Lender backs out after lock, and saying underwriting approved the

[Andrew Korcek]

We locked in a rate with the the builders preferred lender to get the seller credit, and they met the best rate I could get from another lender. March 11 they said we were locked, Monday (4/11) I got an email from another person in the lending team saying yesterday underwriting had conditionally approved the loan they just wanted a few more documents. Then yesterday (4/13) the loan officer called me and said the investor who had accepted the loan was backing out due to my DTI. All of my debt is on our 3 rental properties, that are all cashing flowing, and they had all the info back before the lock. We are supposed to close May 6. I am active duty military and this is going to be our primary home when we move, so we are using a VA loan.

I'm not sure what to do, or even if there is anything I can do. All my previous 4 mortgages have been through the same loan officer, so I called her because she knows my financial pretty well and we closed with her on our duplex in August so not that long ago. She said there is no way I don't qualify, and that they have to be making a mistake, or they didn't lock the loan and don't want to admit they made a mistake.

Any advice is appreciated.

Thank you!