FHA loan standing..... still sweating bullets

[kdmitchell27]

Just a bit of info;

Been going over info regarding my pending loan app and I have a few questions. mainly about tradelines. I can't find an exact answer for this; how many tradelines are required for an FHA? Also I know your dti plays a big part in the process but what about late payments (I've been late once per year, except  2012-2013).

My dti is 20/30 with the house otherwise its 0/10. Combined with the wife our dti is 0/9.  Bothe our credit scores are over 640, otherwise we couldn't have applied (going with Citimortgage) and combined we have an annual gross income of $97,000+. I say plus cause my base pay is $70.000 but we get bonuses and overtime which from what I'm seeing I'll end up doing $80,000 this year.

I do have several lates on my open accounts but nothing more than 30 days and nothing late more than once a year.

Credit cards: One card i've had since 2007, I've been 30 days late on it once in 2012 and once in 2011. Another credit card opened in 2012 I've never been late. Lastly I have another CC I opned in 2012 that has never been late as well.

Car Loan: Opened in 2010, late once in 2011, never late since then. The wife and I are on this loan.

PNC equlity: Opened in 2005, late 1/2012 due to a fault in their system,  late in 9/2011, late in 8/2010 and late in 2009.

The wife has a GE card card she was late on in 4/2012, a Cap One card she's never been late on, a Chase card she was never late on but they closed it on her at the end of 2012 cause she didn't use it enough.

Mortgage company requested an LOE for the PNC for the late payment (which I gave them the entire history but not sure if I should have), a LOE stating the loan would be paid off prior to settlement (wasn't due to be paid off until 5/2013 but we only owe 1600 so we're going to pay it off now) and a dispute I filed with PNC (Cause they took my money from the account but still marked my payment late) which I replied already.

Wondering what my chances are here on the FHA mortgage.

[JM-AM]

You have a good chance.

[boomhower]

You have a good shot but it may be a bumpy ride.  Any lates with the previous 12 months may be an issue.  Have good LOE's ready.  Good luck!  Don't be afraid to shop other lenders.  In fact I would encourage you to do so.  It's the biggest purchase you will ever make, I'd get GFE's from at least three lenders. 

[kdmitchell27]

What's an example of a good LOE? And that's good regarding the 12 months since all the lates are 13 months more. None in 2013 and if it was late it was early 2012 (Jan / Feb).

[boomhower]

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@kdmitchell27 wrote:

What's an example of a good LOE?

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Essentially you want to explain why it happened and what you have done to preven it from ever happening again.  Having more than one late makes this a bit more difficult.  You want to make the underwriter feel completely comfortable you are going to be able to pay on time every time.  On top of that they need to be comfortable you won't default on any other debt to could lead to a lien on the house.

[kdmitchell27]

OK, I've done that already, so my LOE should be ok. AS for shopping around, we've been in lock with this lender since Feb and the settlement is April 29th. I don't want to do anything that would screw that up and at the same time I really don't want more hard credit pulls to drop our credit scores. This has been the single most nerve wrecking experience todate and I wish it was already over... for the postive.

[kdmitchell27]

Called my LO this morning. Stated that they want 12 months with no lates, which we just made it under since out last late was Jan 2012.

[kdmitchell27]

So I talked to the loan officer and processor on Friday and found out they had more conditions which I submitted back on the same day. The processor said she was going to send it back to UW and give me an update on Monday.

Problem is as of today we are 2 weeks away from close date and while I've done everything they asked and submitted all my paper work, is it usually this long complicated process?

Just wishing I had a little more reassurance as to what is going on. The stress is killing me.

[kdmitchell27]

Forgot to mention we have had 3 rounds of conditions so far and oddly enough on of my conditions regarding my assets was removed. Wifes 30 day late was never mentioned either.