Issue Came Up With Financing Just Before Closing

[Andrew Merritt]

Hey All, this gets a little complicated so I'll try to explain clearly.

I purchased a duplex back in september w/ cash and did delayed financing with 70% LTV. Using those funds (and some others), I purchased a new primary residence for my family in December with cash, planning on doing delayed financing again. We are going to be renting out our current house once we move. I cleared this all up with my money guy beforehand to make sure we were all good and he said we're fine, he does this all the time. I just found out yesterday, the day before we're supposed to close, that the underwriter has an issue w/ it and we won't be able to close now until the money is seasoned, 6 months from when we closed on the duplex. He claims we're using borrowed funds to pay for the new house.

The new place is somewhat of a fixer upper so we have contractors to pay.  We have enough reserves to make it through, but it would be much more comfortable if we could get our cash out now.  

Does anybody have any opinions on what I could do?  Maybe go to a different lender?  I'm just worried that they would find the same thing.  

One thing my lender said we could do is close now on the new house, but then immediately pay off the duplex.  This would leave us w/ more than enough, but I would hate to go back in 6 months, refinance the duplex again, and have to pay all of the loan origination fees.

[Jay Helms]

Ah Banks! Why Crypto bitcoin will be the currency of the future.  I can’t help you, just saw the opportunity to take a stab at Banks. After all Bank is a 4 letter word.

I did write a blog about my dealings with banks. It’s on my site.