At the risk of sounding like a Zen Psychotherapist rather than a Real Estate Agent, "It has nothing to do do with you."
Lenders are nervous as cats on a hot tin roof right now. What should take 3 days, takes three weeks. If you can think of this as an exerecise in patience, it may be easier. Have you asked your agent for help?
It usually takes 45 days, perhaps even longer, for escrow to close on an FHA loan from the time of acceptance of your offer. For an FHA loan, they require at least 2 appraisals. And they should pretty much agree.
We had to back out of escrow when the appraisals came in at $295 and $400K. The bank had to conference the appraisers to seek a common ground, but the low appraiser wouldn't budge. After weeks of trying to get a resolution, we gave up, and moved on.
Wells Fargo may have approved/pre-approved you, but by the nature of your FHA loan, it has to be reviewed by the underwriter who will base his approval on the results of the appraiser (and the results of any inspections you may have mentioned in your contract).
That's another question: was there a mention of a pest report, roof inspection, etc? If so, the underwriter may make it a condition of approval to complete certain safety and hazard issue repairs before he approves the sale.
The term "Kiddie Condo" doesn't mean that you are buying a condo. However, if you are buying a condo, Stephanie McCarty is correct. The condo must be approved by the lender not by HUD. Here's the process and it takes a while if the condo was not FHA approved: Home Owner's Association fills out condo questionnaire. Condo insurance, financials and questionnaire are sent to HUD. HUD approves the loan that if defaulted they will pay the lender 100% of the loan. HUD may reject the property as well. Once approved, the a case number is issued and the lender can move forward. This can take up to 45 days to process.
I recently had to get a condo project approved through HUD and it took 30 days. I had to drive to HUD's office in person to speed up the process (typically takes up to 60 days). So, if the Loan Officer (LO) says that the loan is with FHA, it means that FHA is processing the condo paperwork. An in-house Direct Endorsement (DE) Underwriter may save you a few days because a LO can stand in her office waiting for her to help.
Side note: When the new law went into affect changing the risk from HUD to Lenders, HUD changed their software. The HUD website that LO's used to determine condo eligibility was changed and created a glitch in the system. The website stated that the condo was approved when in fact it was not. The same website is now used by underwriters to let them know if a condo is eligible to be requested to be insured by HUD.
Where to go from here short term? You may have to buy the house as an investment property. You may want to ask yourself if your daughter has anything in her name. You may want to ask if the lenders below can do the loan with a borrower that has no non-traditional credit programs.
Long term: Give your Daughter pre-paid credit cards where she has to put money into the card and the card maximum purchase power is the money she deposited. Not only does this help build her credit file, it teaches her that the money she puts in is all she can use to take out (like a checking account). Company's like Orchard Visa, your local credit union, Capital One offer this (some have horrible rates and fees - but it's a beginning).
You'll need to call the LO and tell them that you've started shopping elsewhere. If they don't respond by Monday, you are going to request they transfer the FHA case number to the next lender. I too will check with my Underwriter to see if they offer this program. We may still be able to use the same appraisal to help eliminate more expenses.
I grew up in Augusta!
One issue you may face with FHA could be the status of the Home Owners Association. If several units are in default this could cause a delay or possibly denial.
At this point you should have some solid information on the loan. With Banks like Regions they are brokering the loan so they don't work with direct underwriters and loans have to pass more strict guidelines if they are going to be sold off to secondary investors. When it's all said and done Wells Fargo could be financing this loan, but most loans like this are sold to overseas banks.
I do most of my business with Wells Fargo for that reason. They don't sell their loan and they have direct underwriters which gives them more control and less red tape. Don't believe everything you hear! Wells Fargo is my top choice for Home mortgages.
My sister is one of the head loan officers at Georgia Bank and Trust in Augusta and they are probably the best around when it comes to local bank lending in the Augusta area. They also face the same brokering issues, but have a high success rate due to their volume.
Good luck and I hope that you can get some resolution soon!
You need a new lender my dear.
I am sorry to hear of your troubles. Sounds like Regions is not a direct lender for FHA loans if your loan officer told you that your loan package is with FHA. They may have brokered the loan which means they send it to another lender for loan approval & that's where you start seeing delays. Lori is correct in that loans are not sent to FHA for approval. Your loan officer may think that by saying this, it sounds "more official" & is trying to shift the blame of delay away from her to FHA.
If there is a next time for you to buy another property or refinance, may I suggest you find a Mortgage Bank that is a direct lender. Unlike the "big four" banks suffering from the horror stories that you have heard about, loans falling through at closing at the last minute. A Mortgage Bank's operations usually run more efficiently & they will have all the processing & underwriting done in-house because that is their soul focus, closing loans.
Good luck with your closing,
Roswell Moore, CMPS
Certified Mortgage Planner
We are a Direct Lender, Mortgage Bank where we originate, process, underwrite and fund our own loans, on time.
NMLS ID 263779 | AZ BK 0903725
Atlanta Housing Source at
Solid Source Realty, Inc.
Home Buyers & Sellers - http://www.AtlantaHousingSource.com
Property Management â€“ http://www.SolidSourcePM.com