Buying the House... A big "no way!" from FHA

>> 8.18.2009

Well, the inevitable home purchasing problem has come up a mere week before my estimated closing date. I had to change loans and ended up with some missing documents in the process. I wanted to go with the FHA because of the low interest rates and downpayment requirements, but that won't be possible because the home I'm buying is technically a condo (although it is really more of a semi-detached townhouse). I'm still waiting to see how my monthly payments will work out. I guess things won't be as perfect as I thought they'd be.


In addition, I received a lovely email from my broker outlining the additional items that I need to send in:
1. BORROWER TO PROVIDE COMPLETE 2008 AND 2007 TAX RETURNS.
2. BORROWER TO EXPLAIN EMPLOYMENT GAPS.
3. BORROWER TO PROVIDE A LETTER FROM CPA OR ARTICLES OF INCORPORATION FOR FAMILY BUSINESS VERIFYING SHE HAS NO OWNERSHIP INTEREST IN THE COMPANY.
4. BORROWER MUST PROVIDE COPIES OF CANCELED CHECK(S) TO VERIFY EARNEST MONEY HAS BEEN PAID TO THE SELLER.
5. BORROWER MUST PROVIDE A WRITTEN EXPLANATION THAT STATES THE RELATIONSHIP TO THE SELLER AND THE REASON FOR THE PURCHASE.
6. BORROWER TO PROVIDE A LETTER OF EXPLANATION ON LOW EARNINGS IN 2008.

At first, I was really stressed out about all of the documents and the time frame to get them all in by, but my broker assured me that this was a very normal part of the process (maybe she shouldn't have written the email in all caps!). So now I'm just stalled out while I wait for my family's CPA to send a document proving that I do not own part of their business. The original closing date was set to be August 20 (it's obvious that won't happen). I'm just hoping things don't get caught up again from here.


What kind of delays did you have buying your home? How much was your closing date delayed?

5 comments:

erinlovesdesign August 18, 2009 at 11:00 AM  

I just closed on my house last Thursday. Last Wednesday my mortgage broker calls us to tell us that since you have an FHA loan, we could not, as previously discussed roll our remaining closing costs into the home loan. The day before we closed he tells us this! Luckily we had savings and my fiance's parent's helped us out, but it was such a headache - we thought we were going to lose it before we got it!

You will get it all figured out. Banks are being very strict and cautious so there will likely be a few delays. I am rooting for you!

thriftylittleblog August 18, 2009 at 11:19 AM  

@erinlovesdesign- You'd think they'd be more careful when thousands of your dollars are involved! At this point, I'm not even sure how much I'm going to need to bring to closing. The lender said, "we'll get it worked out."

thisgirlandthatguy August 18, 2009 at 2:22 PM  

The inspection!!! Turns out "my" chimney needs 6k worth of work and the seller is trying to get about 100 second opinions to get the cost down. Are they going to pay or NOT!? I guess we shall see.

Dani August 18, 2009 at 8:21 PM  

Our closing date actually got moved UP. (strange, I know.) The seller was actually the past owner's son as the owner had passed. And they needed to sell before our original closing date or they had to pay fees. Anyway, it was only 3 days difference but that 3 days meant we were short an extra pay check to help with last minute costs! But in the end we couldn't say no to 3 days since we didn't want to lose the house over that!

However, the closing got delayed 3 hours the day of because one form had a number wrong. That was a headache!

jess@noelmarie August 19, 2009 at 9:53 AM  

I didn't have any delays, but that was several years ago and before the market got weird.

Good luck with everything and thanks for the comment. Your blog looks like a great idea!

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