FHA referred eligible 3 days before closing!

[Anonymous]

We were approved through FHA DU in the beginning of the process. Our lender estimated everything high (student loan payments, insurance), and we got automatic approval. We even called before we put an offer on the house and it was still saying approved. File goes to underwriter and he sends back conditions. We took care of those and he goes to submit for clear to close and it comes back referred! What?! My DTI is 6 points lower since our lender overestimated in the beginning. She tells me it is some kind of glitch and her, her underwriter, her boss, and even a lady she spoke with at FHA aren't sure why this is happening. We were set to close in 3 days. They were so confident we already signed the closing disclosure. My lender is working on this over the weekend, but I'm afraid it's over for us. She said we could do manual underwrite, but I'm so pissed off I told her no. SOMEONE can fix this! Please tell me you guys have heard of this happening and there was a good ending!! Help!!

[kjade1030]

Did you get it straightened out?  What happened?  If they sent the closing disclosure, they can't go back on their decision.

[Anonymous]

We are still waiting to hear something. I talked to our lender yesterday and she said she had emails out to some people. I wasn't aware they couldn't go back on the decision after we've signed the closing disclosure. That's interesting! Of course, I'd probably need an attorney to get them to fund it anyway without FHA approval.

[VALoanMaster]

Hi NurseBetty17,

DU had an update on 7/29 & again yesterday so it is possible that something changed to cause your loan to refer. The simplest solution is to flip your file over to LP to see if you can get an approval. If LP doesn't run Accept, you'll know there is a problem.

[Anonymous]

Thank you! I will pass the suggestion on to her. What is LP?

[VALoanMaster]

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@Anonymous wrote:
Thank you! I will pass the suggestion on to her. What is LP?

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LP is the automated underwriting system (AUS) for Freddie Mac. DU is the AUS for Fannie Mae.

[Anonymous]

Hello,

I was wondering if this issue was resolved for you?  I am currently experiencing the same issue.  I am so stressed out.

Thank you,

[Anonymous]

I wish I could give you hope, but still no answers right now. I will update as soon as I hear something, and please do the same! Good luck to both of us!

[Anonymous]

Thank you!!  Spending positive vibes your way. 

[Anonymous]

Thanks! So my lender tried playing around with it, and found that if she added more to my assets that it was saying approved again. So, we are back to the underwriter this afternoon and hoping to hear tomorrow. Her best guess is with the update, something changed and now they are a little stricter on things. Not sure. But I'm not getting my hopes up until keys are in hand this time!