Hello everyone - I hope someone can help me here. My problem is this: My husband and I made an offer on a triple-wide, it was accepted by the buyer. We went to get the loan and were going to get an 80/20 conventional because we don't have much to put down. Everything was great until the appraisal came back and they said that they couldn't do an 80/20 conventional because it was a manufactured home. The loan company wants to roll it into a FHA loan that will have more fees and we will then have pmi or mi until the loan reaches 78%. I told them when we asked for a preapproval that it was a triplewide. Had I know before hand that we would have to pay some many fees and the loan amount would be bigger, I would not have made the offer in the first place. Can I get out of the real estate contract without getting sued?

Thanks,
Mudstonemagic.

Do you have a written contract for purchase? If so, check for a contingency clause regarding mortgage approval. I am assuming that the mortgage company sent you a letter rejecting you based upon the appraisal. If not, you need to ask them to put their rejection in writing and to include their alternate suggestion on how they can handle it.

If there is nothing in writing, it becomes problematic. Do you have a real estate agent? What kind of purchase agreement do you have? Verbal? Please give more detail. Depending on your answer, there is a legal expert here named LisaB4657 who knows more about legal issues than I do and might be able to help you.

Ruby's right. Check your contract for a financing contingency clause. This is where it says that the agreement is conditioned on you getting financing for the purchase. As long as you have one of those clauses you should be able to get out of the deal and get back all of your money after you show the seller a letter from the lender that you don't qualify for the loan.

If you don't have a financing contingency in your contract then you may have a problem getting out of the deal without losing money. In that case I suggest that you speak to an attorney. Many attorneys offer a free consultation during which they can tell you about your options.