@super99 wrote:
My husband and I put a contract down on a new construction home 7 months ago and the builder required money down to begin building. We were a little short on our deposit and made the stupid decision to use an installment loan to cover the difference. We have since paid the installment loan off but we are now coming up on the stage of working with the loan coordinator to begin the closing process. I am anticipating conditions that will come back and I know this will come up. Has anyone seen a situation like this? I want to be proactive and have a LOE ready for when they ask for deposit funds tracking. Original pre-approval was for an FHA loan but credit scores have significally gone up so we may qualify for a conventional loan now. Any suggestions?
This shouldn't be a issue. How short were you?
A simple LOE stating you used an installment loan that has since been paid off plus supporting documentation should take care of it.
