Financing in 23430>Question Details

Vern, Home Buyer in 23431

If a home is to be your primary place of residance, does it matter how far you drive to work? That is the reason for denial, via the underwriter.

Asked by Vern, 23431 Fri Mar 19, 2010

short and sweet. Have Land, Agreed to have Modular sat up on Land, Land and Home to merge as one, to make a final mortgage. all areas of approval was satified. Underwriter states reason for denial was not, debt to ratio, it was under the alloted amount, not credit score it was above 620 during the time it was allowable good score. Not because income, it was there, not even because it would not have been my primary residance, it was to be, but only reason was the commut was too far to my job from the residance...I still don't understand why this anything to do with my closing and paying a monthly payment. Can anyone ellaborate on this?

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Hi, Vern

Unless we're talking over 50 miles away, and your currently have a home, that in of itself should not have been grounds to deny your loan. Based on what you shared by your credit score be good at one time, that sounds like the actual reason. Also, very few lenders are doing modular homes any more as well. Maybe your window of opportunity closed on that as well.
1 vote Thank Flag Link Fri Mar 19, 2010
The distance to drive form home to work can be a reason to deny a loan application. It was nothing to do with otherwise being qualified for the mortgage. Generally speaking, if the distance is greater than 50 miles, you can expect that you will not be approved for the loan. A couple of reasons could be - 1) how can this be a primary home if the distance to work is so far away; and 2) how long can you keep up the commute before you give it up and thereby be in a position of not being to make your mortgage payments.
0 votes Thank Flag Link Fri Mar 19, 2010
Hi Vern, how interesting- thanks for sharing! Mike seems to understand the issue and his explanation makes sense to me. Providing answers to his questions will allow him to answer more fully. Given the primary resident requirement for the loan, I can see how an evaluation of suitability as a primary and feasibility of commute to work and your pay, and thereby source of loan repayment could be evaluated. A great distance could throw up two red flags - one, is it really a primary residence? and two, if so, might this distance put the long term propsects of the job in jeopardy.

Talk to your mortgage rep - that's whose advice you need most. Ask for clarification and whether there is anything you can do to change the outcome.

Good luck to you,
Jeanne Feenick
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0 votes Thank Flag Link Fri Mar 19, 2010
Yes, i have had loans denied because the place of employement was pretty far away. It appears the underwriting doesnt think you will living in the house, thus it will NOT be your primary. (FHA loans are only for primary residences). How far of a commute is it?

Do you own any other homes?
0 votes Thank Flag Link Fri Mar 19, 2010
Vern-I would suggest you sit down with the mortgage professional and discuss all of the variables you including in your message. You mention a credit score, a second home scenario, a job, a modular home all of which can play into concerns for a lender. They are the only ones who can and should give you the direct answer to the issues involved in your mortgage denial.
0 votes Thank Flag Link Fri Mar 19, 2010
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