marieaj, Home Buyer in Chicago, IL

Anyone familiar with Homepath financing using the Desktop Underwriter?

Asked by marieaj, Chicago, IL Wed Sep 18, 2013

I am buying a homepath home. It's been 2 mos since I've been under contract.. Everything has been cleared except for one thing. According to the desktop underwriter, I've exceeded the max amount allowed for sellers contributions. The sellers have agreed to pay 3% in closing costs. They will also be giving me a credit toward any prorated taxes and will pay a nice portion of the title fees for using their title company. My assets and reserves needed for the purchase have been cleared. My question is, how do we bypass this max sellers contributions to clear to close. My LO suggested that I try to obtain a gift letter in the amount of the closing costs the seller agreed to pay. He feels that more money in my assets will maybe satisfy the DU. Then, at closing, I will still receive all my credits and not have to use any "gift" funds. The only problem is that I honestly have no family or friends to receive a gift from. Is this a glitch in DU? Anyway around it? Thanks!

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10
Marie Jones, Renter, Chicago, IL
Wed Sep 25, 2013
Thanks to everyone for all your responses. Everything was cleared the next day and I did not.need to provide any additional funds.Actually I am set to close today. Hope this goes much smoother!
0 votes
Marie, I'm curious, was it what I mentioned in my post below? It sounds like it may have been since everything was cleared up.
Flag Wed Sep 25, 2013
Congratulations and best of luck in you\r new home.
Flag Wed Sep 25, 2013
Santiago Ken…, Agent, Chicago, IL
Wed Sep 25, 2013
I will try to talk with a local lender with quick underwriting process , like Guaranteed rate .
0 votes
Manuel Brown, Agent, Chicago, IL
Tue Sep 24, 2013
Sam Sharp with Guaranteed rate is your guy.
0 votes
Matt Laricy, Agent, Chicago, IL
Thu Sep 19, 2013
Sounds a little fishy. I would get a second opinion.
0 votes
Rob Weber, Mortgage Broker Or Lender, Plainfield, IL
Wed Sep 18, 2013
This sounds like a combination of things. The LO may not be as experienced as myself or some of the other LO's posting in this thread. Also, sometimes on resubmissions, DU has been known to throw erroneous findings that are known and can be ignored. For instance, I know that that DU can error on a primary residence and erroneously state that the seller contributions have exceeded the threshold when they actually have not (on a HomePath loan) and underwriters are usually aware of this glitch and already know to ignore it if the file meets the program guidelines, that's just an example but I don't really know what's going on with the file since it's not my file and I we don't have enough information.

If you suspect the error I mentioned is the culprit, mention it to your loan officer they can look it up in their guidelines, perhaps it's already documented or the underwriter knows about the glitch.

While it's easy to flame someone to try and get your business, it makes us look like vultures, I'm sorry you didn't get more constructive answers and I hope tomorrow goes better for you! If you need to pick my brain, you may call my cell but please not I'll be flying out to a convention in a few hours so if I don't pick up, leave a VM and I'll call back soon.
Web Reference:  http://RobWeber.com
0 votes
Priscilla La…, , Chicago, IL
Wed Sep 18, 2013
Hello,

It sounds like your LO is not giving you the accurate information. The maximum seller contribution is 6%. We specialize in Homepath loans. I would be happy to help you. I can reached at 708-566-0661 or priscilla@prestige-mortgage.com.

Priscilla Land
Prestige Mortgage Corporation
0 votes
Sam Sharp, Mortgage Broker Or Lender, Chicago, IL
Wed Sep 18, 2013
Your loan officer is making an error when they run DU - ask them to get a manager or underwriter invloved that can assist. If they are unable to resolve the error you may want to consider a new lender.
I can close you in 7 business days if you are in a time crunch
Good luck
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
0 votes
There has been an underwriter who has been inputting the information. According to my LO, his manager and a Senior Underwriter are now reviewing it. Four days has passed and they are still reviewing? Unfortunately, I have to the end of the week to close. The sellers will not extend into October and apparently Fannie Mae is about to go through some kind of conversion.
Flag Wed Sep 18, 2013
Brian T. Nev…, Mortgage Broker Or Lender, Chicago, IL
Wed Sep 18, 2013
Also, max interested party contributions on a Home Path or conventional conforming loan are 6%. If the seller, Fannie Mae, has agreed to 3% concessions you are 3% under the max amount. Seeing how your loan has been in process for 60 days and this is just coming up you may be working with an inexperienced LO. Call me at 708.315.2490 or my office line of 630.654.0057. We can get this fixed easily.
0 votes
Thanks for replying. I was told by my LO that because I am putting only 5% down, that I don't qualify for the 6% max seller contributions. I should also add that the lender is also giving me a $1500 credit. I just don't understand why I am being asked to submit more money just to satisfy DU when I'm not going to even need it at closing.
Flag Wed Sep 18, 2013
Bill J Delig…, Agent, Naperville, IL
Wed Sep 18, 2013
Options:

Cancel the Deal
Work with your LO to find an appropriate solution
Work Overtime/get 2nd Job and earn the extra money you need
Contact a Different Lender and restart process
0 votes
Brian T. Nev…, Mortgage Broker Or Lender, Chicago, IL
Wed Sep 18, 2013
HI,

This is certainly not a glitch with DU. It's a glitch with your LO. They have incorrectly structured your deal in DU. It's an easy fix if you know what you are looking for.

Give me a call at 708.315.2490 and I can get you cooking in no time.


Brian Nevins
Peoples Home Equity
Mortgage Banker
NMLS#446020
0 votes
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