topic Re: Denied Conventional Loan in Mortgage Loans

Denied Conventional Loan

neptunejcw — Fri, 31 Jul 2015 05:42:01 GMT

Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA

Re: Denied Conventional Loan

sports1965 — Fri, 31 Jul 2015 09:04:52 GMT

and based on your scores going FHA is probably the better option for u anyway

Re: Denied Conventional Loan

Anonymous — Fri, 31 Jul 2015 11:33:01 GMT

@neptunejcw wrote:
Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA

You need at least 740 or higher score for a conventional loan. With your scores your PMI rate would have been too high.

Re: Denied Conventional Loan

Anonymous — Fri, 31 Jul 2015 11:42:18 GMT

The conv rate is about .5 higher than FHA

FHA mi factor is .80

conv mi factor with 680 score is .57

when you include the FHA upfront mortgage insurance, the FHA payment is a tad higher, and you have a higher loan amount by 1.75%

conventional is the cheaper option initially and you are also not married to FHA's MI for 11 years.

there is so much misguidance in these forums.

Ed Groussman

Re: Denied Conventional Loan

neptunejcw — Fri, 31 Jul 2015 12:33:14 GMT

With 10% down my MI would've been .57... & when my loan officer called me on the phone he did say the FHA loan monthly payment was about $30 than the conventional loan & on the FHA loan my MI is 157 compared to 110 I think on the conventional loan. & you don't need a 740 for conventional loan

Re: Denied Conventional Loan

neptunejcw — Fri, 31 Jul 2015 12:36:52 GMT

$30 cheaper typo

Re: Denied Conventional Loan

Anonymous — Fri, 31 Jul 2015 12:38:26 GMT

i sent you a message

Re: Denied Conventional Loan

Anonymous — Fri, 31 Jul 2015 12:44:49 GMT

@neptunejcw wrote:
With 10% down my MI would've been .57... & when my loan officer called me on the phone he did say the FHA loan monthly payment was about $30 than the conventional loan & on the FHA loan my MI is 157 compared to 110 I think on the conventional loan. & you don't need a 740 for conventional loan

I should have said you need a 740 or higher to get more favoral rate and low PMI with conventional loan.

Re: Denied Conventional Loan

ezdriver — Fri, 31 Jul 2015 15:13:25 GMT

@neptunejcw wrote:
Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA

The thread title is about having been denied for a convention loan yet your post is about an FHA loan app?

Sounds to me like you have a knucklehead lender. Find yourself another lender.

Re: Denied Conventional Loan

Anonymous — Fri, 31 Jul 2015 15:29:39 GMT

@ezdriver wrote:
@neptunejcw wrote:
Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA
The thread title is about having been denied for a convention loan yet your post is about an FHA loan app?

Sounds to me like you have a knucklehead lender. Find yourself another lender.

" Even everyone in the office is lost as to why it won't approve me."

^^ This rubs me the wrong way. AUS will always give the reasons for its decision. And if your lender cannot help you problem solve at this point, I'd find a new one.

Regarding conventional vs. FHA, you should always run the numbers (for those giving advice too). Here are the numbers for P&I only (assumed rates):

@Anonymous - $239,927 loan @ 4% w/ .80 MI - $1146

@Conventional - $235,800 @ 4.5% w/ .57 PMI - $1195

Re: Denied Conventional Loan

sports1965 — Fri, 31 Jul 2015 16:10:20 GMT

@Anonymous wrote:
@ezdriver wrote:
@neptunejcw wrote:
Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA
The thread title is about having been denied for a convention loan yet your post is about an FHA loan app?

Sounds to me like you have a knucklehead lender. Find yourself another lender.

" Even everyone in the office is lost as to why it won't approve me."

^^ This rubs me the wrong way. AUS will always give the reasons for its decision. And if your lender cannot help you problem solve at this point, I'd find a new one.

Regarding conventional vs. FHA, you should always run the numbers (for those giving advice too). Here are the numbers for P&I only (assumed rates):

@Anonymous - $239,927 loan @ 4% w/ .80 MI - $1146
@Conventional - $235,800 @ 4.5% w/ .57 PMI - $1195

Thats assuming he qualifies for the .57 PMI With a 683 middle score

Re: Denied Conventional Loan

Anonymous — Fri, 31 Jul 2015 16:15:15 GMT

@sports1965 wrote:
@Anonymous wrote:
@ezdriver wrote:
@neptunejcw wrote:
Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA
The thread title is about having been denied for a convention loan yet your post is about an FHA loan app?

Sounds to me like you have a knucklehead lender. Find yourself another lender.

" Even everyone in the office is lost as to why it won't approve me."

^^ This rubs me the wrong way. AUS will always give the reasons for its decision. And if your lender cannot help you problem solve at this point, I'd find a new one.

Regarding conventional vs. FHA, you should always run the numbers (for those giving advice too). Here are the numbers for P&I only (assumed rates):

@Anonymous - $239,927 loan @ 4% w/ .80 MI - $1146
@Conventional - $235,800 @ 4.5% w/ .57 PMI - $1195
Thats assuming he qualifies for the .57 PMI With a 683 middle score

He will, that's pretty much how it works with PMI companies. There is a chart that matches up LTV with credit score brackets, and that is the PMI rate you get 99.9% of the time.

Re: Denied Conventional Loan

ezdriver — Sat, 01 Aug 2015 17:06:26 GMT

@Anonymous wrote:
@ezdriver wrote:
@neptunejcw wrote:
Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA
The thread title is about having been denied for a convention loan yet your post is about an FHA loan app?

Sounds to me like you have a knucklehead lender. Find yourself another lender.

" Even everyone in the office is lost as to why it won't approve me."

^^ This rubs me the wrong way. AUS will always give the reasons for its decision. And if your lender cannot help you problem solve at this point, I'd find a new one.

Regarding conventional vs. FHA, you should always run the numbers (for those giving advice too). Here are the numbers for P&I only (assumed rates):

@Anonymous - $239,927 loan @ 4% w/ .80 MI - $1146
@Conventional - $235,800 @ 4.5% w/ .57 PMI - $1195

Thanks for the reminder but why run numbers if the borrower will not qualify based on their score? As a loan officer, do you run numbers first and then tell the borrower that they don't qualify but, if the did qualify, this is what your payment would have been?

Re: Denied Conventional Loan

Anonymous — Sat, 01 Aug 2015 18:19:19 GMT

@ezdriver wrote:
@Anonymous wrote:
@ezdriver wrote:
@neptunejcw wrote:
Yesterday my loan officer called me & told me the system wouldn't except my conventional loan & neither him or the underwriter can understand why...I'll give you a lil info...New construction sale price is 262,000...I have 10% to put down, mid score is 683, great ratio I think it's like 28% C.Card balance are 1000 limit with a balance of $20 & another card with a 300 C.L with a $50 balance...I have a car loan which I've had for a year $504 a month balance is like 28K & my income is around 92K a year... Only baddies I have is a old car loan from 2010 with a few lates but it's paid off & a paid off judgement from 2010...& my other scores are T.U. 670 &Ex 695 & Eq.683...Can someone please explain how on earth can the system give me a" refer with caution " flag on my file. Even everyone in the office is lost as to why it won't approve me. But of course the system approved me for a FHA now they pushing me to go FHA
The thread title is about having been denied for a convention loan yet your post is about an FHA loan app?

Sounds to me like you have a knucklehead lender. Find yourself another lender.

" Even everyone in the office is lost as to why it won't approve me."

^^ This rubs me the wrong way. AUS will always give the reasons for its decision. And if your lender cannot help you problem solve at this point, I'd find a new one.

Regarding conventional vs. FHA, you should always run the numbers (for those giving advice too). Here are the numbers for P&I only (assumed rates):

@Anonymous - $239,927 loan @ 4% w/ .80 MI - $1146
@Conventional - $235,800 @ 4.5% w/ .57 PMI - $1195
Thanks for the reminder but why run numbers if the borrower will not qualify based on their score? As a loan officer, do you run numbers first and then tell the borrower that they don't qualify but, if the did qualify, this is what your payment would have been?

I was simply giving an example of running the numbers. I'm pretty sure if my borrower was at 680+, I could either A) problem solve how to get them to qualify for a conventional loan... Or B) at least be able to tell them why they don't based on AUS findings.

Re: Denied Conventional Loan

neptunejcw — Sat, 01 Aug 2015 22:21:47 GMT

I was told because I have a short credit history & no past rental history is the reason why it turned me down. & From the system opinion I'm getting a pretty sizable mortgage being that I'm a 1st time home buyer. Even though I qualify & have great ratios. So I'm forced to get a FHA & refinance into a conventional after 6months or a year. Even with 15% down they said the system still wouldn't except it which is very odd to me

Re: Denied Conventional Loan

Anonymous — Sun, 02 Aug 2015 14:19:04 GMT

Are your scores Fico 8 or Fico mortgage scores.

How many lenders did you try? Typically most people only go to 1 and wonder why they are denied. There are other lenders out there. Don't stop.

Try: https://www.lendingtree.com/mortgage-loans-index

You should be accepted, by someone. Accepted (approved) versus except (not including). Just a grammar stickler.