Will I get approved for this FHA???

[Anonymous]

Please forgive me if this rambles on too long. I am very stressed about this. I was preapproved and shopped for a house, got a fantastic deal. I am getting the mortgage on my own, spouse has worse credit than mine and the last house was foreclosed, my name was not on the loan. We moved for my job 1 1/2 years ago. We have been renting with no late rent checks. Bankruptcy 4 years ago this January.

When Loan Officer pulled my credit my mid score was 569, it is now 580 (truecredit.com). I had 5 credit cards, 4 small, 2 of them paid off because my loan officer asked me to, one is 2500. I have 1 car payment $532 with one 30 day late pay in June. I had a few 30 day lates in the spring (may,june) on my credit cards, 1 90 day, and no lates since june, these cards were the ones I paid off, I sent a letter of explaination for this, I had moved and my statements did not follow(I have a po box now), I was also in the hospital for major surgery. I finally recieved my voe's from employer for $49,000 per year, I had 3 voe's due to, I work administration, field and I recieve bonus. My Loan Officer has asked me to submit a letter of explaination for the 2 lines of work I do.I offered 129900 on the house, it appraised for 140000. I have 3% down and the seller is paying 6% closing. We must close by December 12th. This LO has had my paperwork for over a month.

Yesterday when my LO stalled me again until Monday I got scared and called another loan officer that said this is doable. Is this a doable mortage or is my head in the clouds?

Please help.

[Anonymous]

TX,

I feel your pain! I had an almost identical situation with my original loan officer who just kept dragging things out weeks un-end. I don't have the energy to rewrite the whole scenario but if you are interested, search all threads that I have authored here on this board for the last month, and read the replies. I think you will find this very informative to your situation.

Our income situation sounds surprisingly similar as well. In hindsight, I think my whole problem was this original loan officers inability to present the income in a manner to get final approval from the underwriter that caused all the delays, accompanied by severe laziness and lack of ambition. You need a loan officer that is willing to work for you and keep you apprised of what is going on.

My scores were a little higher, 624, but so was my loan $236,000.

Anyway, Once I was fed up, I did like you, and contacted several other loan officers. I found the best, most knowledgeable, hardworking, most responsive loan guy on the planet right here on these boards. I had my FHA case switched over to him and we will be closing next week.

This guy should be wearing a cape!!! If it can be done, he can do it, and fast!!! I recommend him with flying colors.

A Dec 12th closing sounds a little tight but if it is possible, My guy is the one to talk to.

I am not sure if he can help you as he has done me because I do not know the FHA guidelines as well as he does. It sounds that your income, and DTI are OK, but the credit and Bankruptcy issues sound a little weak.

If anyone can help you it would be Shane. And if he can not help you, you will know early on in the process because he knows the ropes so well.

I am surprised that I was able to get this reply in before he replied to you. He must be having Thanksgiving with his family which surprises me. The Shane I know would have a turkey drumstick in one hand while the other hand is typing answers to mortgage questions like yours.....hehe

Shane!, drop that turkey leg! People need answers!....hehe

TX, be on the lookout for reply from Shane, He will let you know in about 30 seconds if your goals are achievable. He is very good!

Good Luck

-D.Morris

[Anonymous]

I am getting the mortgage on my own, spouse has worse credit than mine and the last house was foreclosed, my name was not on the loan.

_______________________________________________________

Either way, a question will be asked "have you ever had a foreclosure" the answer is Yes, if you lie that is fraud and isn't allowed by law for any reason.

Wait the full 2 years for the foreclosure to hit your spouse's record and then properly get your loan thru FHA. 

[Anonymous]

Mel,

Even if the good credit spouse's name is not on the foreclosed house, and the bad credited spouse brought the foreclosed house in to the relationship, Must the good-credit spouse disclose that they are married to someone who was involved in a foreclosure?

I don't know if that is the case here, I just ask for my own curiosity.

Thanks,

-D.Morris

[Anonymous]

Thanks I appreciate your kind words. It has been miserable.

I do not intend to comit fraud! I did not own the house, you made an assumption there. How did you come to the conclusion I was married when he was foreclosed on?

[Anonymous]

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@Anonymous wrote:

When Loan Officer pulled my credit my mid score was 569, it is now 580 (truecredit.com).

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I don't have much to add except to say, completely ignore the credit scores from truecredit!  They use their own formula that lenders don't pay attention to.  Pull them here and you will get the FICO scores that most lenders actually use.  It might be especially important in your case since some lenders have a 580 minimum.

If you do need some more points, look at the balances on your credit cards compared to the limits.  The balances should be under 10% of the limits for best results.  Also, have you tried sending GW letters to the credit card companies for the lates?  It wouldn't help immediately since it takes a bit for them to respond, but if you explain your situation they might be willing to remove some of your bad marks.  

[BrianB_The_Loan_Professor]

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@Anonymous wrote:

Please forgive me if this rambles on too long. I am very stressed about this. I was preapproved and shopped for a house, got a fantastic deal. I am getting the mortgage on my own, spouse has worse credit than mine and the last house was foreclosed, my name was not on the loan. We moved for my job 1 1/2 years ago. We have been renting with no late rent checks. Bankruptcy 4 years ago this January.

When Loan Officer pulled my credit my mid score was 569, it is now 580 (truecredit.com). I had 5 credit cards, 4 small, 2 of them paid off because my loan officer asked me to, one is 2500. I have 1 car payment $532 with one 30 day late pay in June. I had a few 30 day lates in the spring (may,june) on my credit cards, 1 90 day, and no lates since june, these cards were the ones I paid off, I sent a letter of explaination for this, I had moved and my statements did not follow(I have a po box now), I was also in the hospital for major surgery. I finally recieved my voe's from employer for $49,000 per year, I had 3 voe's due to, I work administration, field and I recieve bonus. My Loan Officer has asked me to submit a letter of explaination for the 2 lines of work I do.I offered 129900 on the house, it appraised for 140000. I have 3% down and the seller is paying 6% closing. We must close by December 12th. This LO has had my paperwork for over a month.

Yesterday when my LO stalled me again until Monday I got scared and called another loan officer that said this is doable. Is this a doable mortage or is my head in the clouds?

Please help.

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These days if the credit is less than 580 almost 100% of the lenders still writing these loans require an automated approval. This is something your LO should be able to tell you within 2 hours

Your loan is a little complicated but a month should have been plenty of time to find out where you are....

not a good thing when things stall but it is the holiday season. Call them and ask for a straight answer.