Home Buying in 95691>Question Details

Grant Anders…, Real Estate Pro in Sacramento, CA

Is it normal for FHA loans to have delays?

Asked by Grant Anderson, Sacramento, CA Tue Jul 24, 2012

I am selling a house in California and I have a contract with a buyer using FHA financing. There have been many delays and it has been about 30 days after the origional closing date. Is it normal for FHA loans to have delays?

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7
FHA mortgages have no more delays than any other type of mortgage. Delays are not loan program specific; they are loan officer, loan institution, loan scenario specific.
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1 vote Thank Flag Link Tue Jul 24, 2012
Are the delays due to buyers qualifications or issues with the house? FHA transactions normally take 45 days even when all the details of the transaction have been resolved.
0 votes Thank Flag Link Thu Apr 17, 2014
Though most transactions close with few or no delays -- some even close early -- any transaction can be delayed for a variety of reasons. The reason for the delay is not in the loan type, but usually in a unique aspect of the transaction. Sometimes there are title issues, lending issues, or property issues. The important thing is to determine what the advantage to remaining in contract is versus cancelling (if possible) and finding a new buyer. Your Realtor, Title Officer, and Escrow officer should be able to supply you with an explanation as to why the transaction is held up. You and your Realtor should discuss your options and the pros and cons of each in depth to generate the best strategy to follow at this point.
0 votes Thank Flag Link Thu Apr 17, 2014
Purchase new home or renovate your old one with 203k loan.
From my experience with 203k loans, the best advice is to use a lender that offers assistance via third party with 203k processing.
This shortens the closing time by weeks. Try http://www.cfs-mortgage.com/203k for more information.
0 votes Thank Flag Link Sat Jun 15, 2013
There could be many reasons for the delay.
The best way to find that answer is to ask the question to the lender handling the transaction directly.
There could be any number hurdles to meet.

One current delay I have seen is that the borrower's 4506T (transcripts from the IRS).

Also, if gift funds are being used and were not documented correctly, lender may be waiting for new bank statements to come out.

And the possibitlites are endless and always surprising!

Regardless of the delay, I would encourage you to have your agent speak directly with the loan agent handling the transaction.

Missing a deadline by a day or two is frustrating enough. 30 days? Yikes. The loan officer should be more than willing to explain to everyone in detail what the hang up is in this transaction.

Communication is the key to not only success but in keeping all parties calm and cool.

I would ask your agent to speak with the buyer's loan agent directly.

I know it is frustrating. You deserve to know what is going on...
0 votes Thank Flag Link Wed Jul 25, 2012
unfortunately, it is very common. the bigger the institution the slower the process :)

Good luck.
0 votes Thank Flag Link Tue Jul 24, 2012
30 days is excessive. But right now lenders can take longer to close loans because interest rates keep hitting new record lows on a daily basis, and this is causing some lenders to be overwhelmed with loan files thus causing delays.
0 votes Thank Flag Link Tue Jul 24, 2012
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