Possible FHA tightening casualty-UPDATE

[DallasLoanGuy]

Who are you calling?

Have you tried a broker or banker? Or just banks?

[XAVIERSMAMA]

right now I'm going through the banks that are approved from a particular DP assistance program I want to use.  This one is a grant that doesn't need to be repaid that's $10000.  I qualify for other programs that are no interest loans, so I will exhaust all my options with the first DP program,and then if I don't find anything I will move to a broker.  I might just be trying to have my cake and eat it too.  I'm sure my file will qualify me for an affordable loan somewhere.  I'll keep you posted.

[Anonymous]

By FHA, I meant the lenders your have been applying for as far as looking at the file as risky.  As said, statistically it is a risky file.

That said, have you doublechecked that the down payment program is not the reason you are having issues getting an approval.  I looed into similiar programs out here in CA and the restrictions that the progrma held to the lenders were higher than FHA minimums and they also had their own underwriting that had to approve the file as well.

[XAVIERSMAMA]

I'll do some investigating and see but I don't think so, the people I've dealt with so far haven't even looked at my file.  I have my clear to purchase certificate from my DP program that shows I've taken the required money/credit mgt courses they require, they only send you to the lenders after you have already met their requirements, so I'll just have to wait and see.  I still have a few more lenders on the list, I think if someone would actually look at my info in totality with the BK they would see that I'm not super risky, unfortunately it seems like lenders don't look at actual files anymore they look at charts and statitistics.

[Anonymous]

actually it is the opposite.  They used to not look that much at the file as long as you fit certain guidelines (i.e 24 months post BK).

Now they look at every nook and cranny.  This is why DP programs are alot harder to use than they use to be.  They are interested in not only FICO and recent credit history, but how much of YOUR cash is going into the home, etc.  It used to be you could even use seller funded DP and not put a penny into the purchase.  But now the banks look at every file and every items. 

It's more like now adays, they are looking for reasons that they should deny loans verses in the past where they looked for reason to approve.  It is a pain, but given the current financial situation and the meltdown that just occurred it is hard to blame banks for getting picky.

[Lel]

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XAVIERSMAMA wrote:
No offense taken.  FHA doesn't consider me risky.  FHA only requires 3.5% down and 24 months clean post BK history, so I do qualify under FHA, it's the lenders that I have a problem with.

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Remember, these are minimum requirements for qualification from the FHA.  It's kind of like looking at the minimum standards for getting into college - just because you have a B average and SAT scores of 1000 doesn't guarantee admission, regardless of what the application form says.

The lenders are under close scrutiny to make sure that borrowers can be reasonably expected to make good on their loans.  They establish their own guidelines for approval which involve more detail than looking at credit scores and down payment amount.

It appears that you've got your act together, but standards have simply gotten more strict.  You might want to consider working with a knowledgable broker who is familiar with your DP assistance program; he/she might know of additional lenders from which you could theoretically get a mortgage.  It could save you the time of going to the banks individually.

[Anonymous]

I am also at my 2 years post BK  and I am pre-approved by Wellsfargo and another mortgage company just recently. I went directly to my bank (Wachovia) and personally speak to the loan officer and gave all the information he needed and check my credit/ though my mid credit score is 609. He said that the FHA/ freddie Mac /Fannie Mae requires a minimun score of 600 so I guessed I pass that requirement and was pre-approved for $180K. He gave me the pre-approval letter. He said with bk the under writer might ask for the discharged paper but other than that he congratulate me and said I am a Priority Buyer and can go house shopping? So am in good direction? I am still worried.

[Anonymous]

Like many things it depends on the state you are in and the programs that are offered in your state or locality.  I was recently approved for a FHA loan in NJ with a mid score of 617!  I go to closing on December 10th!  During the process I was approved by the bank with no conditions (I used a broker) and then forwarded to the state to be reviewed.  Well the state came back and did not approve my loan!  But my broker went back with the condition to pay off a small student loan $7000 and they approved it.  While going through the process, my broker told me that FHA had changed some of their guidelines and that is why I had to do what I had to do.  So things are constantly changing.  More people are defaulting on their mortgages and these institutions are responsible for making sure they are lending out the money as responsibly as they can based on the information they have.

[XAVIERSMAMA]

Hello everyone.

Found a lender  $140000 4.5% FHA 30 year fixed.  Now the hard part... finding a house and closing the deal!

EX 676 TU 649 EQ 648

[Anonymous]

How are you getting a rate of 4.5%? Is that with points?