FHA loans - Need help! (loan officer, approved, credit, fee)

[Lion313]

Hello,

First time poster, been reading this forum for over 2yrs.

My wife and I are trying to get approved for a 30/yr fix fha loan. We went through a KB Homes and was preapproved by BofA(their preferred lender). Now the house is built and our closing date WAS Sept. 10th. BofA claims that since my wife's student loan deferment ends less than 60 days, they cannot approve the loan until she get a new deferment that stretches 1yr pass closing. We confirm with Sallie Mae that she's eligible for an additional deferment once her current deferment ends. BofA claims that its not them holding up the deal but FHA requirements. You would think that BofA is knowledgeable about these situations???

We have a due date to vacant our apt. and now BofA wants to hold us up.

Is this common? Can anyone else enlighten us on our situation because its stressing us out!

Thanks!

[zulu400]

This is common, I mean the closing dates being moved around.... its tough to deal with some Landlords.... as you have to pay an extension fee in addition to the increased rent for the short period. I am going through this and it sucks big time.... but hey Look at the bright side, you are buying a house to get away from this right ?
Make sure you get all the paperwork done and just relax....

[TimtheGuy]

Originally Posted by Lion313

Hello,

First time poster, been reading this forum for over 2yrs.

My wife and I are trying to get approved for a 30/yr fix fha loan. We went through a KB Homes and was preapproved by BofA(their preferred lender). Now the house is built and our closing date WAS Sept. 10th. BofA claims that since my wife's student loan deferment ends less than 60 days, they cannot approve the loan until she get a new deferment that stretches 1yr pass closing. We confirm with Sallie Mae that she's eligible for an additional deferment once her current deferment ends. BofA claims that its not them holding up the deal but FHA requirements. You would think that BofA is knowledgeable about these situations???

We have a due date to vacant our apt. and now BofA wants to hold us up.

Is this common? Can anyone else enlighten us on our situation because its stressing us out!

Thanks!

I always count "deferred" student loans against a borrower's income. It is too hard to prove that they will be deferred for x # of years. Don't they have to be deferred longer than 1 yr. not to be counted against you?

Does counting the student loan payments against your income bump you out of qualifying?

[seeniorita]

Yes, FHA financing does require more documentation and procedures than conventional financing. However, you get the benefit of a 3.5% downpayment vs. 5-10%. I always prepare buyers that closing dates are "targets" and not written in stone. Always be flexible with moving dates and have a backup plan. Talk with your landlord to see if they are willing to work with you. Congratulations on your new home and best of luck!

[Lion313]

Thanks for the info. I guess its the waiting game. I will update you guys soon.

[Lion313]

Just to update everyone. We finally closed on our home and moved in over the weekend. My advice: stay persistent with your loan officer and provide any paperwork they need asap.

What a relief! Now lets' see how long it'll take to recieve our tax credit.

[chet everett]

Originally Posted by Lion313

Just to update everyone. We finally closed on our home and moved in over the weekend. My advice: stay persistent with your loan officer and provide any paperwork they need asap.

What a relief! Now lets' see how long it'll take to recieve our tax credit.

It does not matter if you have the most diligent and organized lender in the world (or some terrible scatter brain...) there is quite a bit of physical paper that goes with most loans and if anything is not "in the file" that file will sit on someone's desk collecting dust while the completed files move on to funding.

Staying in touch with your lender's representative is imperative.