topic Re: fha denial? in Mortgage Loans

fha denial?

Anonymous — Wed, 16 Jul 2008 22:53:50 GMT

heres the story. was approve/eligible by automated uw for fha loan. got together all docs, LOEs for some small old collections, fiances bk7 from 2.5 yrs ago, etc., low mid fico of 642. uw made a decision yesterday AM, denied due to bounced checks. i didnt have any bounced checks! I did have a few checks overdraft last month but i have overdraft protection which covered them. broker said he will fight this since it's pulling from another account and perhaps the uw didnt see this, and the account exec is to talk to uw. this was yesterday, still no word today and its driving me nuts. has anyone had an app denied due to overdrafts (with od protection even??) we are supposed to close on july 31st.

Re: fha denial?

Anonymous — Wed, 16 Jul 2008 23:42:35 GMT

I was denied for the same thing back in Jan...technically you did bounce checks...you have overdraft protection...but there was not enough in the bank to cover the check...so the bank covered it for you....and that's what they are looking at...they didn't just ask you for a explanation for the overdrafts???...

Re: fha denial?

Anonymous — Wed, 16 Jul 2008 23:49:39 GMT

well, I did it intentionally. One was to do do a balance transfer type deal because the interest on that line of credit is lower than any of my ccs. Also, the credit limit is one of my highest at 10k. Nope, didnt ask for explanation, just denied.

In hindsight, I should have used the checks I have straight from the line of credit and bypassed the checking account, but didnt think it would matter.

Did you get approved with another lender? or am I SOL with the house we are under contract on...?

Message Edited by wantahome on 07-16-2008 04:49 PM

Re: fha denial?

Anonymous — Wed, 16 Jul 2008 23:55:49 GMT

NOPE...I tried a few months later...and was denied based on length of credit...and I was told to wait until mid August...and do a new build...so when the house is complete...I will have 3 sufficient TLs of credit....that I needed...

Re: fha denial?

Anonymous — Thu, 17 Jul 2008 00:01:18 GMT

ugh. well im hoping she/he has a change of heart. i have many positive installment TLs, 4 student loans paid on time since 2001 totalling $460/mo, 5 auto loans paid on time and closed, etc. no derogs in over 2 yrs for me and fiance. he has a few positive revolving tls since bk7... crossing my fingers.

Re: fha denial?

Anonymous — Thu, 17 Jul 2008 01:17:22 GMT

stay positive...GOOD LUCK!!!

Re: fha denial?

phumanr — Sat, 19 Jul 2008 13:43:01 GMT

Which bank are you using for FHA?

Thanks,

Phumanr

Re: fha denial?

Anonymous — Sat, 19 Jul 2008 14:02:49 GMT

Well the UW requested a bank statement for OD protection and sent that, and she denied again. Said I am spending more than I make, which isn't completely true because most of them were balance transfers (lower int rate), not just random spending. I believe it was Flagstar. We are going to try another lender with a VOD instead. (im the op)

Message Edited by Alicia671 on 07-19-2008 07:02 AM

Re: fha denial?

DallasLoanGuy — Sat, 19 Jul 2008 14:32:55 GMT

wantahome wrote:
heres the story. was approve/eligible by automated uw for fha loan. got together all docs, LOEs for some small old collections, fiances bk7 from 2.5 yrs ago, etc., low mid fico of 642. uw made a decision yesterday AM, denied due to bounced checks. i didnt have any bounced checks! I did have a few checks overdraft last month but i have overdraft protection which covered them. broker said he will fight this since it's pulling from another account and perhaps the uw didnt see this, and the account exec is to talk to uw. this was yesterday, still no word today and its driving me nuts. has anyone had an app denied due to overdrafts (with od protection even??) we are supposed to close on july 31st.

This is why it is important to have a good loan officer.... the loan officer should have gotten a verification of deposit and shredded the bank statements.

Re: fha denial?

Anonymous — Sat, 19 Jul 2008 16:05:57 GMT

I am confident he is a good loan officer, but what I had to send wasnt a bank statement, it was a list of transactions that my bank faxed to me (statement hadnt cut yet) so it was difficult to notice the NSFs. I didn't even mention it because I didn't think it was a big deal, for whatever reason. We are now in process of getting a VOD, hopefully they send it soon, my loan commitment contingency expires Friday, so I am hoping we get an approval this week from lender #2. Just worried because won't lender #2 see lender #1's denial and reason?

Message Edited by Alicia671 on 07-19-2008 09:05 AM

Re: fha denial?

Anonymous — Sat, 19 Jul 2008 21:46:29 GMT

I think I agree with Dallas on this one... I feel that if the LO saw anything that would have possibly prevented you from getting the loan especially if you went through au and passed he should have verified all deposits with your bank instead of taking something to them that would have been noticable like NSF's

Re: fha denial?

Anonymous — Sun, 20 Jul 2008 19:48:08 GMT

My point was that he didnt notice them (they werent clearly marked at all on my document) and I didnt point them out, or else I am sure he would have gotten a VOD instead. My question is, if we try with lender #2 with a VOD instead of statements, will they see the reason for denial from lender #1? I think the reason was listed as 'financial responsibility'. My loan commitment contingency expires on Friday, or else I lose earnest.

Re: fha denial?

Anonymous — Mon, 21 Jul 2008 14:06:40 GMT

Ugh I am supposed to close next Thursday (10 days!!) and uw #2 doesn't even have my file yet. I'm so stressed out.

Re: fha denial?

Anonymous — Fri, 11 Jan 2013 14:05:41 GMT

I live in pa. I was just denied a ameriserve/va loan a few days before closing, due to several overdrafts on my bank statement. I didnt think it would be an issue, since i pay for overdraft protection. My credit score is 760 and dti is @25%. Do you think you could get me a loan?

Re: fha denial?

Anonymous — Fri, 11 Jan 2013 14:33:49 GMT

Just my three cents.

I think any one in this situation is better off with a broker.

Brokers work much harder to get approvals compared to LO's working in a bank.

Any good LO or Broker should have seen the overdrafts. You shouldnt have to tell them. That is part of their job to go over your financial information.

With that being said I agree with Dallas.

Re: fha denial?

Anonymous — Fri, 11 Jan 2013 16:14:13 GMT

@Anonymous wrote:
@I live in pa. I was just denied a ameriserve/va loan a few days before closing, due to several overdrafts on my bank statement. I didnt think it would be an issue, since i pay for overdraft protection. My credit score is 760 and dti is @Anonymous%. Do you think you could get me a loan?

How many overdrafts did you have?

I had one (in 2 months) and wrote a Letter of Explanation and was told it shouldn't be a problem.

Re: fha denial?

tooleman694 — Fri, 11 Jan 2013 16:18:29 GMT

I think this is an UW call. If you get one in a bad mood, your homeless.

Re: fha denial?

Anonymous — Fri, 11 Jan 2013 17:07:59 GMT

Pretty much we are all dependent on UW mood swings.

It happens in all walks of life.

Just remember while most UW's are paid a salary they isually have a bonus structure per file paid to them.

With that being said it is more beneficial for them to approve the loan versus denu the loan.

Re: fha denial?

cclee — Fri, 11 Jan 2013 18:29:50 GMT

This is just an "out of curiosity" question, but do they consider it "living above your means" if the over draft was covered by the savings account? I use my savings linked to my checking for over draft protection, have not had to use it but you know, as soon as you apply..

Re: fha denial?

Anonymous — Fri, 11 Jan 2013 18:41:27 GMT

I don't think it's so much a thing of living above your means thing, but more of a money management thing. It doesn't look good to the UW to rely on the bank to transfer money around, it would be better if you transfer the money yourself to cover a bill.