Approved for FHA loan BUT not yet approved on Streamline K portion?

any0324 · Joined: 14 Oct 2008 Posts: 2 2.18 Dollars($)

I applied for this loan and brought in the following day several estimates for work (to be) done. This after the LO said a Streamline K was easy to incorporate into the FHA loan process.

I satisfied a few subsequent conditions, and was told I was approved and all conditions cleared. I asked about the Streamline K items and the LO said it was still in underwriting.

The amount is only around 15K and this second underwriting could end up delaying the closing. These are not unusual items (floor coverings, upgrade of electrical panel, adding second zone AC.

From what I read, it is submitted as a package, and should not take 3 weeks to get an answer. If any DE's out there can chime in here, I would greatly appreciate it.

Roland

smithsussane · Posted: Tue Oct 14, 2008 8:54 pm Post subject:

Hi any!

Welcome to the forums!

Yes, the items that you have mentioned fall the Streamline K category. Generally the closing for a streamline loan can take place within 45 days. You can speak to the lender if he can do the things quickly.

Feel free to ask if you have further queries.

Sussane

any0324 · Joined: 14 Oct 2008 Posts: 2 2.18 Dollars($)

Thank you for your quick reply.

Let me be more specific. The LO said I was approved on the main loan, but awaiting approval on the Streamline K items. I have a loan committment with only the boilerplate conditions in the amount of
the main loan alone.

My question is specifically:

Does the Streamline K portion of the loan need to be underwritten seperately, or perhaps did the LO err in not submitting the 203K items in a timely manner.

I feel that after receiving (manually underwritten by the way) approval almost 3 weeks ago, how could $15K in upgrades delay a loan for this long?

Thanks

Roland

smithsussane · Posted: Tue Oct 14, 2008 9:52 pm Post subject:

Hi any!

Welcome back to the forums!

Generally the loan should be underwritten at the same time and not separately but again it may vary from lender to lender. There can be certain documentations for which its delaying. You may ask the lender the cause of the delay as well. As a borrower you have the right to ask that and see what he tells you.

Feel free to ask if you have further queries.

Sussane

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