FHA Loan and Strange Requirements (loan officer, approval, credit, upfront)

[bissit]

I searched the forum and did not find anything to answer my question. I am moving to St. Louis and my job will come with me (I work remotely anyway and W-2'd). I've been at the job a year and my boss was my husband. He's still my boss but we are no longer married. However, when we parted, we decided to keep him on my bank account b/c I wanted to buy a house and needed the 30 days (we parted about 6 weeks ago). I sent all info to the loan processor and he said this looked solid. He emailed back (no phone call) saying he wouldn't do the loan. This is after 2 weeks and three days with no phone/email returns. The reason is that my boss is also on my checking account. I offered his W2's to prove his employment and had them call the corporate office to verify us both. They would not do the loan. What's the deal? We were upfront about this and I told them exactly the situation. I'm trying through another bank but does this sound correct?

[chet everett]

Basically a lender can decline to underwrite for just about anything short of the color of your skin, church you go to and other "protected" categories.

As lenders have burned bad by being fast and loose with income verification I can completely understand why they are uncomfortable with a less-than-arms-length status that you present.

Your best bet is to find another lender, I would try really big ones, whose software approval process probably does not give two hoots about the name on your checking account, as local ones (maybe a credit union) where there is a possibility that they will hold your loan in a portfolio and not try to resell it, standards are then only what they have "in house" and you could definitely explain this situation to a rational human instead of someone driven by fear and suspicion...

[bissit]

Thanks Chet. I totally understand their issue as well but I really wanted to go with a local bank and get personal service. I'm actually glad they denied me because the email I received from loan agent was full of misspellings and grammatical errors. That was so unprofessional.

[VictorBurek]

I would suggest that when you submit the loan, have a letter of explanation with it. What would look better to you, if you were the lender underwriting the loan. You get this loan package, and reviewing it, you see all the info you mentioned above. It looks suspecious, as you stated, you understand their issues. Now, lets say you get this loan package and the first item you see is a letter explaining the situation. Less suspecious. Also, have the ex write a letter of explanation as well. Make sure the LO includes these letters of explanation with the loan package.

I am betting that you explained all of this to your loan officer as underwriters do not speak to the consumer. The LO figured it would be no problem. The underwriter though was suspecious so the cover their tail by denying. Keep in mind, you will have to provide bank statements with any lender you go with, big or small. They will see the names and they will question it. Also, have the

[bissit]

Thanks for the help! I found a loan officer at another bank that was totally helpful and explained my situation. I will just have someone else in the company fill out the employment verification form as the new l.o. suggested. He said they don't care who is on my bank statement as long as is name does not appear in any other paperwork. This makes sense. I just wish the other l.o. had been more helpful. But they lost my business, both with the mortgage and my checking/savings.