120 day late on conventional mortgage 16 months ago doesn't mean I dont qualify fha?

[Laxflava]

And M.O.P. Is manner of payment.

[Anonymous]

Yes it was FHA with quicken. Everyone else like OneWest, Credit Union, Wells Fargo, and Chase kept sticking us in conventional even though we requested FHA. They would say they only had to go back 12 months and then one at a time came back saying denied due to bankruptcy from Oct. 2004, delinquent past or present obligations with others (only thing I see delinquent on credit report is the 120-day late mortgage) and unable to meet conventional program guidelines. Spoke back to BOA and they say it would be the same with FHA.

Are you suggesting that if they reported trial modification on the credit reports that would be trouble? Currently they do not but I don't know how they will report after the goodwill attempt number two. What is D.U., Desktop underwriter? If so BOA said it passed with flying colors initially on the DU.

[Laxflava]

Wow, thank you for replying. How crazy is that? The credit union said no. But im guessing that conventional. I have no doubt that we camt get a conventional loan. But the reasoning for fha decline perplexes me. I've worked for three mortgage companies and I understand a few things. Mortgages are mostly mandated by Freddie Mac, Fannie Mae and Freddie MAC. Further, a lll three have rules for setting up a mortgage. I read the 5-7 year clause in fannie or Freddie ( forget which one). I also read if you foreclose or become delinquent on FHA loan, you can't get FHA loan. Fha's guidelines seem clear. No mention of freddie or fannie. But my issue is that I was never default/late. I have not given up. Was you 120+ on a FHA loan?

Yes DU = desktop underwriter. I was suggesting the human underwriter is king.

[Laxflava]

Also, I'm working with Shane right now. I really like him. He even forwarded my request to the underwriter. Curious we seem to be in same situation. Is your current loan FHA?

[Anonymous]

Yes, the credit union was also conventional. Our 120-day late was on a Fannie Mae. Maybe they are denying harder because we were seeking cash out to consolidate debt and to shorten the mortgage term from 30 years to 15. In three years, we will not have a car loan and will be ok. But right now, my hair is standing up on my head trying to deal with one income. I cannot seem to get anything steady here since 2009 and three years is feeling like forever.

I hope things work out for you.

We've been current for about 17 months now.

[Anonymous]

We went ahead and applied with a local bank that offered FHA loans. I begged the loan officer to take the file to an underwriter before appraisal is ordered. The officer stated over and over I've ran your file through the system twice with a month in between and it says you meet all qualifications. You just have to make appraisal, which is the same thing that BOA said but I still fear the underwriter lol.

At any rate, here is what a loan office at SunTrust Mortgage sent to me today. The loan officer said, "FHA loans don't allow a 120 day late. One 30-day late is allowed. 60-day late within one year is not eligible for refinance.

So who the hay really knows. All I know is I will be so glad once the car note is gone because we will go full force to join the debt free gang otherwise, I'll be meeting my maker early.

[Laxflava]

Wow, you went to the bank after this post and the underwriter said you didn't qualify? I'm so sorry.

[Anonymous]

Nothing from underwriter yet. I asked the loan officer about the 120-day thing and they just repeated you all qualify. Waiting on call from appraiser.

[Laxflava]

Oh let me know how it turns out Mod cut. We can compare notes.

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Hi Laxflava,

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[Anonymous]

Spreading some great news before getting back to my daily grind.

Heard from loan officer today (local lender) and we are ready for closing on FHA loan. The house appraised for more than what was needed (small loan) and the loan was fully approved from underwriter.

Thanks for all help and suggestions Shane and others.

So happy! Now the challenge phase 2 begins - pay off house in 15 years instead of 30.