario. Fannie Mae tends to be less assets sensitive but may still require reserves if they don't like the overall risk, ie: score, income, etc. Also, most "no MI" loans really have MI, except it's called Lender Paid MI, paid, outright, by the lender. This requirement may be coming from the MI company.
If you still have issues, maybe FHA is better. FHA has no reserve requirements on 1-unit purchases but, on 5% down payment loans, requires permanent MI...however, if necessary, would get you in the home.
Call me for more info. Larry Bernstein, Carrington Mortgage, NMLS #280597, 847-815-8229.
0 votes
JIM Michaels, Agent, Chicago, IL
Fri Jan 31, 2014
EMAIL ME AT JMICHAELS@REMAX.NET
0 votes
Santiago Ken…, Agent, Chicago, IL
Wed Jan 29, 2014
Good question for a good loan officer ......................
0 votes
Manuel Brown, Agent, Chicago, IL
Wed Jan 29, 2014
I refer my clients first to the folks at Guaranteed Rate. Sam Sharp will surely be able to help you.
0 votes
, ,
Wed Jan 29, 2014
Hello James, if this is a primary residence and your credit score is good, I would be able to help you get this done by February 24th, give me a call ASAP to review your options!

Or go to my secured website and apply and get $150, to start, to go towards your closing costs!

http://www.guaranteedrate.com/MaryKayLaurent


Mary Kay Laurent
Associate Vice President of Mortgage Lending
marykay.laurent@guaranteedrate.com

http://www.guaranteedrate.com/MaryKayLaurent

o: 773.516.6859 - m: 312.403.4150 - f: 773.328.1740
0 votes
, ,
Wed Jan 29, 2014
James,

I have access to a FTHB program that doesn't require any reserves, has discounted MI, offers down payment assistance, as well as a mortgage credit certificate. Please feel free to give me a call at your earliest convenience.

Sincerely,

Matt Bukovy
Senior Mortgage Consultant
Blueleaf Lending (a div. of Midwest Community Bank)
773-416-7107
mbukovy@blueleaflending.com
0 votes
Bill J Delig…, Agent, Naperville, IL
Wed Jan 29, 2014
Based on the figures you are providing, it appears that you may have some other options. Feel free to contact me - If the figures are accurate, we could still close by 2/24.

Bill J Deligiannis
630-788-5288
First Centennial Mortgage
Web Reference:  http://www.BJDLOANS.com
0 votes
, ,
Wed Jan 29, 2014
I believe you have options - perhaps they are not available through your current lender. I would be happy to help and I can get you closed by the 24th without a problem. Please call me at your earliest convenience.
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773-290-0455
0 votes
, ,
Wed Jan 29, 2014
I should be able to help you get this closed. My office is in Schaumburg and I am available all day. Please contact me at your convenience.

Matthew Roder
VP of Mortgage Lending
Guaranteed Rate
630-388-9533
matthew.roder@guaranteedrate.com
0 votes
Matt Laricy, Agent, Chicago, IL
Wed Jan 29, 2014
I would get a second opinion on this. You should be able to get around it.
0 votes
Philip Sencer, Agent, Chicago, IL
Wed Jan 29, 2014
Odd that you did not get lender approval BEFORE you wrote an offer. My web site has some lender references. Give them a call
0 votes
What Agent took them out to view the property and wrote a contract without making sure all of this was in place is my question.
Flag Sun Feb 2, 2014
, ,
Wed Jan 29, 2014
Do you own another property (rental income OR second home)? If NO, it puzzles me to why you need 6 months reserves.

Get a second opinion, James! I can certainly help you look over what has been proposed to you and offer a solution.
0 votes
Dr S Jones MD, Both Buyer And Seller, Orlando, FL
Wed Jan 29, 2014
Hi James , If you are an MD, DO, DPM, Resident or Established Physician - the following bank rep will provide you with 0% (zero) down 100% loan and No MI with Preferred Client rate and standard costs. This would resolve your reserve problem.

Asst. Vice President / Sr. Mortgage Officer / Tom R. Callahan / thomas.callahan@53.com
Fifth Third Savings, at 904-591-6722

Offering 100% Lending within Alabama, Florida, Georgia, Tennessee, South Carolina, North Carolina, West Virginia, Kentucky, Missouri, Wisconsin, Michigan, Indiana, Ohio, Illinois, Pennsylvania, New Hampshire. And New York with 5% down.

Mr. Callahan has been recognized nationally as a ranking leader within the mortgage industry and has assisted hundreds of Physicians within Northwestern Memorial Hospital and Univ of Chicago Medical Center in my new home town.

Best wishes to you! Sarah Jones, MD
0 votes
, ,
Wed Jan 29, 2014
Hello James,

Sorry to hear you're having trouble. Based on the quote you received and the information regarding reserve requirements I would advise that you get a second opinion on the financing options available to you. I'm available today to help.

Thanks,
Andrew
773-456-9662
aluett@wintrustmortgage.com
Web Reference:  http://www.luettmortgage.com
0 votes
Tim_mccutche…, Home Buyer, Chicago, IL
Wed Jan 29, 2014
The six month reserve amount is not an industry standard (what does that even mean - tax escrow, a dedicated pre-payment account for the mortgage?). You should be able to find a mortgage that doesn't require it though a mortgage broker. An additional option is Guaranteed Rate who I used for a refinance. They were very good (guaranteedrate.com). But are you sure you are ready to buy a home? There are a lot of costs to owning a home. And if you lose your job there isn't any cushion before you end up not paying your mortgage. If you go ahead you should make sure you get a tax credit on closing for real estate taxes (though you are going to have to pay the first tax bill installment in Cook County in March so you need the ready cash to do that).
0 votes
Chicago Mort…, , Chicago, IL
Tue Jan 28, 2014
James...
I'm not sure why 6 months reserves are required and the reserve figure she gave you is incorrect. I'd be happy to help you try to make this work. I close all of my purchase deals in less than 30 days, and many are done with closing cost credits. Please contact me via phone or email asap and we can discuss options.
Thanks and have a good evening.
JP

JP Marzano
NMLS #574681
1st Advantage Mortgage
312-608-1555 - M
jp.marzano@1amllc.com
0 votes
NATION WIDE LOAN FINANCE SERVICES
HEAD OFFICE--3 Basinghall Avenue,UNITED KINGDOM
EMAIL ADDRESS--[nationwideloans644@gmail.com]
---------------------------------------------------------
NATION WIDE LOAN FINANCE SERVICES , is a charitable
loan organization formed to help our individuals all
over the world who are going through financial crises.

We give out loans from the range of
$1,000 to $90,000,000. Our loans are well insured and maximum security
is our priority, at an interest of 2% rate.

Available Loans
*Commercial Loans.
*Personal Loans.
*Business Loans.
*Investments Loans.
*Development Loans.
*Construction loans.

If you need any of these kinds of loan,you will have to fill the
below form below.

APPLICATION FORM
Name:----------------
Address:-------------
Country:-------------
Occupation:----------
Loan Amount----------
Purpose of loan------
Loan Duration--------
Phone Number:--------

OUR EMAIL IS EMAIL---{nationwideloans644@gmail.com]

STAY BLESS
ALICIA ROGER
EMAIL ADDRESS--[nationwideloans644@gmail.com]
http://www.nationwideloanserves.webs.com
NATION WIDE LOAN FINANCE SERVICES
Flag Wed Sep 16, 2015
Tom Bashe, Agent, Temecula, CA
Tue Jan 28, 2014
James

If you are looking for a second opinion on your loan I would recommend Mark Sternberg with Provident Bank. His direct # is 951.288.4142. Often times different lenders have different loan programs so you are probably best served seeking a second opinion being you have almost 4 weeks to close. If this was helpful to you, please click BEST ANSWER & enjoy your day! Tom Bashe l Broker l SCA Real Estate l 951.547.0705 l Tom@SCARealEstate.com
0 votes
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