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FHA loan during Covid-19 because landlord died of Covid-19- Tax transcript question help pls

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VALoanMaster
Valued Contributor

Re: FHA loan during Covid-19 because landlord died of Covid-19- Tax transcript question help pls


@Anonymous wrote:

I submitted our 2017 and 2018 in the beginning not even thinking about the current season being 2019. So when we got the loan docs saying all the other paperwork needing to be submitted it only asked for 2019, 2018, and 2017. I texted LO to tell him I could file 2019 no problem but would owe he said to hold off since the deadline was extended. They never actually asked for 2016 until I read that transcript release form, it was buried down in the years requested. That's why I'm sort of wondering why they'd request it when they never actually asked me for it in the doc requests....

 

I feel like I'm spiraling down a rabbit hole worried about stuff that may not matter. I even asked my cousin who's a LO in Texas about being able to request them, he said they're jus putting the signed form in the file during Covid. But I'm worried my lender who is a little bigger than the one cuz works at may have a different way to pull.


The IRS stopped processing third party requests for transcripts so lenders cannot pull them right now which is why we are waiving the requirement like hpotterfan77 said.

 

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Message 11 of 18
Anonymous
Not applicable

Re: FHA loan during Covid-19 because landlord died of Covid-19- Tax transcript question help pls

VaLoanmaster can I tell you how much I love you and don't even know you? I read that and cousin confirmed it but it's really bothering me. I just looked and yes indeed my 2016 is missing. So if we get thru closing on time, my first order of business is file 2016 return so I never lose sleep again. One more thing to keep my husband in the doghouse cause what the heck! So stupid!!!

Message 12 of 18
Anonymous
Not applicable

Re: FHA loan during Covid-19 because landlord died of Covid-19- Tax transcript question help pls

What were his suggestions to lower closing costs? I am in a similar position of buying unexpectedly due to a landlord selling and that is one area that I am feeling a little overwhelmed with. 

Message 13 of 18
Anonymous
Not applicable

Re: FHA loan during Covid-19 because landlord died of Covid-19- Tax transcript question help pls

So they will only take IRS transcripts, what if you have the last 4 years tax returns in your file cabinet?  

Message 14 of 18
Anonymous
Not applicable

Re: FHA loan during Covid-19 because landlord died of Covid-19- Tax transcript question help pls

Ok, Cschilling22, so we originally had to have $11,543  cash to close due to down payment around $7200, $2000 of debt to pay off out of cash to close, and closing costs. PLUS 3 months of house payments seasoned in the bank. Credit score was in 620's when quoted that amount. So then the lenders min score changed to 640. Had to pay down credit cards a total of $4100 to jump the score but that was part of our cash to close / funds on hand. So went back to the drawing board, had a loan on a trailer that was co-signed with a car restoration partner that would buy out the loan which dropped debt to income to 49% so that changed our need to have 3 mos payments in the bank at close. Also got seller to credit our closing costs of around $2500 as well as giving us a $3000 credit at the table to replace HVAC he didn't want to fool with. That couldn't be counted in the grand total. But since we decreased CC's and sold the trailer that dropped our DTI enough to change the cash to close amount to just down payment and those couple of debts we're paying in the closing check. 

basically our loan officer played around with all scenarios until he could give us a total that worked in our favor after spending a huge chunk of money on CC's being paid down to keep qualifying after min score changed. Honestly the only good thing about this stay at home order is all the money we've saved from staying home.

 

Havent gotten to new total yet, but expecting the cash to close to come in around $8900

 

our appraisal was done a day early (today) and our loan went to underwriting tonight!!!! I've been getting the feeling all week he would try to move the timeline up a few days due to the markets constantly changing and he did. He said the underwriter usually takes 48-72 hours max so there's a chance I'll be able to actually sleep this weekend finally. I'm just praying it all goes as needed because we have nowhere to stay!

 

Good luck to you!

Message 15 of 18
Anonymous
Not applicable

Re: FHA loan during Covid-19 because landlord died of Covid-19- Tax transcript question help pls

@Anonymous, From my understanding they require tax transcripts as of last year some sort of HUD policy change. But lenders maybe have always requested those to cut down on tax return fraud being turned in by applicants. I've turned in every return requested, they never asked for 2016 return, but on the transcript release they requested 2016 and that's what has me worried because I found out yesterday husband didn't complete the filing. 

Due to Covid, IRS isn't accepting 3rd party inquiries so lenders are including the signed transcript form in their file for when things get back to normal. All this i read online but I tend to only believe what I can verify 100% so I've been pretty twerked out of frame over that.

Message 16 of 18
Anonymous
Not applicable

Re: FHA loan during Covid-19 because landlord died of Covid-19- Tax transcript question help pls

Thank you for the reply. I am paying $345,000 and my closing costs are around $6,000 and that includes having some costs waived and rolling others into the loan. I am trying to figure out how to reduce it. I am worried about depleting so much of my savings in these uncertain times. 

Message 17 of 18
Anonymous
Not applicable

Re: FHA loan during Covid-19 because landlord died of Covid-19- Tax transcript question help pls

UPDATE*** I just wanted to update anyone that was interested. We have finally gotten the clear to close call this morning. We were supposed to close at 11am today but had a paperwork delay at the last minute yesterday at 4pm. They just needed a copy of our credit card showing the balance we sent them 2 weeks ago. That was the snag!! Whew talk about panic and no sleep last night!!! Sent the statement this morning at 9:30, LO called at 10 to tell me it's in the closing department now and getting packaged to make it to the lawyer for a 3pm closing today but you are clear to close!!

 

This has been such an intense process between the last minute loss of our home, to finding out we could buy, to the worry about or transcripts, I'm so thankful for all who helped calm my nerves. Not one mention of our transcripts!! I don't think they were a problem after all since we had filed them I was just paranoid because of that 2016 questionable return.

 

Good luck to everyone out there! We thought it was impossible, only to find the right lender who made it a reality!!

 

Whoo-Hoo!!

Message 18 of 18
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