Did you sign a contract conditional on financing? If so, then if you can't afford that home or get financing for it, then the builder must return your earnest money.

Honestly, this was not the wisest thing for you to do. The reason is prices have fallen and now they are probably selling other homes in that area for much cheaper than what you paid when you contracted.

Given your work situation, if you can't qualify for anything BUT a 30 year fixed, you shouldn't buy the home. This is NOT the time to do any creative financing.

Thanks for your input. I have read and re-read the contract but all I can find is it is the buyers responsibility to obtain financing. I also saw that our option money would not be returned :(

I have looked around and none of the prices have dropped in the slightest. It is a brand new master planned community and none of the houses by any of the builders are being lived in yet.

It just hurts to walk away from 20+ thousand dollars and the house that I love!!! Before summer we had no problem affording it but now that there are no loans I really dont have much choice.

Thanks again

I wouldn't buy a house with 5% or less down in this market.

I hate to add more fuel with another question but since you are asking for input...

Have you hired an attorney to represent you in the legal aspect of this? If so, what does he/she say are the options?

If not, perhaps you might want to consider that?

It's always cheaper to protect yourself than defend yourself.

What state are you in? I'm curious where houses are that price and wonder if the builder could have another community that is cheaper, most do where I live. We stopped in one that was close to $500k and up, then ended up finding that same builder in the town we ended up buying in, selling from the mid $200k.

We need to move before December as we will no longer fit in the house we are currently renting.

I've known lots of people that lived in a one bedroom or studio apt with a baby. Having 2 kids myself, I can't begin to tell you how expensive kids are. Diapers and formula alone in the 1st year can break someone. You then add clothing (they grow so fast that they need new clothes every few months), doctor visits. If the baby gets ear infections like both of my kids did when teething, now you're looking at medication. When they start eating "food" there are more things to buy, baby cereal, jarred food. If you will work, child care. If you were lucky to get a crib, stroller, car seat at a baby shower, you won't have to buy these things but if you didn't, they aren't cheap.

Hopefully you have a financing contingency. You really should find a real estate attorney to read the contract, it may be the best few hundred you spent, especially if they find an out.

Congrats on the baby. Even though he or she wasn't planned, you'll find a way to do what you need to do to make it work. My son's friends had a little boy (unplanned) after Christmas; and have been the best parents. They were able to move out of their tiny one bedroom rented house into a larger 2 bedroom rented house by taking on a room mate. I gave them a gift certificate to Walmart in the amount of a stroller; they ended up finding one in a second hand shop and used the gift certificate for other things he needed.

From your user name I'm assuming you are in Las Vegas. This is one of the worst RE markets in the nation right now. It boomed big and is failing big.

Get thee to a RE attorney to find out exactly what your purchase contract says. I'd try to get out of it. Why would you buy a home at last years price that will be worth less as soon as you move in? This just makes sense. You may lose your deposit ($7500) but I don't see where you'd lose $20K as you mentioned.

This is not a good time to "Buy at Last Year's Prices". Not good for anyone, but especially not wise in your situation with a drop in income and new baby. Talk to an attorney and to a realtor. There are tons of houses on the market in Vegas now. Buy something you can afford for now. It won't be your last house!

From your user name I'm assuming you are in Las Vegas. This is one of the worst RE markets in the nation right now. It boomed big and is failing big.

It's what I think/thought too, but figured I would ask just in case. Could be that they got married in Vegas but don't live there.

Your chances of securing a jumbo loan are remote...and even if you can get financing successfully I would simply walk away from the deal if it is vegas market.

See if somehow you can get your deposit back. Consult an attorny for the same. It is better to lose 7.5k right now then take a 15-30% haircut in the coming 2-3 years in vegas.

Thanks all! Yes I am in Las Vegas.

A little more info, I found this model at an existing community where the base price is 600K plus you have to pay for the lot. The area that I purchased in is not yet lived in and out about 10 more miles hence the BIG difference in base prices (429K vs 600K) That is why I waited until March for the new community.

I put a 7500.00 deposit down and then had to pay 50% of my cabinets 7K, appliance upgrade 2K, and put an additional 4K in for my stair rails. That is where I am coming up with walking away from 20K.

I will take your advice and hire a real estate lawyer. If they are not able to find affordable financing I am not going to strap us with an outrageous payment.

It isn't the builders fault that you cant afford the house anymore.

If I were you I wouldn't make waves and ask a lawyer how to get you out of this contract with the least damage. They exact wording on the contract will say if you eat more than $20,000

Think about it, the builder got permits, broke ground, got sewer and water in, did the foundation. Because you were at picking cabinets and stair railings I bet framing was done too. The builder paid the other 50% for the cabinets you picked and paid for your stair railings and flooring and drywall, and roof and siding and windows.

It isn't the builders fault that you can't afford the house anymore but he is into your house for a lot more $$$$ than you are.

Hire a really good RE attorney and hope for the best.

It isn't the builders fault that you can't afford the house anymore but he is into your house for a lot more $$$$ than you are ~~~ First off I never blamed the builder. My post was to inquire about the possibility of finding financing after the bottom fell through in the lending industry for the specific products we wanted to use. I hate to walk away from this house but I cannot see financing happening. We live and work in Las Vegas. My spouse and I work solely on tips (as do most of the residents here) if the stated income programs are taken away how in the world should I be liable for that? I have every cent documented through bank statements but to my knowledge those programs are now in the trash as well. I guess I really dont understand your digs about us picking out our cabinets and buying stair rails. I never said that we could not afford the house but if the rates climb to 10% as I see on some of the websites that could be a possiblity. Thanks for your input.

I don't think what gammy wrote were necessarily digs, but honest feedback. Ultimately you and your SO had a responsibility to understand the contract into which you entered. Because you didn't understand it, your builder went to the expense of breaking ground and ordering your specialty items. The fact you don't know if the contract is conditional on financing means you weren't adequately informed enough to be buying a house, let alone entering into a contract to build one.

That's not a dig, but a suggestion for you to do your homework before you enter into such an important investment. It is imperitive you understand the contract and put clauses in there to protect yourself aka conditional on financing. Get thee to a lawyer to see what options you have to get out of the contract.

Did they break ground yet?

It is my understanding that you sign contracts, the builder puts it to attorney review which usually takes 2 weeks here. During this time, you go to the design center to pick the upgrades and while picking them, may have to put money down on them so that they can be ordered.

I'm seeing a bunch of builders, KB Homes, Pulte, American West, Richmond, Summerlin, DRHorton, Lennar, Toll Brothers, Beazer, Engle, Centex with pricing jumping all over the place. Looking at those sites, some start off cheaper. It may be possible that they will move you to another cheaper location so that they don't lose you as a client and you don't lose your money. If they have not poured foundation or broken ground, it's possible they will change the model to a cheaper one if there is a cheaper one.

I don't think all is lost. One never knows, depending on how far along this is. We just put a bid in on a house that the original people changed their minds by deciding to build on another lot. The house had granite in the kitchen, a faucet that was over $2,000 as well as things we didn't need. We were able to take some things out even though the sales lady wasn't sure if we could. We then figured out what the house was worth to us and placed a bid which was accepted.

They may have pulled permits or poured foundation but also may be able to sell the house to someone else. There's another property that we were offered that we passed on. Last week it was being framed but still not sold. They are called quick move in homes and usually sell.

Builders are hurting. Look at K. Hov's sale this weekend. While you may still qualify for a loan, you may not qualify for as much. They very well may work with you, so you should prepare for that. Getting into a community farther away with a less expensive base may be the only way you don't lose it all.

I don't think that it is a good idea to take out a mortgage based upon both of your current incomes while you are expecting a baby. I know that you think that you will be able to sustain your current income after the baby is born, but too many people have found themselves straddled with a huge mortgage and find what they really want to do is spend time with their baby.