Panicking- credit supplements

[Anonymous]

Hi all, lurker here and very nerve wracked first time homebuyer.

Our situation in a nutshell- buying a home with a VA loan, 0 down. Husband has a just barely qualifying score at 603 while I'm sitting at 760. He cosigned a student loan for his sister 6 years ago, and of course she defaulted (yes dumb move on his part, he's learned his lesson). Was never sent anything saying she wasn't paying so we found out only by looking at his credit report. The loan says charged off on his report. He also has one acct that still says he owes money from a furniture store- we have contacted this creditor NUMEROUS times and they say they have no record of him or any debts (but yet it's still on his report!! Ugh!!!)

About 2 months ago, he opened investigations with all 3 credit bureaus to get all paid items removed. Worked well except for again- the furniture store. Equifax said they received no verification or response at all from them.

Fast forward to today. We are still in UW, closing is in 8 days. The UW has requested a credit supplement on both the furniture store and his sisters student loan. To expedite the process, they asked us to call equifax mortgage and do a conference call with the creditors. My husband did this and they were unable to get a hold of anyone at either one... The furniture store claims they don't do transfer calls and his sisters student loan lender is just FUBAR (long story, they have been a nightmare to deal with). Equifax said they will report that they were unable to verify anything with either creditor. My husband and I DO have the original loan papers showing his signature that he is the cosigner and not Peary loan holder.

My question- when a lender can't verify a credit supplement or they don't hear back from the creditors- can this kill our loan and get us denied?! Everything else is good including appraisal, title, etc.... We are worried sick. Surely they don't bring us this far to deny us over not being able to verify something from a third party. It's not our fault these creditors are being uncooperative. Can anyone tell me if I need to stop packing?

[ShanetheMortgageMan]

What is the reason they need the credit supplement in the first place?

[Anonymous]

The email explanation from our LO- accounts on both your credits that were either disputed, transferred or showing past due. We need those updated to show they aren’t in a worse case status & figure out what the actual minimum payments are as well as terms on some of the student loans.

Is this normal? Like I said, the loan is charged off although for some reason it says paid on the credit report. Both of these companies have been very uncooperative and disorganized and I doubt the processor will ever get the actual info they need. I wish they could so we could just move past this! Can our loan hinge on something like this? TIA.

[ShanetheMortgageMan]

When a credit supplement is requested, there is specific new information that the underwriter is looking for.  The email from your LO is vague.

The terms on the student loans can be verified by you getting a letter from your creditor stating what the payments are, or when they are deferred until (if that is what needs to be verified).  If an account says charged-off, then it's charged-off and no payment is calculated.  Same with a collection, no payment is calculated from the credit report.  Your LO's response doesn't make a whole lot of sense.