Scott, I did a search through the responses to ensure I did not replicate a comment or question. Long story short when the government shut down for over a month in only one of us was getting paid; both were Federal employees at the time. As we have only recently moved to the area we are being told it is difficult and time-consuming to purchase in this area due to lack of available funding; there being little desire to pursue business in this part of CA.
The loan officer is adamant the timeshare is a realty transaction and is, therefore, a disqualifying event for a VA loan until it is paid off or current. We called the VA and they indicated it is considered consumer debt, not a realty transaction. We had to re-score our credit in Mid September as derogatory incorrect information was removed pushing the scores back up. The company has provided very little communication with us over the last 4 weeks with the only exception being my inquiry a week ago regarding the application.
The loan said she would talk to underwriting to see if it could go through now as she had not submitted it the three weeks prior. I am not able to get an answer yet despite them having all the necessary information for almost a month. The essentials: This will be the fifth house we have purchased using the VA cert in the last 20 years; all houses paid off with one mortgage payment late, 30 days, 10 years ago.
Excluding the CC chargeoffs, the other 7 cards have 1 late payment in the last 10 years. We are definitely not giving up, but frustrated at the lender as their lack of knowledge regarding the subject is costing us time and possibly the property.
At this point, any new lender would add another hard inquiry as the initial two inquiries were Mid August and Mid September. I have a difficult time believing there is no one out there willing to lend at the moment given the red hot market. The timeshare is considered installment debt, NOT Mortgage debt. That changed quite a few years ago. I have been denied under the Manual underwriting process, and I have no idea how to over come this issues when the credit score is where is need to be could someone help and that?
It is a little concerning to me that your loan officer did not explain to you why you could not be approved, and what you can do about correcting that situtaion. Shoot me an email at scott findmywayhome. Also, let me know if you are you trying to buy or refinance an existing VA loan? Is it customary for a lender to include deferred student loans for a VA home loan? My student loans are deferred and I should complete my program in the next two years and the lender is Wells Fargo.
If student loan repayments are scheduled to begin within 12 months of the date of VA loan closing, lenders should consider the anticipated monthly obligation in the loan analysis. If the borrower is able to provide evidence that the debt may be deferred for a period outside that timeframe, the debt need not be considered in the analysis.
The challenge is that typically, the deferment is reviewed every 12 months, which makes it nearly impossible to document that your deferment will extend for 12 months AFTER your first mortgage payment is due. The light at the end of this tunnel is that VA is very flexible with debt to income ratios and will use other factors to compensate for or mitigate risk. In these situations, the borrower might have to re—apply for a different type of loan or back out and wait until their circumstances improve before applying again.
However, no news can just as easily mean your lender is experiencing an unusually high volume of loan applications.
Ask how often you should expect to receive updates, and in what form. For instance, should you be checking your email? Will your lender communicate via text? Consistent communication is key. Ideally, your lender will reach out right away if there are any issues in the underwriting process. Currently, most lenders are taking longer to process refinance applications than home purchase loans.
Home buyers have hard deadlines they must meet, so they typically get first priority in the underwriting queue. The average turn time for purchases, from underwriting to closing, is approximately 30 days. Refinances are averaging 45 days. But keep in mind, closing times vary by lender.
Those with credit problems can wait as long as 30 days for a decision. Once the file has been processed, the appraisal for the property you wish to purchase will be ordered. The appraisal can take as long as 10 days to be returned to the lender.
Should there be any issues with the appraisal, you have some options. You can choose to either walk away from the property purchase completely, ask the seller to reduce the price or pay the difference between the appraised value and the loan amount in cash at closing. Once the appraisal is completed, the loan is returned to underwriting for final approval.
At this point, a VA underwriter will review all aspects of the loan and issue the final loan documents for the closing appointment. Once employment and credit is re-verified, the process takes about two business days to issue the closing documents and send the final information to the title company for the buyer to sign off on the loan and property information.
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