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Hello all. I was pre-approved a few months ago for a mortgage in TX (FHA). I'm a RN currently residing and working in Illinois. I have been hired to work at a hospital in Houston and I plan to move there once I have secured a home. Therein lies the problem. My lender has just informed me that the underwriter will not fund the loan until I have worked for 30 days. This is impossible as I cannot commute from Illinois to Texas for 30 days! For three months I thought everything was in order, so I recently accepted a job in Houston. When I decided to go ahead with the house hunt, that's when I received the news.
My credit score is 590. (I'm not a bum, I had serious complications from a high-risk pregnancy and spent months in the hospital last year.) I'm really in a bind as I have already accepted a job in Houston. Anyone know of any lenders who may be able to help me? Thanks in advance.
No lender is going to be overly eager to give a loan to some one new in town and with challenged credit. I would try to comply with the regs that the lender that you are working with has set forth.
I agree. This is a common guideline. A lot of people can get a offer letter but never actually start the job. You are asking the lender to base your approval on income that you don't actually receive yet. Long term hotels (i.e. Residence Inn) are great for this. Move there... put your stuff in storage, work for 30 days, then close on the house. I know it sounds like a pain, but it will be the best way and it is only for a month.
FYI - this guideline would be exactly the same even if your score was an 800. It's a standard rule and the Loan Officer should have known it up front.
Thanks guys. If they seller isn't willing to push closing back by about two weeks (and I will understand if they don't) then I'll just go down after I get a few things in order and do just that. It's a bit of a challenge, though. I'm a single mom with a 4 year old and a five month old.
You both are absolutely right. I can totally see where they're coming from.
I worked thousands of relocation loans for Countrywide and BofA. All a lender needs is the Offer Letter, and then a VOE showing you have started work at the new location. Technically, at that point they CAN fund the loan, and hold it on a warehouse line until they get your first paystub.
However, different underwriters, and investors, have different guidelines and comfort zones. In the absence of "layered risk," you SHOULD be able to close after working for one day. But if your lender is freaking, and you don't have the time or inclination to change lenders, the next question is: are you paid once a month?
Could your employer cut you a check after the first week, an official one with a paystub?
Bottom line, it's one of those things that has a tremendous amount of variance, as far as interpretation and enforcement of guidelines.
Can the seller review the approval, and let you in 1 month early for an agreed-upon $ amount?
If not, Extended stay will cost you $800-900 a room.....
It is a common guideline nowadays. For years, we would also close loans, sit on them, get the first paystub post closing. The problems is, many time the buyer didn't send the first pay stub and they are much less inclined to be responsive after closing. Because of this, in addition with the general tightening of guidelines, fewer lenders will allow this practice. Further more, the OP indicated that her credit is a 590 and it is a brand new job (not a relo with the same company)... these additional factors present layers of risk already present on her file.
Pfhtex makes a good point though... try to see if the seller will let you move in immediately, rent for a month, then complete the transaction. Not sure what their situation is, but they might be willing to.
God, I wish we were in the same room. Why don't you ladies do an ounce of research, call around, talk to someone with a CHUMS number. Moderator cut: not necessary
Or you could look it up Moderator cut: not necessary www.fha.gov:
Projected or hypothetical income is not acceptable for qualifying purposes. However, exceptions are permitted to this rule for income from cost-of-living adjustments, performance raises, bonuses, etc., which are both verified by the employer in writing and scheduled to begin within 60 days of loan closing. If a borrower is about to start a new job and has a guaranteed, non-revocable contract for employment that will begin within 60 days of loan closing, the income is acceptable for qualifying purposes. The lender also must verify that the borrower will have sufficient income or cash reserves to support the mortgage payments and any other obligations during the interim between loan closing and the start of employment. (This condition may be appropriate for situations such as teachers whose contracts will begin with the new school year, or physicians who will begin residency after the loan is scheduled to close.) However, if the loan will close more than 60 days before the borrower's employment begins, the loan is not eligible for endorsement until the lender provides a pay stub or other acceptable evidence that the borrower has begun the new job.
Moderator cut: Personal attack
Last edited by Green Irish Eyes; 07-15-2009 at 10:01 PM..
Reason: No personal attacks
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