home mortgage (rent, credit card, loan) - Illinois (IL) - City-Data Forum

pttptrsn · 04-11-2011, 08:38 PM

This is a bit complicated. I am buying a home FHA. My ex gave me $2500 cash as a gift toward the down payment. However, because of personal reasons I pulled the money out cash and gave it back to him. Well, the processor said it was done wrong and that I should have made a cashier's check to him. Well, too late. Then I got a gift of $3000 from my mother in law but took it out because I had to pay bills with my check that was in there. The processor keeps losing paperwork and asking for this and that (some of it none of her business which even the bank said) and I had to pay my credit card bills and such or I wouldn't get a loan. I pulled the $3000 out because I didn't want to dip into it. I still have it in cash. Well now, the processor says because I did the first transaction wrong I have to put another $1000 in my account (she says that's what the underwriter says). That would be fine, I could get another $1000 but from my bank statement they (the processor and underwriter) will see that I took the money out again. Even though I did it for the above reasons and didn't want to be late with my bills, I am in a jam now because they will see I pulled money out yet again. Any way out of this? I got my final approval and I don't want to lose this house. The processor is a very difficult person to deal with and keeps losing paperwork and everything is taking longer than it should. I can't tie my money up forever. Is there a way out of this? Help!

linicx · 04-12-2011, 12:13 AM

When you take out a loan FHA wants to know your income, debt and assets, nationality, age and other questions. If you have $X dollars in your savings account they want you to leave it until the loan is closed. If you do not, they have to re-write the papers every time you pull money out. If this woman keeps losing papers, your seller may back out of the contract. I would be talking to her supervisor.

My FHA re-fi closed in 10 business days because it was in-house.

sunnyandcloudydays · 04-12-2011, 04:05 AM

Quote:

Originally Posted by pttptrsn

This is a bit complicated. I am buying a home FHA. My ex gave me $2500 cash as a gift toward the down payment. However, because of personal reasons I pulled the money out cash and gave it back to him. Well, the processor said it was done wrong and that I should have made a cashier's check to him. Well, too late. Then I got a gift of $3000 from my mother in law but took it out because I had to pay bills with my check that was in there. The processor keeps losing paperwork and asking for this and that (some of it none of her business which even the bank said) and I had to pay my credit card bills and such or I wouldn't get a loan. I pulled the $3000 out because I didn't want to dip into it. I still have it in cash. Well now, the processor says because I did the first transaction wrong I have to put another $1000 in my account (she says that's what the underwriter says). That would be fine, I could get another $1000 but from my bank statement they (the processor and underwriter) will see that I took the money out again. Even though I did it for the above reasons and didn't want to be late with my bills, I am in a jam now because they will see I pulled money out yet again. Any way out of this? I got my final approval and I don't want to lose this house. The processor is a very difficult person to deal with and keeps losing paperwork and everything is taking longer than it should. I can't tie my money up forever. Is there a way out of this? Help!

Wow that is really confusing and i spent 15 years as a loan officer.
but the FHA can be a pain in the aspen. Your UW has complete control of your file its his/her direct license that is on the line and unfortunately when you have cash gifts they precieve as red flags.

anyway can you clarify
1. Do you have gift money from someone where did it come from and is is documented by a papertrail. If so where is that money right now.

2.You want to show the gift money coming from the donors acct into your acct- you will need a trail and proof of the money trail

3.how is the 1000 coming into play- are they perhaps using this to show a daily balance

4. please let me know the 3k you had in your acct but then pulled out because you did not want to use the money?

what did the loan officer say can he speak to the UW and get specifics on the requirements to make the deal go thru for you

sunnyandcloudydays · 04-25-2011, 06:15 AM

Quote:

Originally Posted by linicx

When you take out a loan FHA wants to know your income, debt and assets, nationality, age and other questions. If you have $X dollars in your savings account they want you to leave it until the loan is closed. If you do not, they have to re-write the papers every time you pull money out. If this woman keeps losing papers, your seller may back out of the contract. I would be talking to her supervisor.

My FHA re-fi closed in 10 business days because it was in-house.

was this an fha to fha
streamline loan
sounds like it was.

knitgirl · 04-25-2011, 08:55 AM

No, the OP is purchasing a home. Are you sure you should be buying a home? There are an awful lot of things you're going to need. It sounds like you're having trouble paying the bills you have right now.

sunnyandcloudydays · 04-25-2011, 09:40 AM

I was wondering the same thing.. just doesnt seem like the op is ready
better to get your affairs in order , then purchase.

you know these underwriters are putting a microscope on everything.

DADASGIRL · 04-26-2011, 11:05 PM

I know it stings to hear that you shouldnt buy a home - especially when the home prices are to "die for"....but trust me when I say that if you pass on buying now - and strengthen your financial state, you'll be in a better position to buy later. If you arent familiar with Suze Orman - get to know her. She testifies that home ownership isnt a birthright & isnt for everyone - depsite FHA programs that lead you to believe so. She recommends having 10% or more to put down regardless of your financing. This chunk of change shouldnt wipe you out either. You should still have some savings & money free & clear for moving & house maintenance/upkeep. The point is to have SOME equity in the property - to make a home more of an asset than a liabilty. She also advocates 15-20yr mortgages simply b/c anything longer than that sets you up for HUGE amounts of interest payments.

Yes - there are deals to be had & YES not everyone is a CASH buyer. It almost seems idiotic not to buy now - unless you are 99.44% certain that you wont be leaving that home/property for the next 15 years MINIMUM. If you relocate & rent out the home to cover the mortgage, how will you buy a new home? The debt you owe on your 1st property will make it hard for someone to grant you a new mortgage. Yeah you may be able to sell the property - but not unless its HGTV ready AND priced to move. Believe me - the inventory aint going nowhere. And its only a benefit to you to go into this kind of purchase holding good playing cards.

sunnyandcloudydays · 04-27-2011, 10:08 AM

Quote:

Originally Posted by DADASGIRL

I know it stings to hear that you shouldnt buy a home - especially when the home prices are to "die for"....but trust me when I say that if you pass on buying now - and strengthen your financial state, you'll be in a better position to buy later. If you arent familiar with Suze Orman - get to know her. She testifies that home ownership isnt a birthright & isnt for everyone - depsite FHA programs that lead you to believe so. She recommends having 10% or more to put down regardless of your financing. This chunk of change shouldnt wipe you out either. You should still have some savings & money free & clear for moving & house maintenance/upkeep. The point is to have SOME equity in the property - to make a home more of an asset than a liabilty. She also advocates 15-20yr mortgages simply b/c anything longer than that sets you up for HUGE amounts of interest payments.

Yes - there are deals to be had & YES not everyone is a CASH buyer. It almost seems idiotic not to buy now - unless you are 99.44% certain that you wont be leaving that home/property for the next 15 years MINIMUM. If you relocate & rent out the home to cover the mortgage, how will you buy a new home? The debt you owe on your 1st property will make it hard for someone to grant you a new mortgage. Yeah you may be able to sell the property - but not unless its HGTV ready AND priced to move. Believe me - the inventory aint going nowhere. And its only a benefit to you to go into this kind of purchase holding good playing cards.

Good advice
However one thing i disagree with
The difference between a rate on a 20 yr vs a 30 is minimal and can more than likely be negotiated..
I would think to go 30 espicially considering the economy , you can always throw in an extra payment if needed.. Why literally trap your self into a higher mortgage payment. This way you have a little control over the payment.

chet everett · 04-28-2011, 09:29 PM

The Orman woman is big on hype and self promotion, even the stuff that she is mostly correct about is presented in a way that anyone with a tiny bit of research would see is fluff at best. Case in point is "20 year mortages" ask any lender if they do any significant business in these and the answer is NO because there is not the big rate discount that one gets for a 15 year term.

In the case the OP outlines here I agree that it seems they are stretched to just about their last dime and that is NEVER smart. Wait to buy until they have more savings. Much less stressful!

linicx · 04-30-2011, 10:41 PM

I rolled a 3-year ARM into a 20-year fixed FHA loan a couple os years ago.