Help Please! In Contract for primary residence

[Naveen Kolagatla]

Hi,

I am currently in contract with a new development builder in Bay area, CA. My loan got rejected after 21days financial contingency period. To be exact on 22nd day. The reason my loan delayed (generally it takes 7 days in our case it took 18 days) is due to Covid-19/refinance issues for lender and the reason my loan denied is due to change in lending terms for Jumbo Loan they requested 20% down and 15 months of reserve (Lender Estimate is for 15% down and 6 months reserve). I contacted my real estate agent he insisted to look for another loan as he feels I will jeopardize my earnest money. Both the real estate agent and Builder sales person is insisting on applying for another loan, but I am requesting them to extend the financial contingency so I can feel safe. Currently builder in extended the closing date without increasing the financial contingency period or adding the new Covid-19 addendum. Any advice is really appreciated.

- Naveen