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Old 11-01-2011, 11:09 AM
 
4 posts, read 124,436 times
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Last tuesday I applied for a mortgage. By wednesday I had turned in all required paperwork, including tax returns (2yrs), 30 day pay stubs.

Problem is my debt/income ratio was high because a car note. This car is my boyfriends, and comes out of his account monthly. We provided his bank statements showing proof of that. Problem is that they normally req this for at least 12 months, but this car is only 7 months old and has came out of his account since the first payment.

The LO sent this to underwriting to get approval on the car note. Its been a week! Normally how long does this take? Do you think they will waive the car note and approve me?

any insight is appreciated!!!! Thanks!
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Old 11-01-2011, 11:48 AM
 
104 posts, read 150,172 times
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We are in the process of building a home with an USDA loan and was told that it could take 7-10 business days for USDA approval. I know to get approval with an high DTI usually requires solid reserves or credit score 680+ along with a few other exceptions...
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Old 11-01-2011, 11:51 AM
 
Location: Lansing, MI
2,720 posts, read 3,475,196 times
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USDA loans have 2 steps.

First, the underwriter has to approve. This is with the LO and can take anywhere from several days to over a week. The underwriter will look at the overall package, kick it back to the LO if they have any questions or need you to "explain" anything (like why you want to move to that area if it results in a long commute, where non-wage deposits came from, etc). Your LO should be following up with the underwriters and keeping you in the loop as to what and when to expect final approval.

Second, once approved by the underwriters, the package, including your mortgage approval and the property appraisal, goes off to USDA for approval. They will look over the total package PLUS look over the property you want to purchase to confirm it is an approved property. This process can take 1-2 weeks depending on how backed up that office is. The USDA I attempted to get hit about 2 weeks, and was ultimately denied by USDA at the final hour, a week after my scheduled closing date.

USDA may approve you as the borrower, but may deny the property as what happened in my case. Overall, it is a stressful 30 days worth of waiting.
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Old 11-01-2011, 02:04 PM
 
4 posts, read 124,436 times
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why did they deny the property?
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Old 11-01-2011, 02:07 PM
 
Location: Lansing, MI
2,720 posts, read 3,475,196 times
Reputation: 2721
Quote:
Originally Posted by jodier80 View Post
why did they deny the property?
Long story that is not relevant to this thread.
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Old 11-01-2011, 03:13 PM
 
Location: Fort Mill SC
188 posts, read 193,472 times
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Definetly make sure you are qualified. They denied us about 1 1/2 weeks before our closing date, although they had the paperwork for 6 weeks! They said we made several hundred dollars over the alotted amount. Long story short make sure everything is in place so you dont have any surprises on your end! We ended up getting our house with an FHA loan but it was such a stressful time. Good luck!!
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Old 11-01-2011, 03:48 PM
 
4 posts, read 124,436 times
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Thank you I know I qualify. The question is will the car note be omitted? I was told they normally like for there to be a 12 mo. history of the other party making the payment. But this car is only 7 mos. old. So a 12 mo. history is not possible. I hope they waive it. If not I guess I will have to wait a little while longer
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Old 11-01-2011, 04:17 PM
 
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I'm certainly no expert but is the car in your name? If it is then I would think they have to count it as part of your debt.
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Old 11-01-2011, 04:20 PM
 
Location: Lansing, MI
2,720 posts, read 3,475,196 times
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Quote:
Originally Posted by jodier80 View Post
Thank you I know I qualify. The question is will the car note be omitted? I was told they normally like for there to be a 12 mo. history of the other party making the payment. But this car is only 7 mos. old. So a 12 mo. history is not possible. I hope they waive it. If not I guess I will have to wait a little while longer

Whether or not it is taken into consideration depends on the underwriters your LO works for. Not USDA.

The only part USDA plays into the whole thing is whether or not they are willing to back up what the underwriters approve. Gotta get the underwriters on board before USDA even looks at it.

Bottom line, debt liability is still debt liability, whether it is 7 mths or 7 yrs in age.
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Old 11-01-2011, 06:13 PM
 
4 posts, read 124,436 times
Reputation: 18
yes it is in my name. But my LO said it is not uncommon for them to waive debt when there is another party involved that is making the payments. The catch is that they usually require 12 months at least of the other party making the payments. But my LO seems to think they will waive the note bc, he has been responsible for the payment since the car was purchased. I am waiting on the underwriters to give their approval, apparently they have been busy since this is taking longer than expected.

I just wanted to see if anyone else has been through this before?

Thanks everyone
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