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FHA Loan 4 week wait time?

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Anonymous
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FHA Loan 4 week wait time?

OK so I am going to try and make this story as short as possible.
 
We applied for an FHA loan 4 weeks ago last Friday. We were referred to underwriter because the credit scores were on the lower side Mid being 588. Our last 12 months was spotless on the CR we had 3 30 day lates on the credit report back in Oct 06. One collection from Western Dental which is on a Payment plan and only has 300 left. And the thing that drew up red flags were some high CC balances.
 
Debt to income is fine My fiancee alone makes 3500 a month we have 404 cc minimums a month and we pay 800 in rent which will transfer to mortgage.
 
He has been at the same job for 6 years and has 14,000 in 401 (k) our bank account only has about 2,000
 
Well, 2 weeks later we finally had somone look at it and they wanted the following:
 
more detailed 401(k) along with the terms to get the money if needed.
 
an explanation for a 2,500 deposit
 
an explanantion for a Direct Deposit (which is my pay day)
 
it has now been 2 more weeks I spoke with my lending officer yesterday (who is very nice) and she said that the first week after I submitted the new paperwork it had been marked do not look at since someone thought no one was to look at loans that did not already have a home in line yet (which we could not since we could not obtain a preapproval.) So she got some others involved and cleared that mess up.
 
At first I was ok with getting denied cause i knew we could fix it but that is before the 4 week wait.
 
I checked our credit score yesterday and his mid is now a 623 so she was going to re-run the credit for us.
 
If they were going to deny us for credit I assume theyy would have already done that the first time they looked at it.
 
I am not getting mroe impatient that ever. Anyone have any advice? Or any similar scenarios that turned out well?
Message 1 of 3
2 REPLIES 2
ShanetheMortgageMan
Super Contributor

Re: FHA Loan 4 week wait time?

With a 623 score now instead of a 588 you'd have a better chance of getting the automated approval, which is a streamlined approval process for FHA.
 
The things they asked about are normal - terms which the 401k money can be withdrawn, explanation for a large deposit, and if the direct deposit doesn't say who it was from then often an explanation is needed on that too.
 
However 4 weeks is a very long time... but it depends on the lenders underwriting turntimes.  Some lenders are about 2 weeks out now, but there are still quite a few who have 2-4 business day turntimes.
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 3
DallasLoanGuy
Super Contributor

Re: FHA Loan 4 week wait time?

I agree that 4 weeks is too long.
But if you can provide everything the underwriter wants.... you may be home free soon.
Retired Lender
Message 3 of 3
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