Is there a federal law concerning how long the FHA has to approve a mortgage loan?
Posted by admin | Under FHA Mortgage Sunday Mar 30, 2008Our offer was accepted on Feb 14th. Paperwork was sent to the FHA underwriter on Feb 20th. Closing date was supposed to be March 20th.
Today is March 30th. We have a new closing date for April 2nd. We have not had a final determination concerning the loan. And there is no way that we can close on the 2nd.
We were pre-approved before we went house hunting. Our loan is for 15% less than what we qualified for.
Basically what is holding the loan up is the verification of income. How long do they take to get verification of income?
How long can the FHA take to make a final determination on a mortgage loan. Remember that the home owners are also waiting.
I have spoken with the loan officer at the bank and the bank’s underwriter SEVERAL times by phone and e-mail over the last 6 weeks.
You’re still not closed, I see.
There is absolutely no law about how long the underwriting can take.
Your loan officer seems to be an absolute idiot though. He had 6 weeks to get your income verification. That can take anywhere from 1-5 days, depending on what you are able to provide, and how quickly your employer returns our verification request documents. He had plenty of time, and obviously didn’t do it.
I would be pushing them to pay for any and all expenses you’ve incurred by this delay. And I’d make them drop their fees substantially to make up for your time and trouble.
I am assuming you are dealing with a broker, one that does not have Direct Endorsement from HUD. So they’re at the mercy of their investor’s underwriters, as far as timing goes. And most brokers don’t have a clue about how to properly handle FHA loans at all.
Sorry to hear you’re still having trouble.
it's not the FHA that is approving your loan…your mortgage company underwrites the loan, but uses FHA guidelines. i would call your mortgage company and find out what is going on…
References :
i am a legal secretary for a real estate attorney in Georgia…all we do is real estate closings. also, i have 4 properties…1 primary and 3 investment
The previous responder is correct, the lender, not FHA approves the loan. The lender's underwriter reviews the loan request to ensure that the loan meets FHA guidelines.
Somebody is not telling you the whole story here. Your pay stubs and W2's verify your income. In addition, the Underwriter may require your employer(s) complete a Verification of Income form that confirms your probability of continued employment.
You may not be getting the straight scoop from your loan officer. I'd call the loan officer's branch manager and ask for an explanation of what is causing the delay.
If they dink you around too long your seller could pull out of the transaction and you could lose the house. I'm pretty amazed they haven't already bolted.
If you'd like, I could run you an approval to back up what you're being told at no cost. Email me and I'll tell you what to fax me so that I can perform that service for you.
References :
20+ years as a direct mortgage lender
I bought a property in Aug of 2005 and financed it FHA. i missed my closing date by more than 60 days. Bad news? nothing you can do about it! The underwriters take their sweet little time, because lets face it…you living with relatives, having everything in storage and built up frustration does not concern them. Only thing you can do is TRY to get the UW number and start calling them every hour on the hour until they get sick of you!
References :
past experience with FHA
You're still not closed, I see.
There is absolutely no law about how long the underwriting can take.
Your loan officer seems to be an absolute idiot though. He had 6 weeks to get your income verification. That can take anywhere from 1-5 days, depending on what you are able to provide, and how quickly your employer returns our verification request documents. He had plenty of time, and obviously didn't do it.
I would be pushing them to pay for any and all expenses you've incurred by this delay. And I'd make them drop their fees substantially to make up for your time and trouble.
I am assuming you are dealing with a broker, one that does not have Direct Endorsement from HUD. So they're at the mercy of their investor's underwriters, as far as timing goes. And most brokers don't have a clue about how to properly handle FHA loans at all.
Sorry to hear you're still having trouble.
References :
10 years in mortgage banking
You may want to have your attorney make the call.
References :
http://www.terrytwomblyrealestate.com