So upset- I put in my mortgage app 4/11 and it has been in underwriting this whole time and apparently effective 4/21/14 NEW FHA guidelines have taken effect where if you need manual underwriting they take into consideration your Residual Income -same as the VA loans apparently - you need to have a cerain amount of money left over after all taxes, mortgage payments, and other household bills- for my family size i would need $888 that they want me to have left over. I am doing the loan on my own as my hubby is unable to be on the loan with me- yet they are counting my husband as part of the household- making us a family of 4 yet his income is not counted in the loan and it just WONT work. The dilemma with underwriting is that i passed a automated underwriting with an approval but the underwriter has the "authority" to downgrade it to manual underwriting i guess (Midscore of 630) only debt is car payment and 3 tiny ccs that are all paid in full- i have 2 unpaid meds from 3.5 years ago and a unpaid cc from 7.5 years ago falling off in 2 months - apparently he wants to consider residual income- which there is no way possible i would qualify- my LO is advocating for me and went to the u/w manager and now its been escalated further- something that usually takes less a few days is pushing almost 2 weeks and i just cant take this uncertainty and stress.. i am not confident in my "credit" as i have had bad credit since 18 and now at 28 spent the last two years fixing it and im just all nerves and wish they would just deny it or approve it already. the approval would only last 90 days and i havent seriously even looked as im afraid of finding something and being disappointed 
ughh this is tooo stressful for me - what if they approve me and i have issues with the next steps like finding a home, appraisal and all the other stuff i havent even considered because i couldnt get past the credit part and i go past the "90" days that the approval is good for- will i then have to start ALL OVER??? any insight would be helpful
I feel like this thread is home and the mortgage thread i never get responses so hopefully one of you can assist or drop some knowledge 
So upset- I put in my mortgage app 4/11 and it has been in underwriting this whole time and apparently effective 4/21/14 NEW FHA guidelines have taken effect where if you need manual underwriting they take into consideration your Residual Income -same as the VA loans apparently - you need to have a cerain amount of money left over after all taxes, mortgage payments, and other household bills- for my family size i would need $888 that they want me to have left over. I am doing the loan on my own as my hubby is unable to be on the loan with me- yet they are counting my husband as part of the household- making us a family of 4 yet his income is not counted in the loan and it just WONT work. The dilemma with underwriting is that i passed a automated underwriting with an approval but the underwriter has the "authority" to downgrade it to manual underwriting i guess (Midscore of 630) only debt is car payment and 3 tiny ccs that are all paid in full- i have 2 unpaid meds from 3.5 years ago and a unpaid cc from 7.5 years ago falling off in 2 months - apparently he wants to consider residual income- which there is no way possible i would qualify- my LO is advocating for me and went to the u/w manager and now its been escalated further- something that usually takes less a few days is pushing almost 2 weeks and i just cant take this uncertainty and stress.. i am not confident in my "credit" as i have had bad credit since 18 and now at 28 spent the last two years fixing it and im just all nerves and wish they would just deny it or approve it already. the approval would only last 90 days and i havent seriously even looked as im afraid of finding something and being disappointed 
ughh this is tooo stressful for me - what if they approve me and i have issues with the next steps like finding a home, appraisal and all the other stuff i havent even considered because i couldnt get past the credit part and i go past the "90" days that the approval is good for- will i then have to start ALL OVER??? any insight would be helpful
OP,
Inmerged your threads together. Your thread is best served in mortgage lending.
If you have the funds to pay off those medical bills Google search the HIPAA Process and contact its creator, we cant discuss it on this board. The CO about to fall off call the CRAs and ask it be removed early.
Now they wont exclude your husband he is part of your family and if he was not working he would still be part of your family..... If you cant get into a contract in 90 days you will have to go thru this all over again but it may be to your advantage anyway... Personally I would not have apped until all the negs were taken care of as you are going to have to satisfy them to close....
Thanks Shane- i had 2 accounts under dispute a $650 medical that i had removed and a $6900 auto loan that i settled but wasnt reporting - and then of course a few days later it updates as paid and i wrote this info on the LOE that i provided along with the settlement letter and a copy of the title they sent me. The only other thing is the medical that had a dispute comment for $650 and a $111 unpaid medical - that was not under dispute. I have a $700 cc chargeoff (unpaid) from 7 years ago thats set to fall off in july. My student loans are all in good standing since 06- mainly deferments and i have a car payment paid off in full 3 years and a open car payment 2 years no lates- ccs are all a little over a year old with no lates- nothing negative within the last 3 years- Apparently my DTI is on the higher end and this can prompt a manual u/w. Im at 50.1 for backend DTI with my requested amount of 159k - i kept asking if i should lower the amount as i was just throwng a number out there and i didnt have a specific property and he said its fine. I make 40k but have a side business that i cant claim for income but statement from paypal shows over 40k in sales within 6 months(this is sales - i only cleared about 20k) and have a $10 a month student loan on the IBR plan and , a $360 a month car payment with only 9k left (the rate is ridiculoussssssss.. i was going to refi but my LO said to just leave it as is for now- im sure on a 9k loan for a bmw i can get my payments reduced by $100 - i financed this loan when i had scores in the 500's ) and 3 cc limits no more than $500 and they are all paid in full - at the time of report i think they were reporting no more than $15 each.
I have about 18k in cash saved up and have more than 6 months reserves and enough for downpayment and closing. Apparently it went to higer up at company.. ugh what if it opens a can of worms and he is more picky about my file and starts to pick apart every little thing and i get declined.. ughhhh and to think this is ONLY the beggginning - i wonder if not having a property attached is hurting me???
Once the credit report is 90 days old in order to continue just a new credit report has to be pulled, you don't need to go through everything all over again (unless the new credit report is worse than the initial one).
Hmmm the LO stated the "approval" is only good for 90 days - so i guess it could be either or?? maybe it has to go through undewriting again..
@fuzzybear22 wrote:Wow, don't have any advice. Mine just went to underwriting and I had passed the automated desktop as well. My score is 703 so maybe it won't have to be manually underwritten? How do they calculate residual income? Is it the same as reserves?
I think you will be Ok- my credit file is probably considered a bigger risky file due to the reasons listed below- im glad my LO is fighting for me and even the underwriting manager was on the fence and didnt say just deny so it was brought to a higher up but who knows how long they could take to decide. Not the same as reserves- its the amount of money they require for you to have left over after all these below bills are paid... for a family of 4 its $888 that they want you to have leftover (but home is going to be only in my name- so yes we do have the leftover money& im comfortable with the 159k mortgage- my husband is a foreman electrician and makes decent money but cant be counted for income as he is not on the loan because he filed BK before we got married 1.5 years ago so i dont inherit his debt and he was laid off before then before i got him this good job (yes i know im such a wonderful wife lol)
Either way this is what i found for residual income
VA residual income is one of the major underwriting guidelines required to qualify for a VA mortgage. Residual income is calculated by determining the gross monthly income of the veteran and spouse. Then, ... deduct from that total gross monthly income the following monthly expenses
- State Taxes
- Social Security
- Federal Taxes
- Proposed new monthly house payment (PITI: principle, interest, taxes and insurance)
- Estimated Maintenance and Utilities
- Monthly Child Care Expense
- Alimony or Child Support
- Monthly consumer debt payments: installment and revolving credit cards