VA Home Loan: Can I get a second mortgage when first is underwater?

Tips and Deals Forums Home Mortgage VA Home Loan: Can I get a second mortgage when first is underwater?


This topic contains 9 replies, has 2 voices, and was last updated by  Anonymous 8 years, 6 months ago.

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  • #409569


    very very good. you basically have a contract which was signed on the day of the program and it should be honored.

  • #409570


    It will depend on several factors, perhaps the big one factor being whether or not you were approved on a “clear to close” basis or approved with certain ” conditions to be met” that would bring you to a “cleared to close state.”

    The fact that you were “locked” doesn’t mean your entire application is locked, only your interest rate. If your loan officer is an “employee” of Wells Fargo that could have some bearing on your situation, either good or bad.

    There are programs being dis-continued on a daily basis, but it’s on a lender by lender basis. There have been some national lenders out there that have messed up big time in recent years, and we are bailing them out now.

    There are numerous programs out there that will still make your deal go at 100% and a 2% ratio difference is not a big deal in many of those programs.

    Manual Underwriting, Down Payment Assistance programs accepted by FHA, are just a few of your options. It is time for you to take charge of the loan situation and remember that you shouldn’t be put in jeopardy because a “program has ended.”

    If it were me, I’d end my program with Wells Fargo. Communicate with the attorney’s, they know what’s going on and I’m only guessing there are not three other buyers lined up to buy that house you are going after.

  • #409571


    The PMI companies are no longer insuring 100% loans. If your PMI certificate was not ordered you could be out of luck for that program.

  • #409572


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  • #409573


    Dude! I would NOT go through Wells Fargo………they screwed us royally. They say one thing and then turn around a do another. In fact, I ended up losing my house because of them even after re-financing as they suggested. Get a lawyer and be ready to fight them the rest of your life.

  • #409574


    A tax lien is in first position for repayment, so pay Uncle Sam or whoever you owe. You knew about this lien before you signed the loan papers. Please don’t ask us to feel sorry for you.

  • #409575


    David, they are correct. You have a decision to make. Take care of that lien, deny and prove it isn’t yours, or walk away from this loan.

  • #409576


    Did THEY sign all the papers?
    Until the time they fund the loan, they can pull out. Usually, banks will run your credit one last time before closing/funding and if they find something on there that bothers them, they can require you to fix it to get the loan or decline your loan altogether.

  • #409577


    They have as much time as they want to fund the loan. I strongly suspect you were NOT unaware of this tax lien. Only a blind bat could be unaware. That YOU signed means nothing. You were caught with an unpaid tax lien, and Wells Fargo isn’t going to fund until you pay off or clear that lien. Quit trying to play games.

  • #198488


    We have negative equity in our current home, so we aren’t able to sell it anytime soon. We are trying to rent our current home in hopes of purchasing a new home (with better terms) closer to work (I have an hour and a half commute one way!).

    Here’s the problem: 30% negative equity, so I don’t think we qualify for another mortgage, especially since the second mortgage, when combined with the first, would consume 65% of total monthly income.

    No car payments, no credit card payments, nothing…flawless credit 800+ beacon.

    Could we, therefore, qualify for a VA loan (I have the pre-qualification from VA already) for a new primary residence? I think it’s an FHA requirement (the 30% equity or have a rental agreement and a bunch of other documentation) that prohibits another loan when the first is an underwater rental, but wondering if the VA loan route is an exemption to this policy.

    In short, would a mortgage company be able to make a VA loan happen (though not required, I would also put 10%+ down and find a house being sold under appraisal), although I currently have another mortgage underwater and the two mortgages together would put me at 65% of gross monthly income?

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