FHA refinance

[Anonymous]

I am currently working with quicken loans on refinancing my current FHA mortgage into an FHA streamline. I have good credit, scored around 725-740. I provided my loan officer with all my documentation including paystubs and last two years W2. I made 82,000 last year and 76,0000 in those years. Now quicken loans is trying to say i only make 50,000 per year as that is what my company reported as my income. I have been at this company for 13 years and have never made less than 60,000 with my overtime, bonuses, profit sharing, etc. But i am being told my closing is in doubt because my debt to income ratio is tol high based on the 50,000 they reported. Can they really base my income off 50,000 even though i have provided all documentation showing i make a lot more? I have also never missed a payment or even been late on my current FHA mortgage for 6 years. I am really confused about this. Anyone have any thoughts on what i can do or am i just out of luck?

[Anonymous]

Since you have been on your job for more than 2 years they should be able to use your overtime and bonus income.  It sounds like they aren't using it right now.  Did you get an appraisal done even though you don't have to?  Income really shouldn't be to big of a deal with a streamline.  Let me know if you need any help.  I would be happy to dig into your situation further to see if I can help you out.

[Anonymous]

I talked to my loan officer and he says they can't "anticipate income" with overtime or anything else. It just really stinks because i chose them over two other lenders because they said everything looked good and their rate was lowest. Now i am not sure what's gonna happen and i really do not want to start the process over again. No they did not require me to have an appraisal. Any help you can offer would be great. At this point i just feel like they are jerking me around.

[Anonymous]

The way I have always done it is averaged your last 2 years overtime and bonus income and used that number.  The problem could be though on the verification of employment form.  Your employer would have had to check the box that says overtime and bonus pay is likely to continue.  If they said yes then it should be no problem to use it.

[Anonymous]

That i am not sure of. My bonus is guaranteed every week. Which i showed on all my pay stubs. Overtime goes up and down but its always available. I do not know what formula they are using either. It's pretty frustrating. I guess i will just wait and see what happens. My rate lock expires on the 18th so i figure i will know something by then.

[Anonymous]

Worst case scenario there is always a "non-credit qualifying" FHA streamline that doesn't factor income, assets, or debts. Rate is usually 1/8%-1/4% higher, but it may be better than nothing if they wont budge on your DTI.