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FHA loan worthiness question

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Momo0476
New Member

FHA loan worthiness question

First off, hello. My friends keep telling me to visit the site and I finally did a few weeks ago.

 

Now on to my question Smiley Wink

 

My husband and I applied for a FHA loan late Feburary 2013 / early March 2013. Since then my husband has been going crazy worrying over if we'll get the loan or not.

 

My husband is the primary borrower and makes 70,000.00 a year. Has has 3 credit cards with low utlization and has no late payments for the past 12 months. He does have a 30 day late prior to that but has none before that 30 day.

I make 30,000.00 a year and would be the co-borrower. I have 2 credit cards, 1 is a sears card and the other is a GE Care Card for medical. Sadly I picked up a 30 day late back in 4/2012 but since then and prior to that I've had no lates.

 

We have a car payment where we were late back in 2011 and nothing since then. Our DTI is very low combined and even without me on the loan his DTI is still very low, he could get the loan on his own actually.


We both have a 640+ score and we are working to make it even better. My question however is regarding my 30 day late back in 4/2012. I know my husband mentioned that the company doing the lending stated they only go 12 months back. BUt is that 12 months back when they underwrite or 12 months according to the credit pull? I know this is probably late and I should have written a GW to GE about the 30 day late but honestly I didn't think it would matter and we are actually pushing for the loan now sine the house we looked at is on the market and with our downpayment our loan is only 153,000.00. We have 11-12k in assests plus the closing costs are being covered by the seller.


We were pre-approved and already put the money down on the house, paid for the apprasial and inspection and now the loan is underwriting where they've asking everything under the sun. House actually came back 7,000 more on the appraisial.

 

Husband: 3 credit cards, no late payments in exactly 12 months. 1 car payment no lates in 12 months shared with wife. Has a home equlity loan open which is getting paid next week, has a late on it back on 1/2012 but that is 13/14 months back and was the fault of the bank (PNC and it's retarded web payment system) DTI: 20/31 with proposed mortgage, 0/12 without, 14/23 combined mortgage

Me: 2 credit cards, (1) 30 day late payment (april 2012)  1 car payment no lates in 12 months shared with hushand. DTI: 0/18 without proposed mortgage, 14/23 combined with mortgage.

Combined gross income: 90,000.00+ (husband works overtime and gets bonuses)

 

What do you think our chances are and do they even look at the lates for a co-borrower?

Message 1 of 8
7 REPLIES 7
foofighter74
Established Contributor

Re: FHA loan worthiness question


@Momo0476 wrote:

 

What do you think our chances are and do they even look at the lates for a co-borrower?


Yes, they look at it.  My guess...and this is based on what i've read from other experiences as i am not in the mortgage industry is that since this is April, and you're a year out from that late this month, you may not be able to close until the day after that late payment ages a year...or possibly May 1st.

Again, that's just a guess...perhaps when they figure out when you might close, that would be more than a year after that last late payment.  Also, that seems to be a medical care card...and I know that medical bills may be treated a little differently.  Perhaps you'll need a LOE to take care of the late, but I dont' think that one late will hold you back.

 

We are talking about a $153,000 loan on an income of $100,000.  You can easily afford the place, you have down payment money, and your credit scores apparently qualify. 

 

 

Message 2 of 8
boomhower
Valued Contributor

Re: FHA loan worthiness question

You should be fine.  As mentioned worst case scenerio you have to wait until the late is a year old. 

Message 3 of 8
Momo0476
New Member

Re: FHA loan worthiness question

We're supposed to goto settelement at the end of April 2013, so it would be 1 year. But at the same time as mentioned it is a medical card and not a credit card, so I don't know how those are handled.

Message 4 of 8
foofighter74
Established Contributor

Re: FHA loan worthiness question

I think you can tell your husband to stop going crazy!

Message 5 of 8
Momo0476
New Member

Re: FHA loan worthiness question

HA, fat chance on that. He's been stressed out since day 1. I can understand that since he wants to get us out from where we are but man, he's really stressed the heck out and is scared that we won't get the loan.

 

I mean REALLY stressed!

Message 6 of 8
foofighter74
Established Contributor

Re: FHA loan worthiness question

What kinds of things has the underwriter asked for thus far?

Message 7 of 8
Momo0476
New Member

Re: FHA loan worthiness question

Verification of assets. This one bothers me cause first theUW asked to see the assests (6500.00) then asked to see more (11,000).

W-2's for 2011 even though we gave them the W-2's already.

Copy of the earnest money check and proof that it cleared.

LOE regarding dispute on home equlity. Basically we paid it in time but we still got marked for late so we disputed... and lost.

Proof that the equlity will be closed prior to closing. Talked to the processor and they want it closed, no big deal as we were going to pay that off this week / next week.

LOE regarding delinquency on home equlity. Hasn't been late in 12 months (last late was 1/2012) but I suppose they want an explanation.

Copy of Insurance

Drivers License for both of us

FHA lender docs

4506T signed and returned

Employment verification

Extra seller addendum. Seller is slow to sign docs needed by lender.

Message 8 of 8
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