So i was denied PMI on our new house due to credit issues. Anyone know if there are any other option? Does anyone do 80/20 mortgages these days?
Tis a sign of the times. I hope you can really afford the house.
I financed 100% plain and simple, and didn’t pay a PMI. My lender offered a slightly higher interest rate in exchange for not requiring a PMI.
hmm interesting, what lender did you use?
We definitely can afford the house; It’s well beneath our means. We just happened to find this perfect house right at a time where if we put 20% down, we’d have no savings left… and unfortunately my wife’s credit is what caused PMI to be denied.
Can you qualify for a SONYMA loan? They only require like 3 or 5% with no PMI.
I don’t think so, income too high it seems.
It might be a stretch, but could you qualify on your own? I cant believe they denied PMI.
I was going to suggest FHA loan with their smaller down payment requirement but that would still require PMI.
My guess is you’re over the income restriction for SONYMA. Generally people who can afford houses outside the ghetto make too much for SONYMA. Remember, this is NY, where only the useless of society get help and the rest of us get taxed. At least that’s what the restrictions were like when I was looking 8 years ago.
What about not putting your wife’s name on the mortgage if it’s her credit that’s really messing you up? She can always be added should you ever refinance down the road.
yeah i applied alone but my debt to to income ratio was too high that way, so i was denied the loan and PMI. Unfortunately, my wife’s income is required to bring down the debt/income ratio, however her credit prevents loan approval due to PMI… conundrum lol
if you have savings, why not use a portion of it to lower your debt/income ratio to an acceptable level (is it over 50%)
Eh, the income limit is $67,900 or $81,xxx in buffalo, depending on where you apply for. Not too bad for a one income applicant. If you’re under that, I would apply by yourself.
was your denial contingent upon something? If so, fix the something and re apply.
Denied PMI, I have to say I have never heard of that before:gotme::gotme: Wouldn’t they just deny you the mortgage instead of saying you are approved for a mortgage but on PMI you are fucked??? I BELIEVE that you can do an 80/20 mortgage, I could swear that I remember that being an option when I bought my house back in 05.
I paid PMI on my SONYMA loan, I bought my house over 5 years ago so things might be different now.
Yeah definitely stupid the way it works… Here’s the explanation… mortgage company says “your cash and income are sufficient to get the loan through us, but to get the loan you need PMI. and the PMI firm say we’re a risk, so no isureance for you”
Looking into other lenders now… Unfortunately for PMI to say yes… my wife’s credit rating would need to jump about 100 points… not going to happen anytime soon.
I went through SonyMa… That was a great process tracking down gift receipts from people after our wedding. Then, they took away my closing cost assistance because I used “gifted” money (even though I did not break even on the wedding)
If you got denied PMI it was probably for good reason.
Have you considered saving up more money?
We’ll their “good reason” is clear; it’s that my wife’s credit rating is below their FICO number that they require to grant PMI. Unfortunately that score doesn’t illustrate our current financial situation, which is quite good. The pitfalls of bad choices way early in life that stick with you i guess…
We’ll see what happens today… in contact with mutiple 100% financing lenders now who should get back to me… fingers crossed
Can you buy a house in just your name even though your married?
unfortunately, my income alone doesn’t cut it.
So you are having a hard time because of your wife’s credit? Where have I heard that before?:banghead:
Welcome to the party.