Well, our mortgage broker completely dropped the ball on our deal, now we're 15 days from closing with no committment and he's lied to us repeatedly, told my husband that the file had already been sent to USDA underwriting when it really hadn't been and still hasn't been sent.Turns out the company he works for has been sued by USDA and forced to pay on bad mortgages they wrote, so, I bet they can't use the GUS underwriting system. Something I wish he would've disclosed early on.
The good thing is his scores are all over 700, no collections, no lates. Credit card utility is currently showing about 36%, but, only owes $1400.00. I'm ready to just take another $1000 from savings and get him under the 10% mark if we're going to be apping somewhere else.
I'm not on the mortgage because of my low scores, and lack of any real income (part time summer work/ full time student). I did own a house before, but my husband was never on the title nor was he on the mortgage because when I purchased it he was still living in Canada.
Cash available to close at the moment is about $3000, seller is contributing $2400 and we already have $1000 down and prepaid the appraisal.
Ratios with current estimated payment including escrow account would be 27% front end 39% backend.
Potential setbacks include: More than 30 day gap in employment in last 2 years, he was laid off seasonally each summer and collected unemployment. Finally decided he was tired of getting laid off annually and started working for another company 5 months ago. He's a welder and has worked as a welder for approximately 7 years excluding gaps. Hourly rate is $1.00 less than last employer, but, he actually gets his 40 hours instead of getting cut to 32 on a regular basis.
Purchase price is $80,000 but house appraised at $82,000. Seller has agreed to contribute 3%. House is located in Florida.
Unfortunately I doubt that the seller will do to many extensions.
