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I am trying to figure out why you are going FHA. The only thing I can figure is prior short sale or foreclosure. And if either is the case, no underwriter in their right mind would sign the loan unless all was 100%. It's the other folks working on the file trying to take shortcuts and why you are sending in docs over and over.
We went FHA because the type of mortgage is a IDHA program with a subordinate loan that serves as a DP assistance. We didn't have 5% to put down for a conventional so we used the IDHA loan that gives 2% we were just responsible for the 1% The home was being sold by a trustee of an estate, it wasn't a short sale or a foreclosure.
We closed Tuesday 3/31/15 with no issues other then the title company forgetting to add our 2nd mortgage on the HUD-1 settlement, they rectified that issue within 30 mins and all we had to bring to closing was $30.17
Well I got my commitment letter almost two weeks ago with only three items listed as necessary from me. Even after that they requested another years bank statements two additional letters of explanation. None of which was listed on commitment to fund letter. Very very frustrating. I had to get another extension, however I DID finally close yesterday. I'll tell you this process has made me never want to buy another house! I worked last night so couldn't even spend my first night at home :-[ I don't know what makes it so so difficult but it sure is discouraging!
I'm entering hell now. After shopping rates for 3 days with 3 different lenders I ended up locking in with my credit union. Of coarse now they want me to have roughly $6000 more for reserves and the mortgage officer insists I "just ask mom for more money" since I got a small amount from her for down payment. She seems to think its just too much work to use my 401k money. Will keep everyone posted as it goes along. Projected closing date: May 15.
We went FHA because the type of mortgage is a IDHA program with a subordinate loan that serves as a DP assistance. We didn't have 5% to put down for a conventional so we used the IDHA loan that gives 2% we were just responsible for the 1% The home was being sold by a trustee of an estate, it wasn't a short sale or a foreclosure.
We closed Tuesday 3/31/15 with no issues other then the title company forgetting to add our 2nd mortgage on the HUD-1 settlement, they rectified that issue within 30 mins and all we had to bring to closing was $30.17
Okay, you actually are doing a state program that is funded by tax free bonds. They use FHA mortgage insurance in conjunction with the 1st trust. It's a good way to get in with very little down. Little pricey on th MI, but if the payment isn't a kiiler, it got you where you wanted to be. Congratulations.
I'm entering hell now. After shopping rates for 3 days with 3 different lenders I ended up locking in with my credit union. Of coarse now they want me to have roughly $6000 more for reserves and the mortgage officer insists I "just ask mom for more money" since I got a small amount from her for down payment. She seems to think its just too much work to use my 401k money. Will keep everyone posted as it goes along. Projected closing date: May 15.
Most loans require reserves - not all programs, but most. Credit unions offer lower interest rates and lower mortgage insurance than their counterparts. The reason they have lower mortgage insurance rates is their stance on reserves and higher credit requirements. (The reason they have lower rates is the fact they are a non profit...no paid stockholders or board of directors). Anyone making a move without reserves (minimum 3 months) is flirting with disaster. The ruling on using the 401 for reserves, the amount counted is 60% to 70% of the vested amount (depending on applicant's age/penalty or no penalty) net of any loans, and then proof the applicant doesn't have to die or quit their job to access (most state employee plans and teacher plans are that way). So yeah, a gift letter may be a bit easier. But if its too much hassle, just go with one of the other lenders. There's a cost for everything, including good rates.
I just wanted to give another good underwriter story. We got pre-qualified and supplied some basic info, no w2's or taxes or anything. We then made our offer on 3/23 that was accepted.
They had us fill out an application with w2's, tax info, etc. We then locked in at a pretty good rate. We got the house inspected 2 days after the offer. Everything good. The Appraiser did his thing and it came back exactly at the offer. The credit union gave us quotes from the major insurance companies, title insurance came back fine. It went to underwriting, we didn't hear anything for a week.
Then yesterday we heard that we were cleared to close. Next week we will close. Our estimated closing date was 4/20, We will close a week early. Total time from offer to close is going to be 22 days. (baring any last minute issues, which I bet will happen just because everything has been too easy)
Our underwriting and entire loan process was a complete breeze. We never even had to go to the bank, just spoke over the phone and emailed documents. They mailed us the paperwork, we signed and mailed it back and they only needed 2 months worth of bank statements. Our lender was amazing, always there to answer questions and responded to emails within minutes. The appraisal was done within a week of our offer being accepted and we were cleared to close 3 weeks later (ahead of schedule!) Of course we were worried about all of the horror stories, but it turned out to be incredibly easy. It seems like when it comes down to it, as long as you have your act together and your lender isn't completely incompetent it really isn't that difficult.
Can you guys posting with good stories give us names of lenders? I'm hoping to re-finance within 6mo-1yr and would really like to know who you guys are having good experiences with!
Hehe, I just got a question from my underwriter that makes me... The question is why we paid estimated tax in 2014 and in our 1040 now showed a tax refund. My answer, the estimated tax was paid based upon our projected income and expense by our accountant. When we were doing our actual taxes, after CPA did his calculation based upon IRS code, it was determined that we paid too much so a refund was issued. Sounds good?
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