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Underwriting denial, rare situation.

Posted on: 30th May, 2013 08:39 pm
I am going to tell my story and see what advice I get.
So back in November we were approved to build a house on 5 acres of land that we owned. The company we used to build our house did not require any interim financing or construction loans. The land was also used as collateral. In December I was unexpectedly laid off from my job in the oil and gas industry. I let my loan officer know and told him that I would keep him informed. I started a new job a few weeks later in the same general type of work but a lot less money as it was not in the same industry. I am still looking for better work but nothing has come up yet. When the time came for us to start closing, I am not making enough money to support the loan. The previous loan was a VA loan so I had them switch to an FHA and add a cosigner. This was at the beginning of April. I was informed on Apr. 22 that the loan was in underwriting. I was informed today May 30 that it was denied because my current employment is through a temp agency and that its not considered full time even though it is a full time job. My concern is that I have 5 acres of land that they valued at $25k but its really worth closer to 35k that goes to them because they cant make the loan work. Also, why does it take over a month for them to tell me that the loan wouldn't work? I should also say that the home building company owns 49% of the mortgage company.
Hi xero,

As the underwriting process started off late so the lender was late in informing you that the underwriting wasn't successful. Your employment is really a big issue for you in regards to your loan application.

Thanks
Posted on: 30th May, 2013 09:27 pm
Your employment status is the main issue here, though i see a conflict of interest between the home building company and the mortgage company.
Posted on: 01st Jun, 2013 06:25 am
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