Silvermist Plan 3 vs Torrey Plan 3 vs Juniper Plan 3 vs Current home

NEW -> Contingent Buyer Assistance Program
well that's not good. New home prices are going to get higher and that will not help your debt ratio. is it too much risk/hassle to sell your house right now, find a temp rental to live in and hopefully you can buy in BP a couple phases later?


ps9 said:
BP plans on hold for now, looks like I'm over my debt ratio by 2% for noncontingent buyer.  The $10k mello instead of the expected $8k mello didn't help.  As well as $1.4 mil for Torrey starting price.  K.Hov and StanPac is probably out of my budget and that leaves Pulte, which is not enough pull to make me move, unless I get that lot at the end of the CDS.
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Sell/rent before buying BP is off the table, I can't go all in like that.  Maybe lease back but again don't want to back myself in a corner.
 
ps9 said:
Sell/rent before buying BP is off the table, I can't go all in like that.  Maybe lease back but again don't want to back myself in a corner.
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Since you have time for BP, can you do a cash-out refi on your current house and then make the debt ratio work for BP?  You can then sell after purchasing in BP and  since you are planning to refi anyway a temporary hit in interest rate may not be an issue. 

Hey Bones, quoted properly without a lesson from PS9 ;D
 
Irvine Dream said:
ps9 said:
Sell/rent before buying BP is off the table, I can't go all in like that.  Maybe lease back but again don't want to back myself in a corner.
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Since you have time for BP, can you do a cash-out refi on your current house and then make the debt ratio work for BP.  You can then sell after purchasing in BP, since you are planning to refi anyway after your sell your current house a temporary hit in interest rate may not be an issue. 
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this is just moving debt from one house to the other (from BP house to current house). debt ratio stays the same.
 
but he is already on 5/1 ARM; it is more difficult to lower his monthly payment further. unless he is going to do the MS loan.

Irvine Dream said:
qwerty said:
this is just moving debt from one house to the other (from BP house to current house). debt ratio stays the same.
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Unless ofcourse if he can do a cashout refinance into a longer term?
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My broker mentioned she has a lender that doesn't care if I have my current residence on the books, of course the rates higher, but I can refi in about 6 months.
 
she meant you cannot refi in 6 months without her getting burned.

ps9 said:
My broker mentioned she has a lender that doesn't care if I have my current residence on the books, of course the rates higher, but I can refi in about 6 months.
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Ps9 - keep your current house, which you will have to do a "little" upgrading.

Plus I thought you were going to start up a franchise or something. So you need the extra cash for that.
 
ps9 said:
My broker mentioned she has a lender that doesn't care if I have my current residence on the books, of course the rates higher, but I can refi in about 6 months.
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But don't you need the builder's lender to qualify you non-contingent?
 
bones said:
ps9 said:
My broker mentioned she has a lender that doesn't care if I have my current residence on the books, of course the rates higher, but I can refi in about 6 months.
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But don't you need the builder's lender to qualify you non-contingent?
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Yes, just doing a preview with my actual lender, hopefully builders lender will be on the same page
 
eyephone said:
Ps9 - keep your current house, which you will have to do a "little" upgrading.

Plus I thought you were going to start up a franchise or something. So you need the extra cash for that.
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Once I get a BP price sheet then I'll know for sure.  the franchise thing was just a thought, nothing more.
 
So broker got back to me and said its gonna be close for me to go noncontigent.  Might as well go with lenders that don't count your current residence against you (not sure what she meant by that, debt is debt no?).  5/1 ARM is 3.375% and 3/1 ARM is 3.125.  Not bad for short term.  Now I just have to check if the builders lender will agree or have the same access to these loans.

BTW, the Morgan Stanley IO LIBOR ARM is still available and by my calculations, rates will go from 2.0% to 2.125% soon
 
so do the Morgan Stanley IO LIBOR ARM first, lower your D2I (and Alice gets burned), and then check if your new D2I allows you to buy non-contingent. If so let Alice do your new home to offset the prepay penalty she has to pay when you refi you current home with the MS IO LIBOR loan.

ps9 said:
So broker got back to me and said its gonna be close for me to go noncontigent.  Might as well go with lenders that don't count your current residence against you (not sure what she meant by that, debt is debt no?).  5/1 ARM is 3.375% and 3/1 ARM is 3.125.  Not bad for short term.  Now I just have to check if the builders lender will agree or have the same access to these loans.

BTW, the Morgan Stanley IO LIBOR ARM is still available and by my calculations, rates will go from 2.0% to 2.125% soon
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ps9 said:
So broker got back to me and said its gonna be close for me to go noncontigent.  Might as well go with lenders that don't count your current residence against you (not sure what she meant by that, debt is debt no?).  5/1 ARM is 3.375% and 3/1 ARM is 3.125.  Not bad for short term.  Now I just have to check if the builders lender will agree or have the same access to these loans.
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Maybe. I didn't close with the in-house lender. They outsourced/referred me to one of the big banks (who was able to give me a better rate) but allowed me to get the lender credit.
 
@bones, good to know, hopefully I can do this as well. 

Still trying to align my cash accounts/FICO for the pre-qual next month.  My credit score seems to be trending higher, close to 800 so I guess keeping close to 0% credit utilization does help.  But since CC companies report at different times (?) to credit agencies, you'll have to finesse your accounts over 1-2 months to get the result you want.

I'm considering taking a loan from my 401k but wouldn't that just increase my debt ratio?  It directly takes out the loan repayment amount from my paycheck each time, so I don't think it will make it to the credit bureaus as new debt. 
 
ps9 said:
I'm considering taking a loan from my 401k but wouldn't that just increase my debt ratio?  It directly takes out the loan repayment amount from my paycheck each time, so I don't think it will make it to the credit bureaus as new debt. 
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Taking a 401k loan does not affect your credit... you are borrowing your own money
 
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