Zeros can make a difference

A phone call from the mortgage company jolted everything today; problems with pay stubs, issues with homeowner’s insurance (the roof issues) and the fact that the mortgage officer figured my loan at a 20 percent down payment as opposed to a lower down payment amount previously agreed on.

This changes everything.

One week before closing, a major setback like this can mean a deal falling through; Twenty percent of a house’s cost as a down payment can break the bank. A lower down payment isn’t an option, this house in its sordid condition won’t pass an FHA appraisal. When obtaining a mortgage and putting anything less than 20 percent (the magic number in real estate) down requires a mortgage other than a private lender like I’m using. Federal Housing Authority (FHA) loans are fairly common, but it means getting the feds involved,  a higher price tag, and a few more trees worth of paperwork. In short, the deal won’t fly without more money down, money destined to used for basic repairs and upgrades at “The Pit.”

I’m hoping it can be made to work, if not, this blog would be moot; I’d be a renter and most likely have to stay here and learn to live with the upstairs passion-a-thon.