Nightmare Surprise Before Closing

[Veronica Mitchell]

Hello everyone, 

As the title says, we are 3 weeks away from closing and we are in a big dilemma. For background information, I'm a W-2 contract employee who makes 80k+ a year and I have been working at this job since January of this year. We went through a local company for an FHA loan and were approved. At this point, we are three weeks away from closing on our first house (August 22nd). We did the appraisal, got the lawyer, and everything was set. We spent money on the inspector, the appraiser, and the lawyer. Yesterday, my lender texted me and said that my job won't list me as a permanent employee when she ALREADY knew my situation and knew that I was a contract worker. She didn't bother to disclose this to me initially; now we are deep in the process. I'm not sure what to do in this situation, whether to drop the deal and lose my earnest money or try to find another lender. Any guidance/ tips on how to proceed would be very appreciated. Thanks.

[Nicholas Coulter]

Did you waive your contingencies already?

[Bruce Woodruff]

Can you use Bank Statements to prove income? Some lenders are fine with this, some are not. If yours is not, dump her and find one who is.

[Paul De Luca]

Quote from @Veronica Mitchell:

Hello everyone, 

As the title says, we are 3 weeks away from closing and we are in a big dilemma. For background information, I'm a W-2 contract employee who makes 80k+ a year and I have been working at this job since January of this year. We went through a local company for an FHA loan and were approved. At this point, we are three weeks away from closing on our first house (August 22nd). We did the appraisal, got the lawyer, and everything was set. We spent money on the inspector, the appraiser, and the lawyer. Yesterday, my lender texted me and said that my job won't list me as a permanent employee when she ALREADY knew my situation and knew that I was a contract worker. She didn't bother to disclose this to me initially; now we are deep in the process. I'm not sure what to do in this situation, whether to drop the deal and lose my earnest money or try to find another lender. Any guidance/ tips on how to proceed would be very appreciated. Thanks.

 Did your lender present you any options for continuing forward or you simply can't get approved for a loan without being a permanent employee?

I recommend connecting with @Zack Karp to see what you can do in this situation.

[Scott Mac]

Small claims against the lender maybe, maybe, maybe???????

[Zack Karp]

@Paul De Luca thanks for tagging me in

@Veronica Mitchell did you get this sorted yet? If not, feel free to reach out. Some lenders are more conservative than others when it comes to contract employees. FHA does not have a clear definition in their guidelines, but most lenders have stability standards, depending on several factors (contract length, previous employment, etc). Happy to look into it if you still need help.