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12-05-2012 04:47 PM
My husband and I are under contract to have a new home built. We were pre-qualified before signing the contract and our contingency for financing was up 2 days ago. Our mortgage lady went to pull credit to get everything lined up on Monday and WHAM! My husband missed a student loan payment while he was traveling overseas for nearly a month, it had not yet been reported when they pulled for pre-qualification.
We already have an FHA loan (we are planning on renting out our existing home), so we have to go conventional. We also have to have PMI because we don't have enough down payment. His score is now too low to get the score where it needs to be for PMI. Once we have the statement that the account is current I am hoping that improves it a little. They extended our contingency for another 2 weeks but at this point I don't know if there is any point. I have called and pleaded and begged with numerous supervisors and no one will help. I have sent GW letters to several email addresses and via their website.
Does anyone know, on a conventional loan will an underwriter even look at a file without the proper credit score, even it it is close and with a letter of explanation? I am emailing and calling the mortgage broker like a mad woman and she is just not giving me the time of day
12-05-2012 05:34 PM
Yeah its over
2 big problems
1st - I dont see an underwriter approving you with a late that just happened. Its gonna be a tough one to explain.
2nd - The lender will need to insure the loan, and they have their own guidelines. Typically you need a minimum of a 680, or a 660 if you backend ratio is very very low.
12-06-2012 02:55 AM
12-06-2012 06:53 AM
Yeah, when I called - at least for MINE, back in the day - when I suggested that I just pay what was past due, they OFFERED the forebearance - it was like, their "go to" response I guess. I'm actually surprised that the OP didn't get that option - unless not all student loans etc work the same.
OP - try to call them back maybe and see if they'll do a "forebearance" maybe?
12-06-2012 08:42 AM
I am not sure that we would really qualify for a forebearance though. My husband was sent on a last minute overseas trip for 3+ weeks and had very limited internet access, or free time to even think about anything other than what he was working on, and made the payment when he got home. I don't think that would qualify as a hardship really, heh. Maybe it wouldn't hurt to try though...
Our mortgage loan lady is not telling us all hope is gone though. She has asked us to send in the statement showing the account is current and $0 balance due. We have that now, and the stupid letter now also says we are pre-paid through February so I am not entirely convinced the late payment reporting is completely accurate.
Sigh. This sucks so bad. I am so sad. I wish they would just tell me to give up hope so I can move on.
12-06-2012 09:03 AM
Oh, and I am pretty sure he is currently at 650 after the late payment hit. Maybe once the report shows the account is current it will help a little?
The builder and the lender are the same company as well...
12-06-2012 12:35 PM
Don't put the loans in forbearance. It was a big issue with my mortgage. I had to take my loans out of forbearance before anyone would insure the loan. Almost killed mine. Don't do it.