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Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012

Denied on FHA today (4/30/12)...****UPDATE CLOSING TODAY 6/11/13!!****

[ Edited ]

My wife (654 credit) and myself (634 credit) were denied an FHA loan today.  We had a few 60 day late's back in December of '11.  The reason for the denial was due to the late payments on a student loan and C.C.  and not because of our income.  We have no late mortgage payments in over a year, but like I said, we have late payments less than a year old on other things, but of those items that were paid late, they are now paid off as agreed.  No buyoffs.  Currently our debt is as follows:

 

-Mortgage $1320/month $140,000 balance

-Car $225/month $4500 balance

-Car $300/month $12,000 balance

-Student Loan $150/month $30,000 balance

-Credit card $58/month $2000 balance  (plan on paying off in July)

-Personal Loan $116/month $650 balance (plan on paying off in July)

 

Total monthly debts- $2170

Total monthly income $12,750

 

Debt to income ratio 17%

 

Even if I add our new mortgage of $2000/month we would be at 32% Debt to income level.  We would be replacing the $1320 mortgage with the $2000 one, if we got approved.

 

Considering all the info listed, when can we re-apply and get approved?

 

This is very disheartening.....so upset over this...

 


Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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Valued Contributor
rckstrscott
Posts: 2,659
Registered: ‎04-25-2011

Re: Denied on FHA today...when to re-apply again?


ccubedzx3 wrote:

My wife (654 credit) and myself (634 credit) were denied an FHA loan today.  We had a few 60 day late's back in December of '11.  The reason for the denial was due to the late payments on a student loan and C.C.  and not because of our income.  We have no late mortgage payments in over a year, but like I said, we have late payments less than a year old on other things, but of those items that were paid late, they are now paid off as agreed.  No buyoffs.  Currently our debt is as follows:

 

-Mortgage $1320/month $140,000 balance

-Car $225/month $4500 balance

-Car $300/month $12,000 balance

-Student Loan $150/month $30,000 balance

-Credit card $58/month $2000 balance  (plan on paying off in July)

-Personal Loan $116/month $650 balance (plan on paying off in July)

 

Total monthly debts- $2170

Total monthly income $12,750

 

Debt to income ratio 17%

 

Even if I add our new mortgage of $2000/month we would be at 32% Debt to income level.  We would be replacing the $1320 mortgage with the $2000 one, if we got approved.

 

Considering all the info listed, when can we re-apply and get approved?

 

This is very disheartening.....so upset over this...

 


For FHA, from my understand and how it was explained to me, is your late payments or negative info needs to be a year old or greater.. when I was going through the process, I had a collection account (which was subsequently deleted) that appeared as a new collection on Dec 2011 and my LO indicated I wouldn't quailfy without getting it deleted until Jan 2013.

 

My guess is you will not be able to qualify until your lates are a year old, regardless of income.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Established Contributor
kjm79
Posts: 1,008
Registered: ‎01-22-2008

Re: Denied on FHA today...when to re-apply again?

Yep.  No lates within the last year.  Everything else looked good.  See if you can gw the lates and then maybe you can app sooner.  If not, it gives you more time and maybe you can know off the smaller auto loan in the next year.  Your dti is good, but every little bit helps.  Or save up for more of a down payment. Sorry the bad news though, that stinks. 


Starting Score: TU? EQ 585 EX? (12/06) (CH 7 bk 11/04)
Current Score: (5/12) TU 699 (myFICO) TU 709 (WalMart) EQ 690 EX 686 (CC denial 7/11)
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Regular Contributor
How2increase
Posts: 200
Registered: ‎03-02-2012

Re: Denied on FHA today...when to re-apply again?

Oh no!!! That is so disappointing! Makes me nervous, I'm applying for a mortgage in a few months and my last late was in dec.2011. I contacted first guaranty mortgage and a LO there said only late payments within the last 6 months will automatically get you a denial. What lender did you apply with? Not even conditions? Just a flat out NO?
Jan 2012 TU 517 EX(fako) 524 EQ 470
Current score LENDER PULL TU 652 EX 641 EQ 617
Yayy we made it!!!
Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011

Re: Denied on FHA today...when to re-apply again?


How2increase wrote:
Oh no!!! That is so disappointing! Makes me nervous, I'm applying for a mortgage in a few months and my last late was in dec.2011. I contacted first guaranty mortgage and a LO there said only late payments within the last 6 months will automatically get you a denial. What lender did you apply with? Not even conditions? Just a flat out NO?

This is a sign that you should not get a loan from that person.  FHA mandates 12 months of clean credit, regardless of who you get the loan from.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Regular Contributor
How2increase
Posts: 200
Registered: ‎03-02-2012

Re: Denied on FHA today...when to re-apply again?

Yea when the LO told me that I found it kind of odd but I was hoping what she was saying was true. What if you write LOE?
Jan 2012 TU 517 EX(fako) 524 EQ 470
Current score LENDER PULL TU 652 EX 641 EQ 617
Yayy we made it!!!
Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011

Re: Denied on FHA today...when to re-apply again?

No LOE is going to change FHA guidelines.  You either PFD or GW or wait it out.  Six more months isn't that long, just gives you more time to get scores up and save.  You can easily google the FHA guidelines and see if this is the only thing holding you back.

 

LO's talk ___ all the time to get you in the door.  They say crazy things.  

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Established Member
SassyGirl5401
Posts: 18
Registered: ‎04-24-2008

Re: Denied on FHA today...when to re-apply again?

[ Edited ]
I'm so sorry to hear about your denial :smileysad:

While the information in this thread is great to know, it has me incredibly nervous now about getting denied. My husband has a recent late on his credit. Looks like I'll be getting in touch with our loan officer tomorrow to see what our options are.
Contributor
GoingTo800
Posts: 91
Registered: ‎01-24-2012

Re: Denied on FHA today...when to re-apply again?

Fha isn't the only loan program, ever consider trying a conventional mortgage?
Equifax Feb 2012 690
TU Feb 2012 720
Valued Contributor
rckstrscott
Posts: 2,659
Registered: ‎04-25-2011

Re: Denied on FHA today...when to re-apply again?


Booner72 wrote:

How2increase wrote:
Oh no!!! That is so disappointing! Makes me nervous, I'm applying for a mortgage in a few months and my last late was in dec.2011. I contacted first guaranty mortgage and a LO there said only late payments within the last 6 months will automatically get you a denial. What lender did you apply with? Not even conditions? Just a flat out NO?

This is a sign that you should not get a loan from that person.  FHA mandates 12 months of clean credit, regardless of who you get the loan from.


Just to throw this out there.. if the late payment is Dec 2011, and the poster was planning on apping in 'a couple months' -- the late payment has to be older than a year.. maybe the LO wasn't talking out of his/her rear.. maybe they just planned on, I dunno, an October app? Who knows

 

I do agree though, all LO should know the guidlines..

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX

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