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Old 05-17-2010, 07:54 AM
 
193 posts, read 501,973 times
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FHA: Must see first paycheck in order to close. A written letter from the employer was not enough for us.

Conventional: My brother is going for a conventional loan and they stated he could close within 60 days of starting his new employment.
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Old 05-17-2010, 10:48 AM
 
Location: Laguna Niguel, CA
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It varies by lender, most require what Victor stated above, a paycheck stub which reflects 30 days of pay.

However some lenders will still abide by the FHA guidelines. The key is that it must be an employment contract (not offer letter) as well as be non-revocable or have non-revocable verbiage.
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Old 05-17-2010, 06:43 PM
 
Location: MID ATLANTIC
8,150 posts, read 20,017,959 times
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No, the OP has it right. What you are running up against are called investor overlays. You need to find a lender that will adhere to the guidelines, and they do exist. That said, if there are other "issues" then I can see the lender's reluctance. Other issues would include, scores, okay, not great, barely enough cash to close, prior credit issues........the job needs to be the only issue. Because in the end, it is up to the individual lender to feel comfortable. In the metro DC area, we see a lot of this due to the way civil service moves around, not to mention the military.
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Old 06-02-2010, 07:50 PM
 
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Going through a similar situation at the moment. Trying to get approved for an FHA, and my current teaching position ends this summer--will begin my new teaching job in August. However, so far, all of the FHA lenders my LO has worked with have stated they need 1st 30 days pay stub. A bit frustrating.

I do have a contract for employment for my new position (not just an offer letter) so we're still hoping a lender is out there that will "read between the lines" with my current situation. Seems a bit ridiculous that I may have to move twice.
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Old 06-19-2010, 09:50 AM
 
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This particular forum topic seems to have a lot of good information. I am looking to become a first time home buyer, and the information here is better and more clear cut than on other websites I've visited.

I am in a similar situation as the original poster. I am finishing grad school in August and start a tenure track position on August 23rd.

I want to make sure I'm understanding clearly what the consensus here is. To be clear, this is how I understand it...

My background info: Have been in a steady GA/TA position through PhD work for 3 years. Am starting my new position August 23rd. I will receive my first 30-day paystub on October 1st, according to the University's payroll/HR. I currently have my offer letter signed by the provost that states my full 9-month salary AND my start date.

If I want to close ASAP after Oct 1st (let's say even as soon as Monday, Oct 4th).... when should I seek pre-approval for an FHA loan? I was thinking around mid- to late July. Is this a correct assumption?

I understand FHA loans typically have a minimum 45-day close period. To me, this means I should begin looking at houses late July/early August. Does this mean I should go ahead and make an offer in, say, mid-August?

I appreciate all the help ya'll can give. I have a mortgage broker (friend of my parents) to whom I could pose these questions... but don't want to "use" her for stuff that ya'll might be able to answer.

Thanks!
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Old 06-20-2010, 01:54 AM
 
Location: Laguna Niguel, CA
768 posts, read 4,118,534 times
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If your situation isn't complicated, you can theoretically close on an FHA loan within 3 weeks if the appraisal is ordered right away. 30 days is very typical and will allow time in case additional verifications/clarifications are needed, and it could be that 45 days is typical for your area (some states like NY & NJ 45-60 days is pretty normal). For your situation you'd want to figure you'd close no earlier than 4 business days after getting your paycheck stub reflecting 30 days of pay - 2 days for the underwriter to review (sounds silly for it to take 2 days but realize they are reviewing yours plus hundreds of other loans) and 2 days for the docs to be prepared, delivered (emailed) to the closing agent, HUD prepared and approved, and you signing/the loan funding.

It's not really known how long it will take you to find the home you want to make an offer on, how negotiations will go, and if it might take 2 or 3 homes before you get your offer accepted. With FHA credit reports are good for 90 days (if it's resale, 120 days if it's new construction) so you'd want to get pre-approved sometime in July in order to decrease the chances of having to have an additional credit check (if that is something you are concerned with) but allow you time to check the available homes in your market out. You can also make an offer and put the closing date as a specific date (say, October 7th or 8th) to coincide with getting your paycheck.

If you have a loan officer in mind you really need to ask them these questions, how else will you know what they are capable of (or even if they are capable)? It's not safe to assume. It is never bothersome for any client to ask us questions, we actually expect and like them to because it means we are all on the same page and have a mutual understanding of what is expected during the loan process. If you blindly walk go into a business arrangement with a loan officer you could be in for some surprises.
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Old 06-20-2010, 08:22 AM
 
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Thanks for your reply, Shane. I appreciate the info. You're right, I should and will be asking clarifying questions of my mortgage broker. Because it's still a little too early for us to begin the formal process, I just wanted to get some general info

Your information was helpful and again, I appreciate your response.

Thanks!
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Old 04-30-2011, 03:57 PM
 
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You are absolutely right about the guideline. Although, the loan cannot be insured by FHA until the lender obtains a paycheck from you. This is why most lenders would just rather wait till you have the first paycheck so they don't have to sit on your loan. No lender likes to close before the first paycheck, but there are lenders who will do it. Norcom in CT will allow someone to close if they are starting a new job soon, but typically only if it's a couple weeks. We get hounded by our investor until the first paycheck is received.. Hope this helps. You can just find a different loan officer!
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Old 05-01-2011, 06:26 PM
 
Location: MID ATLANTIC
8,150 posts, read 20,017,959 times
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Quote:
Originally Posted by NorcomMike View Post
You are absolutely right about the guideline. Although, the loan cannot be insured by FHA until the lender obtains a paycheck from you. This is why most lenders would just rather wait till you have the first paycheck so they don't have to sit on your loan. No lender likes to close before the first paycheck, but there are lenders who will do it. Norcom in CT will allow someone to close if they are starting a new job soon, but typically only if it's a couple weeks. We get hounded by our investor until the first paycheck is received.. Hope this helps. You can just find a different loan officer!

Welcome! I see this is your first post. The thread is almost a year old - I think the OP is long gone. We get a lot of love us, then leave us once you have your answer on the real estate/mortgage threads. Which is really fine, it keeps things fresh.
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Old 10-30-2015, 10:50 PM
 
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I'm going through the same thing right now. Was told by several lenders that all my husband had to have was proof of future employment, and now the lender we are working with is requiring at least one pay stub, which puts us in a bind because we are moving halfway across the country with 5 kids, and didn't plan on going until we had a house to move into.
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