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[quote=Anonymous]Apologies that this is long, but I'm in a pickle.  We're in a two-bedroom with three kids and two dogs, so we really need to move.  Fortunately, we found a new build right around the corner that has everything we need.

FINANCING COMPANY #1

We did the preapproval paperwork with financing company #1, and they said we would qualify for 90/10 financing at 4.0%.  This option also would allow for us to pay down and refinance every year but with a locked-in interest rate.  This is helpful because my income is largely based on end-of-the-year bonuses.  This also is helpful because we currently have very little in savings because we paid off the final $150K in student loans using last year's bonus.

After submitting the paperwork, however, (and after we made a $40K earnest money deposit on the home) the company discovered "in their final review" that the house is zoned as a condo and does not qualify for this financing.  Instead, we can have the same option if we make it a 85/15 loan.  To do that, we would need to take a hardship withdrawal from our 401K or ask for an advance from my employer, which seems like a terrible idea.  The financing company said that we could not take a loan out to cover the difference.

FINANCING COMPANY #2

We then went to the financing company associated with the builder.  They offered us a 80/10/10 option, wherein we take out a personal loan for 10%, put 10% down, and then mortgage the 80%.  This loan would have a 4.75% interest rate and would not allow for the penalty-free refinancing provision.

Help, oh DCUM financial gurus?  Which poison would you drink?[/quote]

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