Posted on: 15th May, 2008 05:54 am
Fha loan required. It's been over 2 weeks the underwriter is reviewing my application and I've not received any response. I'm getting frustrated. The loan is around $200,000. I can put doewn 5%. As for my credit, I have 4 tradelines opejn for 6,7, 6 months and a car insurance (if you call it a tradeline) open for 10 months. My income is 125K yearly and I am yet to pay $1000 in student loans. I have been through charge-off during the 1st year of my college because I couldn't afford to pay 2 credit cards that I have taken. My current scores are 550, 590, 594, is there any chance of fha loan? or do you suggest other?
two weeks is not an extraordinary amount of time for a file to "be in underwriting." believe me, as a concerned loan officer whose files don't always get underwritten as promptly as i would prefer, i know that to be the case.
your credit scores are sufficient for approval, but the duration of your credit may be problematic. by the same token, it would appear that your income would help override any concerns about the credit background. i gather that someone asked you to write a letter of explanation for the trouble you've encountered in the past - that's always a wise thing to do. it allows you to state your case for their granting of the loan and to try to excuse your credit lapses of the past. based on income, you certainly have the ability to repay a loan of $200000 - assuming your other obligations are reasonable.
consult with your loan officer to see if there is more that you can contribute to the file that will assist the underwriter; and request that your loan officer push for you so that a decision can be made a little quicker.
your credit scores are sufficient for approval, but the duration of your credit may be problematic. by the same token, it would appear that your income would help override any concerns about the credit background. i gather that someone asked you to write a letter of explanation for the trouble you've encountered in the past - that's always a wise thing to do. it allows you to state your case for their granting of the loan and to try to excuse your credit lapses of the past. based on income, you certainly have the ability to repay a loan of $200000 - assuming your other obligations are reasonable.
consult with your loan officer to see if there is more that you can contribute to the file that will assist the underwriter; and request that your loan officer push for you so that a decision can be made a little quicker.
Most lenders that do FHA got swamped last month and 2 weeks time to get into underwriting was pretty common. Also with your scores and length of credit it will need to be a manual underwriting so it might take even more time. Make sure your ratelock doesnt expire and talk to your loan officer to see what can be done to get this expedited.
It is common for a Loan Officer to have to author credit for your type of profile. Usually, underwriting is looking for approximately 3 tradelines paid as agreed for at least a year. They do not need to show on your bureau but must be collected and produced to underwriting.
If for whatever reason you do not have utility bills, cell phone, gym membership, ect you may use to show the satisfactory payment history for the year, I would suggest a non occupant co- buyer to help strengthen the application.
Good luck, I hope at least some of this helps! The above posters have also provided very good insight..
If for whatever reason you do not have utility bills, cell phone, gym membership, ect you may use to show the satisfactory payment history for the year, I would suggest a non occupant co- buyer to help strengthen the application.
Good luck, I hope at least some of this helps! The above posters have also provided very good insight..
Simply put -- if you any late payments showing on your credit report within the last 12-months, you will have a problem.
Also, you should know that your FHA-approved broker has a variety of banks to go to with your application -- most are using a low 580 score as their cut-off. And, if you have difficulty getting past an underwriter at one bank, your loan officer can go to another lender. Your letter of explanation in your file may be your strongest leverage with any FHA underwriter.
If you have made application at a bank, you will have to deal with their underwriter's schedule, and your loan officer is now probably out of the picture.
Good Luck! Be patient! Your loan officer should be holding your hand, though.
Also, you should know that your FHA-approved broker has a variety of banks to go to with your application -- most are using a low 580 score as their cut-off. And, if you have difficulty getting past an underwriter at one bank, your loan officer can go to another lender. Your letter of explanation in your file may be your strongest leverage with any FHA underwriter.
If you have made application at a bank, you will have to deal with their underwriter's schedule, and your loan officer is now probably out of the picture.
Good Luck! Be patient! Your loan officer should be holding your hand, though.
