PA FHA Loan Question

[Anonymous]

After scouring the threads for answers to my question, I no decided to create one of my own, hoping to get accurate information from credible mortgage professionals.

My scenario:

EQ - 793

EX - 739

TU - 630

No negs on EX and EQ. TU reporting 3 30-day lates being disputed 

Occupation - Public school teacher for 6 years

12 years good credit history

One installment loan 1 yr 3 mo. old

One AU on credit card through HSBC 

I recently applied for an FHA home loan in PA. My DTI were a few % points under max, clear on that end. My scores are from myFICO, fairly accurate. The LO through the builder (home is new construction) and their mortgage branch said they didn' have a loan product that met my needs and forwarded my file to an affiliate lender. 

What exactly am I missing here? Any input as to why a lender may have referred to affiliate lender or other information welcome.

Thanks! 

[Anonymous]

how much money do you have to put down.  If you are trying to go minimal out of pocket it might not work with their loan program.

It also may be becuase they think they can get you a better rate at the affiliated lender.

[Anonymous]

I put $4950 down which was a gift. 

The LO said that they had no products that met my needs. What else could be the issue possibly? 

[Anonymous]

$4950 was 3.5% on the home.

[Anonymous]

Well, what was their official explanation?

[Anonymous]

When were 30 day lates from.  If they were in the last year, that alon could kill the loan.  I am assuming since there is a 100 point difference in your TU score, that those lates were fairly recent.  Typically banks want no negative marks in last 12 months and very few last 24.  So especially if the 30 day lates were in the last year that could be it.  It could be the fact that you mention no reserves and are not puttin any money down....From a lending standpoint, lenders see no reserves and you using gift funds for down payment as a risky loan.  You have no "skin in the game" as they say.  FICO scores are actually a small part of getting a loan.  You have to meet certain guidelines to be considered, but once you do, and especially with FHA, it matters little how high your score is....Other factors take control then such as debt load, cash on hand, LTV, appraisal, recent credit history, use of available credit, etc. 

[Anonymous]

No official explanation was given from the LO.

3 Months of reserves are in savings account and additional is checking.

The 30 day lates were Apr. May, June of 08'.  

[Anonymous]

the lates could still be an issue as they were in the last 2 years, but it seems pretty harsh being they are 18 months old or so.

It really does not make much sense honestly.  It might even be some sort of mistake or data input error since they all use programs to do this work. 

[Anonymous]

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@Anonymous wrote:

No negs on EX and EQ. TU reporting 3 30-day lates being disputed

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Disputes have been an issue lately.  You might find better luck when these are cleared up.  In the past people would dispute items as a means to temporarily increase their score and find when the dispute is resolved their scores drop again.  If that was the case I don't see why they wouldn't tell you upfront, though..

[Anonymous]

It's possible that while your dti is under fha rules on the max, the lenders your builder uses could have their own set of rules where they wont approve anyone with a % at a certain number regardless if it's still under the fha limit.  Being a teacher you should check into seeing if they have any loan programs in pa for teachers.  A lot of state have programs like that as well as down payment assistance programs too.