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Has anyone every heard of an FHA home loan falling through once it’s been pre-approved by the automated system?
Posted on November 22nd, 2009 3 comments
Lannie B asked:
I recently applied for a FHA loan to buy a home in another state b/c my husband’s job is relocating him. We own a home in our current state, and the loan officer said we were approved after submitting documentation (W-2s, pay stubs, etc) verifying we had the income/assets to carry the costs of two houses. Our FHA financed home in our new state will be our primary residence; we likely plan to rent out our current home to wait out the bad market. Our LO said we don’t have to list our current home as an investment property since we haven’t listed it to rent. He also said that they pretty much don’t care what we do with the current house since our income shows we can carry both mortgages and still fall in line with their desired DTI ratios. I’m just worried things will fall through b/c they’ll decide for some reason we can’t have two mortgages. Is this a senseless fear?
FREDRICKRenting & Real Estate 2s, Assets, Automated System, Current State, Documentation, Fear, Fha Home Loan, Fha Loan, Houses, Investment Property, Job, Pay Stubs, Ratios, Relocating, Rent3 responses to “Has anyone every heard of an FHA home loan falling through once it’s been pre-approved by the automated system?”
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Hi Lannie -
I wouldn’t lose sleep over it. If the underwriter finds that your documentation is OK, you should have no problem. They are verifying everything these days, but as long as your income and credit are within the guidelines, you should be fine. Don’t worry about it until your loan officer tells you to worry about it! Enjoy your new home - -
Fort Sill Army Wife November 25th, 2009 at 12:41
Yes I have heard of them falling through and until closing they can turn you down for any reason they see fit.
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russ_in_mo November 25th, 2009 at 17:14
The only thing that will make it all fall over at this point (going by what you’ve said) is the new house failing to appraise. And that happens regularly with FHA loans – their appraisers are forced to work under mind-numbingly silly restrictions.
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dog ma November 23rd, 2009 at 01:46