Is lender refusing FHA

Anonymous · ‎09-20-2019

I will keep this condensed. I went to my local bank for a mortgage. I have been with them for 10 years. We talked conventional, usda,fha. The lender submitted with FHA. I was preapproved for $75,000 because of DTI, with house payment would put me at 51%. I have since refinanced my car saving $100/mo. I am looking for a fixer upper to get the most bang for my buck. I asked her about fha 203k and she said “there is no such thing.” But it was the way she said it... I have money saved for a downpayment. Then I went to two more banks in my area and they both said I could apply for fha 203k. So I guess my questions are why would a lender not want to do fha203k and her telling me no program exists was that illegal. She never said “ we don’t like to do those loans” which I would have accepted better than her being dishonest. Any advice is appreciated.

chiefone4u · ‎09-20-2019

Not all banks offer every flavor of loan. The banks response may have been because they don't offer it.

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Anonymous · ‎09-20-2019

I hope so. I wish she would have just said that if that was the case

Anonymous · ‎09-20-2019

That was a very unprofessional response in my opinion. There's a huge difference between saying there's no such thing and saying they specifically don't offer it at that bank. I would be very unhappy with that, as everyone knows there IS in fact "such thing." Maybe it's because I am frustrated with our process right now, but that answer she gave you really rubs me the wrong way.

NC_Mtg_Loaner · ‎09-20-2019

It is a very complex loan program and process that comes with higher risks and costs that some lenders just don't offer. Continue shopping around if that is what you'd like to do---however, you definitely want to learn more about the program--the process from origination to finish isn't as easy as you might think it's' going to be so you want to talk with an experienced LO that knows what they are doing and can guide you through the process.

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Anonymous · ‎09-20-2019

Thank you for taking time to respond.

Anonymous · ‎09-20-2019

I agree. I would have accepted more if she said we don’t offer at this bank. I could have respected that. But she made it out like there is no such product.

Anonymous · ‎09-20-2019

I emailed my LO and asked her in a way where her response had to be yes or no. She finally admitted after being asked verbally 3 times “we do not do fha203k, other lenders may but I am not sure which ones.” I wish she could have said that from jump, it would have saved us a lot of frustration.