Some of you will remember my story from over the summer and I'm here to post the conclusion (or near conclusion I guess).
I'm using the Back to Work Program because I had a foreclosure in 2012. I stopped paying the mortgage in April 2010, but the foreclosure wasn't finalized until May of 2012. I lost my job and was out of work for 18 months, burned through my savings before I stopped paying yada yada yada.
Fast forward to Summer 2014 - I'd been living with my dad, who has Alzheimers, since February of 2012 but knew I was soon going to need to place him in a nursing home. I had no desire to live in his home after he left so I started learning about my options after the FC. I spent several months cleaning up my CR as best I could - I paid a judgment, settled another, paid down all my cards and so on. February 2013 my EQ score was 535. By August 2014 it was 654.
On July 16 I completed the Back to Work Counseling and then waited the requisite 30 days before applying for pre-approval. After a false start with a national lender, I found a local lender who would work with me. Right from the start I sent her documentation of my loss of income leading up to the FC and letters of explanation for everything bad on my credit report - everything stemmed from the job loss and 18 months of unemployment. I sent tax returns showing my income in 2008, 2009, the drop in 2010-2012 as well as my unemployment statements. I sent all the usual requirements for pre-approval (paystubs, bank statements etc).
On August 20th I was pre-approved (my lender pulled scores were EQ 678, EX 685, TU 695) for $160,000 at 4.37% and I started house shopping. Soon after, it became very clear that my dad's health was getting worse so I put the house shopping on the back-burner and focused on trying to get him placed in a NH (not easy if you're going straight from home, just FYI).
In September I located a house I wanted (owned by the parents of a close friend), but didn't want to move forward with it until my dad was settled.
On October 30, my dad went into the NH. I contacted my lender and told her I was ready to proceed and on November 5th we drew up the sales contract. Before my lender even got the sales contract I sent her my latest paystubs and back account statements.
On November 6th I signed all the loan application documents online and got the first GFE. I locked my rate at 4%. My credit was pulled again (EQ 679, EX 695, TU 703).
On November 7th the appraisal was ordered and it came back on November 11th.
I had to explain why my student loan payment, under IBR, had gone up in October, but that took just a few minutes.
On November 13th I entered final underwriting.
On November 15th I received my final approval and we'd actually already scheduled closing for November 20th.
So, assuming I don't make any major purchases, lose my job, or become a ninja, we're all set for November 20th.
It was a lot easier than I imagined and the only thing that took time was me waiting to make an offer until my dad was settled. Other than that the whole process took 2 weeks.
I had all my documentation regarding my job loss and drop in income ready to go and basically just sent them everything I thought they'd need and wrote LOX for the bad stuff.
I really just had a great lender who asked for everything she needed before I went into underwriting so there was no back and forth or requests for more documentation etc.
Closing is set for 3pm this Thursday!
Starting Score: 2/2013 EQ 535
Congratulations!!!! This is the 2nd success on BTW we have seen on here. It sounds like you did all your research and were prepared. I think that is 90% of the battle and the other 10% is having a LO that is competent!!!
@ezdriver wrote:Congratulations and all the best for a smooth closing on my birthday...Nov 20th! Now all here knows of two of us who have successfully navigated the world of FHA's Back To Work program.
Hey EZ! It's even better that it's your birthday! You were a great source of info and inspiration to me during my journey so double yay!
And yes, that's two of us . . . and to be honest with you, I feel like mine was a complete doddle. I really expected it to be way more painful and take a lot longer than it did! I had a great loan officer though and that helps for sure.
And . . . Closed.
I just wanted to log this as a Back to Work success story.