Denied Conventional Loan

[sports1965]

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@Anonymous wrote:

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@ezdriver wrote:

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@neptunejcw wrote:
Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA

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The thread title is about having been denied for a convention loan yet your post is about an FHA loan app?

Sounds to me like you have a knucklehead lender. Find yourself another lender.

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" Even everyone in the office is lost as to why it won't approve me."

^^ This rubs me the wrong way. AUS will always give the reasons for its decision. And if your lender cannot help you problem solve at this point, I'd find a new one.

Regarding conventional vs. FHA, you should always run the numbers (for those giving advice too). Here are the numbers for P&I only (assumed rates):

@Anonymous - $239,927 loan @ 4% w/ .80 MI - $1146

@Conventional - $235,800 @ 4.5% w/ .57 PMI - $1195

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Thats assuming he qualifies for the .57 PMI With a 683 middle score

[Anonymous]

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@sports1965 wrote:

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@Anonymous wrote:

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@ezdriver wrote:

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@neptunejcw wrote:
Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA

---

The thread title is about having been denied for a convention loan yet your post is about an FHA loan app?

Sounds to me like you have a knucklehead lender. Find yourself another lender.

---

" Even everyone in the office is lost as to why it won't approve me."

^^ This rubs me the wrong way. AUS will always give the reasons for its decision. And if your lender cannot help you problem solve at this point, I'd find a new one.

Regarding conventional vs. FHA, you should always run the numbers (for those giving advice too). Here are the numbers for P&I only (assumed rates):

@Anonymous - $239,927 loan @ 4% w/ .80 MI - $1146

@Conventional - $235,800 @ 4.5% w/ .57 PMI - $1195

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Thats assuming he qualifies for the .57 PMI With a 683 middle score

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He will, that's pretty much how it works with PMI companies. There is a chart that matches up LTV with credit score brackets, and that is the PMI rate you get 99.9% of the time.

[ezdriver]

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@Anonymous wrote:

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@ezdriver wrote:

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@neptunejcw wrote:
Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA

---

The thread title is about having been denied for a convention loan yet your post is about an FHA loan app?

Sounds to me like you have a knucklehead lender. Find yourself another lender.

---

" Even everyone in the office is lost as to why it won't approve me."

^^ This rubs me the wrong way. AUS will always give the reasons for its decision. And if your lender cannot help you problem solve at this point, I'd find a new one.

Regarding conventional vs. FHA, you should always run the numbers (for those giving advice too). Here are the numbers for P&I only (assumed rates):

@Anonymous - $239,927 loan @ 4% w/ .80 MI - $1146

@Conventional - $235,800 @ 4.5% w/ .57 PMI - $1195

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Thanks for the reminder but why run numbers if the borrower will not qualify based on their score? As a loan officer, do you run numbers first and then tell the borrower that they don't qualify but, if the did qualify, this is what your payment would have been?

[Anonymous]

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@ezdriver wrote:

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@Anonymous wrote:

---

@ezdriver wrote:

---

@neptunejcw wrote:
Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA

---

The thread title is about having been denied for a convention loan yet your post is about an FHA loan app?

Sounds to me like you have a knucklehead lender. Find yourself another lender.

---

" Even everyone in the office is lost as to why it won't approve me."

^^ This rubs me the wrong way. AUS will always give the reasons for its decision. And if your lender cannot help you problem solve at this point, I'd find a new one.

Regarding conventional vs. FHA, you should always run the numbers (for those giving advice too). Here are the numbers for P&I only (assumed rates):

@Anonymous - $239,927 loan @ 4% w/ .80 MI - $1146

@Conventional - $235,800 @ 4.5% w/ .57 PMI - $1195

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Thanks for the reminder but why run numbers if the borrower will not qualify based on their score? As a loan officer, do you run numbers first and then tell the borrower that they don't qualify but, if the did qualify, this is what your payment would have been?

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I was simply giving an example of running the numbers. I'm pretty sure if my borrower was at 680+, I could either A) problem solve how to get them to qualify for a conventional loan... Or B) at least be able to tell them why they don't based on AUS findings. 

[neptunejcw]

I was told because I have a short credit history & no past rental history is the reason why it turned me down. & From the system opinion I'm getting a pretty sizable mortgage being that I'm a 1st time home buyer. Even though I qualify & have great ratios. So I'm forced to get a FHA & refinance into a conventional after 6months or a year. Even with 15% down they said the system still wouldn't except it which is very odd to me

[Anonymous]

Are your scores Fico 8 or Fico mortgage scores. 

How many lenders did you try? Typically most people only go to 1 and wonder why they are denied.  There are other lenders out there. Don't stop. 

Try: https://www.lendingtree.com/mortgage-loans-index 

You should be accepted, by someone. Accepted (approved) versus except (not including). Just a grammar stickler.