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Old 06-08-2009, 11:06 AM
 
Location: Denver, CO
1,876 posts, read 4,289,407 times
Reputation: 1574

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See if they can hire you earlier, otherwise you'll have to push closing back. It used to be so much easier to get loans without 20% down.
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Old 06-09-2009, 10:48 AM
 
8 posts, read 61,365 times
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I talked with them today, and apparently it has nothing to do with the type of loan or the amount down (we can put 20% down if we needed, but we'd have to yank out some investments, not retirement accounts, but still...).

They say there is NO WAY I can close with ANY loan until I have been at work for 1 day. I'm working on getting them to claim my starting date is much sooner, but this is completely ridiculous. Basically, there is no way for someone to buy a house at a place they are moving for a new job? Only for a job relocation?? Seems like that is a huge hole in the mortgage business.

You all said this is pretty universal policy too... right? My problem now is that if I switch lenders, rates are up anywhere from .5% - 1% more than when I locked in, so that's thousands of dollars more in the long run!
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Old 06-09-2009, 11:33 AM
 
Location: Denver, CO
1,876 posts, read 4,289,407 times
Reputation: 1574
Like I said, it used to be much easier. I moved a year ago and got a conventional 80% loan with only the letter of job offer. In fact, our first house had not sold yet so technically we were going to carry two mortgages. But we had 800+ credit and enough for 20% down without having the first house sold. Not sure if that mattered but back then they didn't give us a hard time. I didn't start on my new job until a month after closing.

It's unfortunate about the current situation. Clearly your loan officer should have tipped that work requirement to you prior to you scheduling your closing, they really dropped the ball there if they knew all along that you had to be working before the loan going through.
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Old 06-09-2009, 03:28 PM
 
392 posts, read 1,452,494 times
Reputation: 134
Lenders aer much stricter than the "book of guidelines" state. The reality is, you have to be working and obtain a pay stub before they will count it. This is often the case on conventional loans too. Too many people can get a "letter of hire" and do not actually start the job
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Old 06-09-2009, 06:30 PM
 
Location: The Hall of Justice
25,906 posts, read 38,140,417 times
Reputation: 42587
Quote:
Originally Posted by dosterpf View Post
I am currently a postdoc at a university in AZ, and have had this job for approx two years this August. I am moving to SC to start a tenure-track job at a college, and I am officially employed starting in August. There will be no lapse in employment. I have a letter stating that I will be employed at the college.

I have set a closing date for a house in SC for July 7th. I will still be employed from AZ but not in SC yet. I was told from my loan processor the following:

"I did get a response from the FHA underwriting..On a new home purchase, FHA requires that you have to be on the job for atleast 1 day for the lender to physically fund and close the loan. I understand your moving to a different state and I was just informed of this so I wanted you to be aware. The bank can lock your loan, process your loan, and underwrite your loan fully, but cannot close until they have a verification of employment of atleast 1 day on the job."

Has anyone heard of this before? This seems a little ridiculous? I can't close on a home I want to move in before I start my new job? Does this seem fishy to anyone? This is a reputable company... perhaps my processor just doesn't know what he's talking about?

Any help would be greatly appreciated. I've never owned a house before, and I am very anxious about this process. Everything appeared to be going smoothly (the assessor has come in, we were pre-approved for well over what we needed, inspections have been fine, etc) but this is the first "bad" thing that has popped up. I can't postpone closing, otherwise I'll forfeit the house.

Thank you!

Paul D
We got an FHA loan in July 2008, when we moved from California to Illinois. The lender (Taylor Bean & Whitaker) accepted an offer letter from my future employer, but maybe they don't do that anymore. Also, my husband moved out three months earlier and started his new job, so we had proof of his employment. That might have been a mitigating factor.
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Old 06-10-2009, 09:38 AM
 
8 posts, read 61,365 times
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I talked with another lender today, and they said it would be no problem as long as I start within 60 days. Problem is, I locked in at 4.75% with my last lender, and rates are now at about 5.5%, so I'm losing out on A LOT of money.

I know that plenty of people can claim employment, but I have a binding contract. I had the head of HR at the college contact the lender and see if they can't figure out something. I also asked the lender about what I should do to switch lenders. I sure as heck hope they're not going to charge me a huge fee for not going with them, when they couldn't handle closing by the date in the contract (which WAS a reasonable timeline for when I started this process!!), but nothing would surprise me. They keep acting like it's my fault for wanting to move into a house before I start working.

Thanks for all of your help.
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Old 06-11-2009, 12:23 PM
 
8 posts, read 61,365 times
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So, I haven't heard a thing from either my processor or his manager after calling them once each and emailing them both 2-3 times in the last two days. Is it safe to assume they're not even attempting to get me my loan any more and are just ignoring my calls?

I'm calling another lender this afternoon and going to get started with them. Is this standard practice? If they discover they can't make any money off of you will they just never let you know and leave you hanging? Is there someone I can report this too?
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Old 06-25-2009, 08:37 PM
 
6 posts, read 39,171 times
Reputation: 21
This info has been very helpful. Applying this situation to my own: I am a school counselor who is switching schools from last year to this coming year. I have a signed contract with the school I start at in August. I am having trouble getting a definitive answer on whether this contract is enough or if need to provide more (Ex: Proof working at least a day, or 30 days of pay stubs from my new employer - which will not come until Sept 1 and Sept 15). I like a house, and I have a pre-qual letter for a special FHA financing program available at this time, but I don't want move forward unless I know I can close in a reasonable time. Anyone have any info that may help clarify?
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Old 05-15-2010, 10:24 AM
 
1 posts, read 5,294 times
Reputation: 12
......well its late May 2010 now....does anyone know if rules for obtaining a FHA loan when moving to a new city for a new job have changed?
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Old 05-15-2010, 06:42 PM
 
Location: Plano, Texas
1,675 posts, read 6,616,040 times
Reputation: 693
The lenders i deal with require that you have 1 month of pay stubs from new employer.
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