Closed! The Saga unfolds...Financial Aid Disbursement Affect Closing?

[Anonymous]

Hi there, first time poster here with a question I can't seem to find any information on via Google.

My wife and I are scheduled to close on our home Jan 31st. My FHA loan just went to underwriting yesterday. Turn around time is 48 hours so we should hear something early next week.

My concern is every home buying site recommends not opening any additional lines of credit between now and closing. However, since last fall I've been signed up to return to graduate school for an MBA program and my financial aid has been disbursed since we initially applied for the loan. In addition to informing my loan officer of this situation I have provided a letter from my school's financial department stating that my student loans will be eligible for in-school deferment throughout the duration of my program expected to complete in 2017.

Does anyone know what the chances of this impacting my loan are? I haven't been able to find much information online about how picky Colonial underwriters are. Meanwhile I'm walking around with a swarm of butterflies in my stomach.

Thanks for any insight.

Strutte2

[DallasLoanGuy]

this would not concern me or my underwriters one bit.....

nor should it concern very many others.

[Anonymous]

I'm getting ready to close on an FHA loan, I have student loans deffered due to still in school, and I am still getting aid dispursed each semester. The underwriter never asked for anything at all regarding my school status or my loans. I know they are aware of the loans because they show up on my liabilities page of my application. I assumed they would want school letters or something but they never mentioned it at all or requested anything.

[Anonymous]

F/U: I emailed my LO today for an update - said that should have final inspection soon and expecting a final approval later today. Will follow up once I hear back. Thanks for the responses.

Strutte2

[tooleman694]

As long as they are in deferment its fine.

But if this was conventional, it would have an impact on your DTI.

[Anonymous]

I was more concerned because I just started going back to school and had been previously paying on my student loans, which are now deferred due to the in school status if my graduate program. I prequalified with the DTI of my current student loan payments but I didn't know how they would respond to the additional student loans. Like I said, I provided a letter from the school that my previous and current student loans would be deferred for more than a year but I've seen mixed feedback on whether underwriters will accept this type of documentation or not.

[tooleman694]

FHA loans wont count them into the DTI. So if you provided the letter they probably just took them out.

[Anonymous]

Man, they're really dragging their feet on this one. Was told by the LO that this went to underwriting last Friday with a 48 hour turnaround time. Monday and Tuesday come and go with no update. I email them on Wednesday and he tells me the appraiser was going back out to check the repairs. Today I call again and was told that the appraisal passed inspection and that information has been provided to the underwriter and once again we're waiting on final approval.

I feel like I'm getting a bit of the run around here. We're scheduled to close 01/31 and I'm wondering if I should use lending tree to check into back up sources of financing.

[JM-AM]

If repairs needed to be done they have to confirm them.

Once confirmed paperwork resubmitted from appraiser.

You should hear something shortly.

[Anonymous]

I certainly hope so. We've already had to sign an addenum once to extend our option period if financing isn't approved and today is the deadline for that extension. If there's something holding up the UW process I'd like to hear it so I can provide whatever documentation they need. I'm worried this is a situation where we've been denied and they're hemhawing around the issue until the letter shows up in the mail. Ugh.