topic Re: FHA Streamline - Document request questions in Mortgage Loans

FHA Streamline - Document request questions

EaglesFan2006 — Fri, 04 Dec 2020 21:08:33 GMT

doing an FHA streamline and got the conditional approval yesterday. today I got a request for some docs. One was a joint account authorization letter so goog there. The other 2 i'm a bit confused about:

1) A retirement statement - the request wording was this:

Retirement Account: Provide the most recent [insert: months] bank statements from retirement account Fidelity along with the terms of withdrawal. If statements are quarterly, provide the most current statement with all pages dated within the last 4 months.

Is there a minimum amount they're looking for in retirement savings?

2) Cash to Close

Provide documentation for additional funds to close

Not sure where exactly they pulled the amount I have to close from...However its not pulling what I have in currently in my account, not to menttion the December income and the January payment I would use toward closing costs (closing tentatively Jan 5th) that I discussed with the LO when going through the app process. Regardless, i'm not exactly sure how to 'document' this for what they need. What am I supposed to be profividing here?

Re: FHA Streamline - Document request questions

Anonymous — Fri, 04 Dec 2020 21:17:53 GMT

@EaglesFan2006 Howdy! Are you drawing your down payment from your 401K?

Re: FHA Streamline - Document request questions

EaglesFan2006 — Fri, 04 Dec 2020 21:21:01 GMT

@Anonymous wrote:
@EaglesFan2006 Howdy! Are you drawing your down payment from your 401K?

No...as as streamline there's no down payment, just a relatively small amount of closing costs...which would be covered almost entirely by my January payment which would no longer be needed plus perhaps a little more that I have enough in my account to cover.

Re: FHA Streamline - Document request questions

Anonymous — Fri, 04 Dec 2020 21:38:47 GMT

@EaglesFan2006

Thanks for clarifying!

So for the retirement account, I don't think they're looking for a minimum amount. They're probably verifying what your assets are and what options would be available in case of hardship.

With the cash to close, I would check with your LO or your processor to confirm what they want/how to document. With our loan, we put down a deposit and it was not showing in our CTC. I called our LO and the processor to confirm that I would be getting credit for my deposit and they were both able to confirm.

Re: FHA Streamline - Document request questions

EaglesFan2006 — Fri, 04 Dec 2020 22:03:18 GMT

@Anonymous wrote:
@EaglesFan2006

Thanks for clarifying!

So for the retirement account, I don't think they're looking for a minimum amount. They're probably verifying what your assets are and what options would be available in case of hardship.

With the cash to close, I would check with your LO or your processor to confirm what they want/how to document. With our loan, we put down a deposit and it was not showing in our CTC. I called our LO and the processor to confirm that I would be getting credit for my deposit and they were both able to confirm.

Thanks... I would've thought that first part would've already been considered in the conditional approval.

Re: FHA Streamline - Document request questions

NC_Mtg_Loaner — Sat, 05 Dec 2020 14:31:09 GMT

CHeck the estimated cash to close figure on your LE

Be sure that you send them a bank account statement (or in process monthly summary) that shows you have more money in the account than the figure listed in the LE.

If you needed $500 to close your loan and submit a bank statement showing you have $40 in it, what effect do you think this would have on your loan approval?

It's not likely the reserves are required, but it's nice to have

Re: FHA Streamline - Document request questions

EaglesFan2006 — Sat, 05 Dec 2020 16:15:54 GMT

@NC_Mtg_Loaner wrote:
CHeck the estimated cash to close figure on your LE

Be sure that you send them a bank account statement (or in process monthly summary) that shows you have more money in the account than the figure listed in the LE.

If you needed $500 to close your loan and submit a bank statement showing you have $40 in it, what effect do you think this would have on your loan approval?

It's not likely the reserves are required, but it's nice to have

Thanks... I kind of figured I needed to send an updated bank statement this morning which I did. Just wasn't sure at the time what document they would need.

Re: FHA Streamline - Document request questions

MauiMan85297 — Mon, 07 Dec 2020 14:42:08 GMT

Not really looking for a specific amount in 401k (retirement) but just the statement. You must be bringing a bit more to closing than what your new mortgage payment is going to be and if so they want to make sure you have enough in account to close and where the money came from if it was a recent deposit with no trail. Depending on how much over the payment your LO should have set the file up with just under a payment to close as to not give an UW more reason to nit-pick.