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Updated over 8 years ago,

User Stats

52
Posts
12
Votes
Felix D Menendez Jr
  • Investor
  • Lawrence, MA
12
Votes |
52
Posts

FHA bust Lender backed out after pre approval need help

Felix D Menendez Jr
  • Investor
  • Lawrence, MA
Posted

So I applied for a FHA 203(k) loan and was pre approved for $325K I only wanted $250k. So after giving the lender all my documents upon first visit I waited a couple days for a rejection or pre approval. Great I was pre approved so after about a month of communications with the lender and then making a offer on a house I was interested in, I requested some info from the lender so I could apply for a down payment assistance program we have in my area. The lender sent me a email stating the following,

Felix, I spoke with my underwriter and the FHA guidelines on deriving income.

FHA looks at current employment, as well as past employment.

Because of the job changes over the past 2 years, schooling (which made sense and enhanced your career)

FHA looks for a more consistent employment history and would want to see more time at your current job.

I feel if you can get close to 2 years with your current employer, you will be better suited to meet FHA guidelines.


I am sorry for the delay in getting back to you and would still like to work with you in the future.

I was upfront about my employment history and even wrote a letter explaining any and all gaps in my employment history at our very first visit. The lender knew I would be making the offer on the house and allowed me to proceed. Now I have a pending offer with no lender (yes im looking for a new lender). Any ideas as to why he waited to tell me this or maybe they did not want to deal with the down payment program knowing only 1.5% of my own money would be used for the down payment? Are there ways around this employment thing, would other lenders have different fha guidelines? I have been employed consistently for over a year but have changed companies multiple times for pay increases (which I made clear at the beginning of the application process) and stayed in the same field of work. I have been at my current job now for a little over 3 months. 

Thanks in advance

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