Sometimes it feels as if FHA...

Pollopicu

Is looking for something to trip you up with, so they have a reason not to give you the loan. We have been able (so far) to provide every single BS paperwork they've requested. I don't want to be specific here because we're still in the process, but if we ever get there (less than 28 days) I will try to remember to come back and describe the ridiculousness of some of these requests. It gets to the point where you feel like you're being singled out...but others must go through this too...right?

kaylie622

They kind of are. When FHA approves a loan they approach it as though you will never make one payment on the house (this is what our REA told us). They're trying to minimize their risk and make sure that if you get foreclosed on, they can recoup their losses.

MaineWifey

The whole lending process can be really difficult at times, FHA or not. 

I was just speaking with my Dr. at my appointment yesterday.  He's moving and he said that the hoops he was having to jump through to get a mortgage were ridiculous.  He's a doctor and I believe that his wife is one as well, so obviously they have great incomes, he said they have great credit, no outstanding debt, and he said that he wasn't buying anything pricey, but the bank was giving him the hardest time.  He was starting to get concerned they were going to turn them down. That's crazy to me!

It's making me really second think if I really want to go through the process of selling our house and buying again.   It just seems so stressful, and maybe not worth it. 

 

Susie Derkins

Sure it's a PITA, but can you blame them?  Look at the mess that was created by them NOT being thorough enough, and NOT getting documentation for assets, income, etc. over the course of the early 2000s.

A happy medium would be nice, but I totally get why it is the way it is now.  

Pollopicu

It is extremely stressful. My husband and I have been trying to purcahse a home for almost 4 years. Not all FHA fault. We're picky about where we want to live and didn't just want to buy any house that is approved by FHA standards. We both bring good income into our household, and although we're not debt-free (few americans are), our debt to income ratio is fine. We have no kids, and we're not spend-thrifts either. We haven't been on vacation in years. I recently acquired a second job as well..but that won't count because according to FHA you have to be able to be employed for at least a year for them to consider it as income. That hurt us a lot because when we moved out of state, I obviously could not prove the income of the new job I had secured. So they had to go based solely on my husbands income. So this "law" affects many people who are relocating and getting an entirely new job, and not being transferred. There are so many other details that i just can't get into right now because we're still in the process and i don't want to screw anything up.

Pollopicu

I understand too...to a certain extent. I failed to mention in my original post that my husband and I owned two homes. Sold them to relocate to a different state. Never ever once missed a mortgage payment, or was late. Not once. Took a huge hit on the sale of both homes just so we could move on with our lives. So it's infuriating that the mistakes of other who walked away from their mortgages is affecting our purchase for a new home with our pristine mortgage record. How can that not upset anyone?

Juris11

We have clients who are banks and I knew ahead of time what they were going to want, so I feel fortunate in that respect. But I agree that it is crazy the things they want. Our loan officer was telling us that she feels like the government overreacted somewhat after the crisis, and it took away a lot of the personal discretion that they used to have, because there are tons of guidelines now. So she said even though she might not personally think that documents are necessary they have to get them.

Pollopicu

I think that is a huge issue. People who go into it not knowing the guidelines..but in all fairness, the guidelines are different for each and every person. Which then becomes a paradox. Each person has a unique financial, work, and living situation. So even if a new person were to be wise enough to sit down and attempt to familiarize themselves with the process I don't think it would help much because they will still find a stone left to turn.

 

I'm just trying to give everyone here a heads up while using the opportunity to let off a little steam as well. I know it's a necessary evil, but it doesn't take away from the fact that it's totally frustrating and nerve-wracking.

stever

Susie Derkins:

Sure it's a PITA, but can you blame them?  Look at the mess that was created by them NOT being thorough enough, and NOT getting documentation for assets, income, etc. over the course of the early 2000s.

A happy medium would be nice, but I totally get why it is the way it is now.  

This exactly. Giving everybody and their dog mortgages without proper vetting has been proven to be disastrous. 

BriGiboo

Our loan officer was rude until he realized we had assets. From what others tell me this isnt unusual. They dont want to loan you $ even though thanks to "we the people" bailing them out there is plenty they are sitting on!

Mrs_Hark

i completely agree. and i'm a little comforted that it's not just me going though this.

our bank is currently re-examining the home we want to purchase (with a FHA loan, assessment has been done) to make sure that the 50 year old 1st addition has an 18 inch space between the floor and ground. they had to remove a window in the basement and then they have to send a camera into the space to measure it. complete ridiculousness. i feel they are looking for any reason to not approve this loan and it's really pissing me off. it blows my mind that they are going to these lengths to research a 50 year old building code and wasting time and money.

i don't even know what i will do if this deal falls though because if this dumb ***. 

adussell7

I've had three house deals fall through because of FHA, the other two were because of the amazing BS of B of A but seriously, they do that to everyone.