WWGRMD - "creative" bridge financing for a home purchase

As a long time lender I can say throw out about 95% of everything said in this thread, it's just flat out wrong!!

Yes, Dodd-Frank got rid of old time bridge loans and because it's now a law and not a rule or regulation it will take another act of Congress to get it changed.

As far as closings, fraud survives closing.

Some states close into escrow and so closing isn't final till it's final.

It's the law, your credit must be checked just prior to closing and if there are inquiries or new credit your approval is no good.

SVreX said:

In reply to z31maniac :

Now you are being argumentative. 

It’s not ignorance of any law. I know what fraud is. 

You admitted you didn’t know if your credit score had changed. Saying “I don’t know” is not fraud, nor illegal. It’s honest. 

Your focusing on credit score for some reason. They ask if you have taken on any new debt or opened any new lines of credit. When you used the card the night before, "I don't know," is patently false. 

carguy123 said:

As a long time lender I can say throw out about 95% of everything said in this thread, it's just flat out wrong!!

Yes, Dodd-Frank got rid of old time bridge loans and because it's now a law and not a rule or regulation it will take another act of Congress to get it changed.

As far as closings, fraud survives closing.

Some states close into escrow and so closing isn't final till it's final.

It's the law, your credit must be checked just prior to closing and if there are inquiries or new credit your approval is no good.

Just curious on what "fraud survives closing" means? Does that mean fraud won't impact your mortgage or it will? 

Just interesting.

I agree with rex and dj, rent in the new city.  At least for a year or two. I'd look into renting out your old place rather than do your plan B of selling.  Even tho your old city is a hot market and selling would be quick... I'd still prefer to rent it out if at all possible. You're slightly flow positive and its a a future "plan b" for you if the new city doesn't work out.

Hard money loan and eat the interest as long as you qualify. Easy as that. 

I would have a hard time moving and not renting for 6-12 months to get your bearings int he new area though, 

z31maniac said:

SVreX said:

In reply to z31maniac :

Now you are being argumentative. 

It’s not ignorance of any law. I know what fraud is. 

You admitted you didn’t know if your credit score had changed. Saying “I don’t know” is not fraud, nor illegal. It’s honest. 

Your focusing on credit score for some reason. They ask if you have taken on any new debt or opened any new lines of credit. When you used the card the night before, "I don't know," is patently false. 

No it’s not. 

It is dependent on whether or not the credit balance will survive for 3 months or more. 

Just using a credit card does not count as a credit balance. 

By your argument, EVERYONE would be ineligible for a mortgage because they have (and use) credit cards (even with no balance carries over).  Better not put gas in the tank.

You haven’t quoted what the loan officer said, but it is most likely the intent of what they were asking was if anything had changed that would affect your credit score. A simple purchase would not. 

In reply to z31maniac :

You are assuming “Have you taken on any new debt or lines of credit” means “Have you used your credit card”. It doesn’t. 

If you opened a NEW credit card account, it would count. 

It isn’t fraud to use an existing account they already know about.  They already know what your credit line is, and have taken that into account.