My daughter and son in law want to buy a home but unfortunately my daughter is working to get her credit restored after a bad divorce left her with collections and a reposessed card that were her ex husbands but he never paid. She paid them but is working of getting the credit better. I offered to help so my son in law and I would be the co-borrowers and they would be the occupants so I would be a non-occupying owner while the other borrow would occupy.
Early March 2015 loan office approved me and my son in law for an FHA loan for 170k based on our application, job history and credit report. We made an offer on a house, contingent on their house selling, when out of the blue she then says, Oh my mistake, you don't have enough work history for FHA. He had left a job in CA and had a six month gap but had been working for 10 months. I had a 12 month gap as I was laid off a job and decided to take a year off so I only had four months history. She then preapproved us for conventional, we did the inspection and the appraisal of the house (money from our pocket), then tells us closing will be delayed because of having to get extra paperwork, etc. We turned around every request within and hour. The down payment money for this purchase was coming from the sale of my son in law's mothers home that he and my daughter had been renting so they had a gift letter in the amount of 10K. Their house sells, stays with the closing date now we are delayed. My daughter and son in law had already scheduled time off of work for the move. Then out of the blue 1 day to closing date the loan officer lets us know we are declined because I only have 4 months work history. She said she didn't know that was required. She assured us that was the only issue and we even tried to work with the seller to rent the home to my daughter and her family for two months until which time we could close. They would not so my daughter and her family had 4 days to try to find a place to rent month to month until they could put in another offer when my employment history reached 6 months. They ended up finding a furnished place which was way more than if they had done a one year lease on a house. Now they are out 3k in rent for two months, as well as 200 for a moving truck, 200 per month for storage and they also had ADT with a two year committment that was movable but this delay in not reactivating it cost them 1200 for the contract.
Fast forward now to June. All this time we have been furnishing bank statements, pay checks etc and are assured that on June 9th when my work history reaches 6 months with my company we are all good. They find another house, put in a bid but lost out to an all cash bid. They find another house, put in a bid and here we go. Credit reports are pulled and look good. In fact the loan office congratulates us as our FICO scores have gone up. We order the inspection, have the inspection and go back to the seller with repairs requested then yesterday, out of the blue, denied!!! The explanation was that my daughter and son in law had to have the down payment month in their bank and it can't be the 10k gift money from his mother. Even though I have money in a savings they said that wasn't okay because I was a non-occupying borrower and the occupiers needed the 5% down in their account. They never had this in their account, thus the gift money. This was known before any home was ever looked at.
At this point this loan officer has cost us
600.00 Appraisal for first home
400.00 Inspection for second home
1200.00 ADT not being transferred
500.00 Deposit on 2 bedroom apartment
1500.00 May rent on apartment
1500.00 June rent on apartment
200.00 Uhual to move furniture to storage
200.00 May storage
200.00 June storage
This does not include 300 for dog sitting for the delay of close of escrow for the first deal. The dog has also been cared for by a family member since. This loan officer's actions caused my daughter and son in law their three kids to almost be homeless.
I want to know if there is anything I can do to be reimbursed for all the money she cost us by not knowing the qualifications for a loan before preapproving us. The issue is not credit scores or income. Those are all fine. What I can't understand is three major mistakes, not know FHA work qualifications, not knowing conventional work qualification and then the issue of not being able to use gift money. All of these were discussed with her prior to applying for the loan in the first place
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Don't create new threads to post the same or similar question(s). Thank you.
One of the admins, AJ
Early March 2015 loan office approved me and my son in law for an FHA loan for 170k based on our application, job history and credit report. We made an offer on a house, contingent on their house selling, when out of the blue she then says, Oh my mistake, you don't have enough work history for FHA. He had left a job in CA and had a six month gap but had been working for 10 months. I had a 12 month gap as I was laid off a job and decided to take a year off so I only had four months history. She then preapproved us for conventional, we did the inspection and the appraisal of the house (money from our pocket), then tells us closing will be delayed because of having to get extra paperwork, etc. We turned around every request within and hour. The down payment money for this purchase was coming from the sale of my son in law's mothers home that he and my daughter had been renting so they had a gift letter in the amount of 10K. Their house sells, stays with the closing date now we are delayed. My daughter and son in law had already scheduled time off of work for the move. Then out of the blue 1 day to closing date the loan officer lets us know we are declined because I only have 4 months work history. She said she didn't know that was required. She assured us that was the only issue and we even tried to work with the seller to rent the home to my daughter and her family for two months until which time we could close. They would not so my daughter and her family had 4 days to try to find a place to rent month to month until they could put in another offer when my employment history reached 6 months. They ended up finding a furnished place which was way more than if they had done a one year lease on a house. Now they are out 3k in rent for two months, as well as 200 for a moving truck, 200 per month for storage and they also had ADT with a two year committment that was movable but this delay in not reactivating it cost them 1200 for the contract.
Fast forward now to June. All this time we have been furnishing bank statements, pay checks etc and are assured that on June 9th when my work history reaches 6 months with my company we are all good. They find another house, put in a bid but lost out to an all cash bid. They find another house, put in a bid and here we go. Credit reports are pulled and look good. In fact the loan office congratulates us as our FICO scores have gone up. We order the inspection, have the inspection and go back to the seller with repairs requested then yesterday, out of the blue, denied!!! The explanation was that my daughter and son in law had to have the down payment month in their bank and it can't be the 10k gift money from his mother. Even though I have money in a savings they said that wasn't okay because I was a non-occupying borrower and the occupiers needed the 5% down in their account. They never had this in their account, thus the gift money. This was known before any home was ever looked at.
At this point this loan officer has cost us
600.00 Appraisal for first home
400.00 Inspection for second home
1200.00 ADT not being transferred
500.00 Deposit on 2 bedroom apartment
1500.00 May rent on apartment
1500.00 June rent on apartment
200.00 Uhual to move furniture to storage
200.00 May storage
200.00 June storage
This does not include 300 for dog sitting for the delay of close of escrow for the first deal. The dog has also been cared for by a family member since. This loan officer's actions caused my daughter and son in law their three kids to almost be homeless.
I want to know if there is anything I can do to be reimbursed for all the money she cost us by not knowing the qualifications for a loan before preapproving us. The issue is not credit scores or income. Those are all fine. What I can't understand is three major mistakes, not know FHA work qualifications, not knowing conventional work qualification and then the issue of not being able to use gift money. All of these were discussed with her prior to applying for the loan in the first place
.
.
.
..
.
.
..
.
.
..
.
.
.
.
.
.
.
.
Don't create new threads to post the same or similar question(s). Thank you.
One of the admins, AJ
Last edited by a moderator:
