Fha down payment

[Anonymous]

Hey everyone! Im hoping someone on here can put my mind at ease. We are in the final stages of purchasing a home through an fha loan. We have some low mortgage fico scores and searched far and wide for one that would lend with low scores. Anyway, had some past credit issues, all paid in full and some medical debt totaling less than 4,000 altogether on my husbands report. Purchasing in SC for 259,000. Paid $1,000 in earnest money. Supposed to close on Thursday-not happening. File was sent back to underwriter after rapid rescore(had me removed as authorized user on husbands card). We have long received our disclosures, given ALL documents on time. Lender has all of our bank statements and says on Friday- I hope the underwriter doesn't make you put 10% down. Well it has been known from the get go we have 9500 to put down. Not 26,000. We are working with a terrible score like I said of 592 lowest middle. I've read everything I can on this, freaked out to my real estate agent. Has anyone ever heard of underwriter coming back days befor closing and insisting on 6.5 more down?? I cannot find anything anywhere. I asked why, LO said oh well some people do

that to increase approval odds. Well we passed three desktop system so he said and has NEVER mentioned this before. Next email he says, I hope tp

have the approval by mid week. What gives?? Anyone have any advice? And please do not respond with work

on your credit and buy a different time. Thanks in advance!

[Anonymous]

I would have thought the LO would have mentioned the possibility of needing a higher down payment earlier in the process. But yes, the underwriter is the one who will give you the clear to close or not. If that bank doesn't usually grant mortgages to a certain score, they may require more up front to push it through. Even after this step, they still have to fund it after closing. It's a very nerve wracking process where you can't really get a sigh off relief until the way end. 

My only advice besides the obvious (find a way to get more for the down payment or look for a house where you can put down 10%) might be to shop for another lender. At these scores, be careful not to get a predatory lendor. Hoping for best case scenario for you.

[DallasLoanGuy]

did the loan officer have a reason why the uw might ask for 6.5% more?

either they can do 3.5% down with a 580 or they cant.

never seen an uw ask for a higher dp if the client qualified at 3.5% down

[Anonymous]

I asked him why. He responded with well
Some buyers like to put 10% down to increase their approval odds. He's known from the beginning we have 3.5% to put down and no other means of coming up with 16000
More. We've had several instances with him telling me things that the underwriter doesn't ask for. Btw this is a subprime lender and I researched them. He originally asked me
To pay off all medical collections and then came back with good news the underwriter doesn't need any of that paid after I started paying on it. I'm just going to stay positive at this point and hope the underwriter gives us the loan!

[DallasLoanGuy]

too late to switch?

sounds like this person doesnt know their own guidelines

[Anonymous]

Oh yeah.
We were supposed to close Thursday.

[kc0039]

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@DallasLoanGuy wrote:

too late to switch?

sounds like this person doesnt know their own guidelines

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It seems like this LO doesn't know how to read DU or messed up big time!

[HigherFico]

How were you able to find a lender to qualify you? I have similar scores and need a person that would accept scores like that. But of course understand everything upfront.

[Anonymous]

I searched for subprime lenders with good rating on bbb. Also searched for the specific lender overlays and credit requirements for the loan types.

[HigherFico]

How did you search it on BBB? I got zero results