I am in dire need of some guidance. Here are the logistics:
Trying to acquire an owner-occupied 2-family using my FHA loan.
Mortgage company rejected me because:
My job is 2 hours from the property
I work in Jefferson City, MO
Property is in St. Louis, MO
I commute to St. Louis, MO often/frequently throughout week, not just weekends, holidays, etc.
I WILL BE AN OWNER-OCCUPANT...I will not rent out downstairs unit (upstairs unit has a tenant in already, paying $550 per month)
I am actively seeking employment in St. Louis.
Mortgage company denied me saying there is an issue with the 2 hour distance, even though there are no Federal guidelines for distance from home to employment.
What are my options, moving forward? Do i need to find a bank that will allow me to purchase this home? Do I need to look at a private investor (and how exactly do I pay them)?
SOMEBODY HELP ME PLEASE?!! I'VE ALREADY PAID EARNEST MONEY...ALL INSPECTIONS ARE DONE...I WAS TOLD THIS AT CLOSING.
Do you currently commute to St. Louis for your job or just for personal reasons?
Something doesn't add up. Normally the closing is not even scheduled until all underwriting conditions are met and the lender has given a "clear to close". And it is not at all uncommon for someone to buy a home with plans of relocating to the home.
I suspect the issue has more to do with your employment than with you relocating. (You basically told your lender you were planning to change jobs shortly after closing...something they obviously don't like to hear).
The first thing you probably need to do is negotiate an extension to your contract in order to (hopefully) avoid losing your deposit.
Then you might try to work something out with your current lender on how to meet their conditions - maybe if you find equal or better employment in St Louis and can document your new employment in the next 15-30 days they'd consider clearing that condition and making the loan? - This is a discussion you should have with your loan originator: "What do I have to do to get underwriting approval?".
If that's not feasible, you could shop around for other lenders. Try to find one who holds their own paper and does their own underwriting rather than a large national/regional bank or mortgage broker that just wants to sell off a conforming note.
Most hard money lenders will not loan on an owner occupied property, so that's a long shot. But if you were able to find one, you could possibly get in with hard money, then do a rate/term refinance in a few months after the employment issue is settled.
HUH? I closed on an MFU 120 miles and 2hrs one way, but that was pre-2008.
sorry for the lat reply yall...let me get my thoughts together
anthony G...i go for personal reasons
Thanks Jeff C...i didnt get the "closing" call...my original closing date was october 31st...it was extended to november 14th...i was told yesterday that underwriters have an issue with the distance of job...they said that i will be residing in home less than 50%...therefore, it is appearing as an investment property to them...
Jeff B...i told them...people on the east coast commute state to state from work and home....they really gave me a hard time...
they don't think that i will reside in property...that i am purchasing it as an investment...because it is a duplex...yeah...i've moved on...trying to find a bank who's underwriter as no issue with my commute
@Tara Myrick I don't think you will get an approval. 2 hrs away is too far to be considered commuting distance for everyday purposes. While you might not intend to rent out the 2nd unit, that is not the same as owner occupying it. The mortgage banker should have never given you the green light to get the loan started.
Its true that in the East Coast folks go from state to state and do commute 1 1/2 to 2 hr. But that's the East Coast. It considered "normal" here. Where you are its not normal.
Thx Upen...I told them I am actively seeking employment in st louis...I just go here multiple times throughout the week...I know I am relocating there. ..much of my "surrogate" family is there...I stay on the highway...and I'm waiting for our satelite office to have an opening...thank you for your honesty
Join the Largest Real Estate Investing Community
Basic membership is free, forever.