Amazing is all I can say. One of the great agents in our Market Center was just telling me about a couple with 700 plus credit scores who are down sizing. They also have a great debt to income ratio. Guess what, 4 , count them 4 underwriters for FHA would not loan them money for fear that they may flip the home.
Isn't that just great, now they don't even want to make good loans! The kids move out and you want to downsize and act finically responsible and they come up with this game now.
Terry,
That is crazy! We ran into a situation with one of our buyers agents where a couple had been preapproved put an offer in on a home, got it accepted and sold their home. The lender then told them they couldn't approve them anymore and they were homeless just like that.
Wow. It is becoming impossible to secure loans right now.
Terry, that is a sad and frightening story. Hope everything worked ou for them in the end.
Terry- if that is really happenning those underwriters need to be tossed out on their asses. I haven't seen that here.
Terry,
The pendulum has gone from one extreme to another. I would have a definite attitude if that was to happe to me, somebody would hear about it.
I guess the pendulum swings from lunacy to idiocy... Which side are we on right now?
Terry, that pretty much the way it used to be here. Getting a mortgage was at least a three month ordeal, the ultimate result was unknown. I think the banks are overkilling the need to make sure they loan money to responsible people. They caused this mess, and we are paying that price and many others.
If they are downsizing and can come up with a bigger down payment, why not try going conventional instead?
So in todays world the underwriters are psychic? They knew the home buyers were going to "flip" this house? Like that is possible in most environments today? HA! The world is in a topsyturvy spin cycle.
Terry,
I ran into the same situation myself. It's crazy how the pendulum has swung so far....
Maybe we will get back to normal soon.
Have a great day
Make this YOUR Best Year Ever
Leander
One of my husband's Clients was denied an FHA loan because she and her husband already own a home in D.C. and one in Virginia. They had been living in the one in D.C., but since they work for the Government in Afghanistan, they can live anywhere they want to. They were going to move to San Diego and keep the D.C. home to rent out. Their son lives in the Virginia home. The FHA lender wanted them to sell both the homes before buying another home. They declined. As she told my husband, "It's their loss, not mine." They had a 791 credit score, so much money saved up, and an income you wouldn't believe, so it truly was the lender's loss.
By the way, the extravagant salaries that both civilians and military personnel make for working overseas is one of the unnecessary expenses that could be cut, but good luck in getting civilian contractors and military personnel to go for that. Everyone wants everything cut, until it affects their own household, and then they cry foul.
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