@keyelove wrote:Ok so we got word back from our lender today that we are denied. I'm so freakin disappointed and discouraged. You can see from my signature how far we've come with getting our credit in order so that we could apply. I feel like nothing I do is going to be good enough. I've gotten rid of everything I possibly could. The only things left is a student line. One TL reporting from the servicer and one for the guarantor but it's paid and been paid since 2010. Also my chapter 13 that was dismissed in 2011 after 4 1/2 years of payments. I originally filed in 11/2007. Everything else is paid as agreed. We have well over 3 tradelines that are at least 4 years old paid as agreed never late. My middle is 674 and DH is 624.
Here's the deal - so DH just had his chapter 13 discharged 5/2013. I guess BMG music found out and reported a $48 collection on his credit report as a new collection. When the lender pulled credit we had no knowledge of this was reported. A week after application we got an alert and called them up. It was a debt from back in 2007. He filed BK in 2010. We faxed over BK papers and they immediately submitted to have it removed. Keep in mind we didn't know it was reporting on the lender's credit report and was wondering why my DH's score dropped from 655 middle.
Then there's the dreaded over draft protection. I wrote a LOE for this and thought we were good. We applied on 6/14/2013 and up until today we were thinking everything was good because they came back and asked for a few more LOEs that were not related to the above to issues. They couldn't connect the zero balance student loans, meaning who was servicer and guarantor since they both were reporting. The other two issues that were denied for never came up.
Our LO advised that our income, DTI, payment shock and all other aspects were in line. We proved 12 months of rent and everything.
I'm at a complete and utter loss here. We were doing new construction and wasn't set to close until Nov/Dec. By that time, we could have shown no overdrafts on the bank statement and of course BMG is gone now and I'm sure he should get his points back.
Since we went FHA and they denied us I don't think we can go anywhere else. If we don't do new construction now, we won't be able to cause rates are going up and our lease is technically up in August. December would have been our drop dead date of moving. We're paying like $2600 a month in rent and we've been doing this for like 3 years now. This is such a bummer and I simply can't wrap my head around it.
Sorry for the long post but I'm just beside myself right now.
Sounds like it was the over draft protection not the collection on BMG. Some lenders require anywhere from 2-6 months of bank statements showing no overdrafts before applying. Mine only needed one month.
Starting Score: 565
