UW Denial...don't understand

[jadeite788]

I totally forgot, however my realtor told me not to get a denial letter from the 1st Lender.  So I didn't

[tooleman694]

I was living rent free for a while before we got our home, our lender wanted a LOE from my Mom saying we were living rent free and it worked.

They wanted 12 months rental history and we didnt have it.

However I think one of the things that helped us is that we put down like 50k and had like 15k in reserves.

[HopeThruFaith]

Thanks for the input. I've been working with another lender who has been very optimistic about my chances of getting approval. My file is currently in underwriting and I am supposed to close on Dec 30 @ 2pm. She said she doesn't see any reason for me not to be approved. My bank statements are clean, show money to close, I'm actually paying my down payment. My mid score is 668, I have one paid charge off, no lates in 12 months, and two small unpaid medical collections ($101). I have $5k in savings. She seems to be confident that the savings or no rental history won't be a problem. I can't wait til this is all over and I get that clear to close. The 30th is right around the corner.

[tooleman694]

For your score it should be good, I think the only reason why they wanted 12 months from me is because I had a couple of late mortgage payments in 2012.

[StartingOver10]

The reason the lender didn't want an official denial in the FHA system with the first lender is that the second lender would not be able to overcome the official denial within X days (don't recall the time frame).

One of the LO's here will have details, but it is much more difficult for lender #2 to override the final u/w decision put in the system at another lender without significant changes to the file which would create real issues for the borrower. This is for FHA loans only IIRC.

[HopeThruFaith]

Would the second LO be able to see if I had a denial showing up in the FHA system? Would it matter if I had put in a contract on another house? I'm worried now.

[StartingOver10]

AFAIK, It shows up in FHA connect. I believe it is property specific too.

One of the LO's that is familiar with the FHA connect system will have to step in to give answers...

[gotideas]

not all lenders require rental history.  We were living in the a relative's home for over six years and did not pay rent and we were able to purchase a home.  Several other lenders we tried would not do it due to payment shock but the last one had no problem with it.  We had our down payment and a small amount of reserves--so depending on the  lender it is possible to get a loan.  Keep trying