Hello, me and my girlfriend are in contract to close on a house next week, but we’ve been pushed into a sticky situation.
We’re fresh out of college and we were fortunate enough to both find good paying jobs in the same city. We started the home buying process two months ago and had an offer accepted on a house! We were already pre-approved at one lender but then began the process of shopping for lenders. We had enough for 5% down, both had good college transcripts, a job in our field, and two years of work history (albeit only part time for last year in college). After getting many loan estimates we settled on one with what seemed like the cheapest for closing costs for the lowest APR. The last two weeks we’ve provided the lender with W2s, recent pay stubs, job offer letters, and transcripts to back up the conditions we were preapproved for.
We’re scheduled to close in a week and the lender just got back to us saying we’re not approved when he told us the whole time we would be. He said they have to average what we’ll make this year with last year’s income to calculate the debt to income ratio and because we were in college working part time we both made less than 20k driving their calculated income way too low. Our real time wages now combine at about 100k making the loan well above affordable but he can’t use that. He’s now saying our only option is to restructure into a FHA loan in which our monthly payments will $300 more! He knew all along we only worked part time in college and had hardly any income! We’re scheduled to close in a week per the accepted offer and don’t have time shop for another lender. We risk losing earnest money and maybe the deal completely if we delay closing.
Any advice? The lender did say I could refinance with another lender after a month with no penalties from them so I think that’s my best course of action, but at this point I can’t even take his word on if that’s true either. Can I refinance out of a FHA after a month?
Submitted January 13, 2023 at 11:42PM by snowconejk https://ift.tt/68DAY5L
