Posted on: 30th Jun, 2008 11:12 am
In Michigan, can a bank turn you down for a conventional mort. after they give you a constr.loan.
I received a construction loan 12 months ago and have been paying interest only for the last 12 months on a floating interest rate, now my bank does not seem like they are going to give me a conventional mortgage. My credit score has gone down since I have received the loan, My question is can the bank deny me a conventional mortgage and demand the money back from the construction loan?
I received a construction loan 12 months ago and have been paying interest only for the last 12 months on a floating interest rate, now my bank does not seem like they are going to give me a conventional mortgage. My credit score has gone down since I have received the loan, My question is can the bank deny me a conventional mortgage and demand the money back from the construction loan?
i would suspect this is an extraordinary action, yet not surprising in this marketplace. things we never have seen before are happening all over the country, as lenders cut back on products and get way more conservative than previously.
as for demanding the money back - i hope that's only an idea in your mind, because it certainly ought not to be something that your lender would even consider.
shop around and see how you make out with other lenders, but i also suggest you press the issue with this construction lender, as they led you down this path (i'm sure) with the intention of granting the permanent mortgage. pulling out is putting you in a bad spot now. of course, credit score going "down" could mean a lot of things, and you didn't elaborate on that. you may be faced with a combination of the score reduction and a more conservative lending attitude.
as for demanding the money back - i hope that's only an idea in your mind, because it certainly ought not to be something that your lender would even consider.
shop around and see how you make out with other lenders, but i also suggest you press the issue with this construction lender, as they led you down this path (i'm sure) with the intention of granting the permanent mortgage. pulling out is putting you in a bad spot now. of course, credit score going "down" could mean a lot of things, and you didn't elaborate on that. you may be faced with a combination of the score reduction and a more conservative lending attitude.