I signed a contract for a new condo in January of 07. I have still not closed. The last truth & lending I signed was for FHA @ 5.5% although I had one for another loan before that at a much higher rate. The builder let their FHA approval expire before closing and now they want to put me in another loan @ 6.5%. Can I brake my contract and not forfeit my downpayment of $16,100?

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Originally Posted by losingpatience

I signed a contract for a new condo in January of 07. I have still not closed. The last truth & lending I signed was for FHA @ 5.5% although I had one for another loan before that at a much higher rate. The builder let their FHA approval expire before closing and now they want to put me in another loan @ 6.5%. Can I brake my contract and not forfeit my downpayment of $16,100?

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I would have to say that nobody can answer this without reading your contract. I would suggest that you read your contract very carefully and if you can't figure it out, then go to a paralegal and pay the price to get the appropriate and correct answer to your question.

The small fee for getting the correct answer is well worth it rather than risk losing the escrow/deposit money.

Kate

Most contracts state that you have to be able to acquire a loan for such and such percentage rate in order for it to be a valid contract does yours say anything about that?