Need LOE help please!

[Anonymous]

Alright guys this forum has been such an INCREDIBLE blessing for us trying to buy our home. After a few bumps these past couples weeks are finally seeing some light.

We finally found a knowledgeable lender who has seem to find a loan we have a good chance of approval. The auto underwriting system has approved us (yay!) we just need a letter to explain a 9 month employment gap.

This is for USDA. Lo mentioned I don’t have to get specific.

Here’s what happened. In may of 2017 husband left job. We moved across the country. We were trying a farm business on the property we owned(she mentioned to leave this out). During these 9 months we had some family crisis like a serious fatal car accident I was involved in, and serious health issues that required husband to have a couple hospital stays. We kept up on all financial obligations during this time. We decided to come back to the same area we lived previously after all that was straightened out and husband is doing the same exact job he had before we left just different company. Income is as stable as it was for over 6 years prior. So we are just picking up we’re we left off.

How can I make this as “underwriter friendly” as possible to get a good chance of full approval?

Thanks!

[JVille]

LO is correct... don’t mention the Business/Farming Adventure. You can say you moved across country (true??) for an employment promise (your farming gig) and upon arrive you realized you made a huge mistake. You then ended up in an Accident (car?) and needed your husbands assistance.
After the medical assistance every one is fine and thank goodness it didn’t take too long to find the perfect job once you got back home. Also fortunate you had Savings to see you thru.....

Have not a clue if this is your situation but it’s a start. Do not mention a Business on land you own or still own!!!!! Do you own this? Does your tax returns reflect a Business???? Oh dear!

Keep it short and simple!

[CreditInspired]

OP

Can you please have one thread regarding everything. It's confusing going back and forth reading different aspects of the story?

Thanks

[Anonymous]

The farm business was really just a farmstead project we hoped to make money off (organic garden, beekeeping, maple tapping etc.) yes it was on our land we currently own but never made any money and was never an official business. We prettty much just got it ready and then sh** hit the fan for us. 

Sorry for for all the threads🙈. I’ll stick to this one only from now on. 

Thanks !

[homeloanexpert]

Sorry to hear about the accident. Your LO should have assisted you little better. I usually have my clients write a timeline with the facts and have them to bounce the letter to me so I can elaborate if necessary and I bounce it back for final approval and signature. Keep it simple without going into the weeds. Everyone can imagine going through an accident like that would have some effect on working. Try writting your LOE and send it in a Word Doc for your LO to read.

NOTE: The USDA RDL has a guideline regarding gaps of employment. If you had a gap more than 30 days, the Underwriter will usually require at least 6 months on the new job unless you can request an exception due to extenuating circumtances. FYI, explaining that you had a failed farm business could open up pandora's box but might explain the gap.

Best wishes to you!

[Anonymous]

Thank you!
My LO has been helpful. She says she’s in touch with an underwriter friend in the state for USDA and that she’ll bounce this off of to see if there’s anything else I can do to get it approved. We already got GUS approved so she said an explanantion letter is all else that’s needed and we have a good chance.

She said FHA is strict on 6 months gap but USDA guidelines doesn’t say anything about 6 months just that you have to have stable employment for 2 years but if rejoining workforce after extended gap than you need an appropriate explanation.

I used JVille advice and wrote in the letter that we moved for an employment promise but realized it was a mistake and then all the other stuff happened. Now we are back where we were and have the stable prosperous life we had for 6+ years before the gap. Pretty much picking up where we left off.

[Anonymous]

Well my LO said the letter is perfect! We have some disclosures to sign and then underwriting next I assume. It’s up the the lenders underwriter not USDA if they’ll accept the LOE. 

I spent all day reading the guideline book for USDA guarantee. Seems like this LO is a lot more knowledgeable than the others we’ve dealt with and we should be in good hands. 

so if this clears the underwriter than it gets sent to USDA for final approval. I hear it goes pretty quick once they get it.

so much uncertainty but feeling good about this. Praying we get our home!