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Old 10-16-2018, 04:23 PM
 
13 posts, read 10,432 times
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I got approved for a conventional mortgage with one of the conditions being that I get a letter from the Social Security Administration stating that I will receive disability payments for my son for the next 3 years. I called the SSA and they said they don't write those types of letters. They sent me the award letter, which I forwarded to the bank, and they're saying it's not enough. Why would they ask for this? I can't get my employer to write a letter stating they're going to pay me X amount of money for the next 3 years, and they're not asking for that.

This is after I paid for the appraisal, homeowner's online course, inspection, down payment, etc.

Does anyone know if this will disqualify me for ANY type of mortgage or just Fannie Mae? I had wanted to stay away from FHA for obvious reasons, and my credit is fine.

I fear that without my son's monthly disability payment, I won't qualify on my wages alone ($3400/month). The bank did not count my child support ($100/month) or my foster care income ($544/month). Front end DTI is 18, and back end is 51.

I'm in the mist of a panic attack as my lease is up the end of Nov.
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Old 10-16-2018, 04:29 PM
 
3,806 posts, read 8,278,147 times
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Quote:
Originally Posted by lunasister32 View Post
I got approved for a conventional mortgage with one of the conditions being that I get a letter from the Social Security Administration stating that I will receive disability payments for my son for the next 3 years. I called the SSA and they said they don't write those types of letters. They sent me the award letter, which I forwarded to the bank, and they're saying it's not enough. Why would they ask for this? They need to show continuance of this kind of income (disability, child support, spousal support, etc) of at least 3 years because it's simply a guideline. I can't get my employer to write a letter stating they're going to pay me X amount of money for the next 3 years, and they're not asking for that. Agreed in regard to the arbitrary/inexplicable nature of these differences.

This is after I paid for the appraisal, homeowner's online course, inspection, down payment, etc.

Does anyone know if this will disqualify me for ANY type of mortgage or just Fannie Mae? I had wanted to stay away from FHA for obvious reasons, and my credit is fine.

I fear that without my son's monthly disability payment, I won't qualify on my wages alone ($3400/month). The bank did not count my child support ($100/month) or my foster care income ($544/month). Front end DTI is 18, and back end is 51.

I'm in the mist of a panic attack as my lease is up the end of Nov.
This might not be fun, but I would get a letter of diagnosis from your son's Doctor describing his condition and, inasmuch as is possible, saying that it is expected to last in perpetuity, or somesuch.
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Old 10-17-2018, 12:50 PM
 
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Both Fannie Mae and FHA both require proof of 3-year continuance for social security income to be used. Freddie Mac doesn't technically have the continuance documentation requirement, although your lender may have an overlay that requires it, or they may only go by Fannie Mae guidelines (both are common and very possible). You might have a conversation with your loan officer about what documentation they've been able to secure from the SSA in previous files, or what their experience has been in dealing with the SSA.

The standard Verification of Benefits form has a box for "Probability of Continuance." If the SSA will fill out that form, you'll have what you need, assuming the benefits are going to continue for 3 years.

Why isn't the bank using your child support income? Are they unable to document it, or have the payments been sporadic? I'm not sure $100/mo will make a sufficient dent, but I'd be pressing them anyway.

As to your foster care income, have you been receiving it for at least 12 months? If so, you should be able to use that, too, as long as you can document it via one of the following: a letter from the organizing paying you, a copy of your tax return showing the income, or copies of bank statements to confirm the regular deposits of that income.

Ultimately, I think a conversation with your loan officer is in order. Or the processor, if you've been in contact with him or her. They're usually the people getting the documentation anyway. Either way, I hope you'll be able to get some guidance. Good luck!
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Old 10-18-2018, 06:20 AM
 
Location: MID ATLANTIC
8,156 posts, read 20,058,165 times
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How old is your son?
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Old 10-18-2018, 06:50 AM
 
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I'm very concerned you're stretched too thin for making mortgage payments.
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Old 10-21-2018, 09:48 AM
 
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Originally Posted by SmartMoney View Post
How old is your son?
He's 23
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Old 10-21-2018, 09:51 AM
 
13 posts, read 10,432 times
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Originally Posted by LLCNYC View Post
I'm very concerned you're stretched too thin for making mortgage payments.
It's all good. I have a decent job, make decent money, no credit card debt, decent credit score. My DTI ratio is good. Have a master's degree so feel like if anything happened in my current job (been there 9 years), I could find something else soon after. My mortgage payment is going to be $400 less per month in what I pay for rent. I'm an anxious person by nature, so I wouldn't go for it if I wasn't (mostly) confident...
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Old 10-21-2018, 10:00 AM
 
13 posts, read 10,432 times
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Quote:
Originally Posted by docwrangler View Post
Both Fannie Mae and FHA both require proof of 3-year continuance for social security income to be used. Freddie Mac doesn't technically have the continuance documentation requirement, although your lender may have an overlay that requires it, or they may only go by Fannie Mae guidelines (both are common and very possible). You might have a conversation with your loan officer about what documentation they've been able to secure from the SSA in previous files, or what their experience has been in dealing with the SSA.
Thank you for the advice. I had the conversation with my loan officer about requiring that I get info from the SSA that they won't give. They ended up waiving that requirement. Apparently, this was a requirement the mortgage insurance company was making.

Quote:
Originally Posted by docwrangler View Post
Why isn't the bank using your child support income? Are they unable to document it, or have the payments been sporadic? I'm not sure $100/mo will make a sufficient dent, but I'd be pressing them anyway.
They didn't end up using this extra income. I believe they weren't using it because our son is 23, and my ex isn't required to pay it anymore (beyond age 18). He just pays it because or son has disabilities. Payments are consistent, but not required by any court order or anything.

QUOTE=docwrangler;53390678]As to your foster care income, have you been receiving it for at least 12 months? If so, you should be able to use that, too, as long as you can document it via one of the following: a letter from the organizing paying you, a copy of your tax return showing the income, or copies of bank statements to confirm the regular deposits of that income.[/quote] Yes, I've been a foster mom for five years. They didn't end up using this income either, but not sure why. It's nontaxable income, but I do have records of consistent payment. I think the bank just forgot to include it, and I didn't notice. They just ended up using only my wages.

QUOTE=docwrangler;53390678]Ultimately, I think a conversation with your loan officer is in order. Or the processor, if you've been in contact with him or her. They're usually the people getting the documentation anyway. Either way, I hope you'll be able to get some guidance. Good luck![/quote]

Thank you again for the tips! My loan officer said I should be in "clear to close" by Monday!
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Old 10-21-2018, 10:07 AM
 
Location: MID ATLANTIC
8,156 posts, read 20,058,165 times
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Quote:
Originally Posted by lunasister32 View Post
He's 23
Good, glad they waived. The concern would have been if he were 16 - 17. But if he is receiving SSDI at 23, chances are strong hevwill receive it until he is 26 (and beyond).
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