bonzai12 asked:
I signed a contract to build a house, this is a no contingency contract. The builder has an in house mortgage company and they were going to finance the new home. I have a truth in lending statement from them but here lies the problem. This home was going to be a VA Loan however; my current home is a VA Loan and I am not able to have 2 VA Loans. My existing home has been on the market just a few weeks after the sales agreement was signed, but it hasn’t sold. The builder is now saying I need to refinance out of my existing VA Loan and get a FHA Loan so I can release the VA eligibility and apply it to the new home. They discovered I had an existing VA Loan 2 weeks ago. The closing is in 3 weeks. The home is 95% finished. They are saying since this is a no contingency agreement I need to do everything I can to close this house. I am not even worried about the earnest money, I just don’t any litigation to come out of this. Also, I don’t have a whole lot of equity in my existing home for the refinance. I am in talks with a lawyer know. This isn’t about buyers remorse, it is about not being able to get financing. One more thing, how can a company build a house without a commitment letter from a mortgage lender? Thanks for any help.