topic Re: mortgage not approved in Mortgage Loans

mortgage not approved

fezwhy — Mon, 05 Aug 2013 17:40:51 GMT

So I just received word that I do not qualify for a mortgage. The reason given is due to my foreclosure in 2008 and I I must wait 7 years for a conventional loan. I must wait til after 8 2015. I have to say I am very disappointed. They pulled my fico and I am at 660. I could have sworn I read somewhere you can get a loan after 5 years. I applied at my local credit union. My income is 42k per year with 0 balance on my credit card and no other loans. A few friends have given me some referrals and I am debating trying someone else. Should I try again or keep working on my credit?

Re: mortgage not approved

frugalQ — Mon, 05 Aug 2013 17:50:42 GMT

I'm sorry to hear about your issue.

Have you thought about going FHA? I believe the rules are less restrictive for a foreclosure....3 or 4 years.

Re: mortgage not approved

fezwhy — Mon, 05 Aug 2013 18:13:23 GMT

I didn't think you could if you already foreclosed on a house with fha the last time. Hmm I guess I need to read up more. I thought maybe explaining my situation to the mortgage lender and they would help pick the one I would probably qualify for

Re: mortgage not approved

frugalQ — Mon, 05 Aug 2013 18:17:24 GMT

i didn't know there was a specification, but that may be the case....i'm not sure. good luck!

Re: mortgage not approved

Anonymous — Mon, 05 Aug 2013 19:04:17 GMT

Just wanted to let you know that for a FHA loan, you only have to wait for 3 years. I deed my last home back to the bank in 2009 and I am currently in the middle of a home purchase right now. As long as your DTI ratio is low, improved your credit score, have enough to put down and or pay the closing cost, and shop for a home within your DTI ratio, there shouldn't be a problem. My mid score pulled is a 650 and you will need atleast a 640 to qualify for 3.5% down. So don't give up, there is hope and a 2nd chance out there.

Re: mortgage not approved

Anonymous — Mon, 05 Aug 2013 19:27:56 GMT

That could also be a lender specific overlay... as far as I knew, conventional loans only required a 4 year wait after foreclosure.

Re: mortgage not approved

fezwhy — Mon, 05 Aug 2013 19:40:33 GMT

Good info everyone. There is hope for me then. I have 2 referrals for mortgage lenders. I think I will give it another try. I worked so hard on my credit. I was at 760 before foreclosure and dropped down into the 400s after foreclosure. It took 5 years to bring my score up to 660.

Re: mortgage not approved

StartingOver10 — Mon, 05 Aug 2013 20:13:58 GMT

Yes, everyone above is right - the criteria for FHA is 3 years from the date the deed transferred from you back to the bank. Make sure you bring that info in to your mortgage broker or mortgage banker. By info, I mean a copy of the deed going back to the bank. You will see it on the public records for your county where the proprty was located.