Can i re apply for an FHA loan after denial?

Asked by Valerie1, Baltimore County, MD Tue May 3, 2011

Can i re apply for Fha loan after being denied by Wells Fargo, when i applied my mid was 614, I received a commitment letter saying i was APPROVED, they denied me on the last day and told me it was denied. Now the second part of my question is should i re apply now that my mid is 640 (631,640,677) to see if i can be approved via automated underwriting?

Help the community by answering this question:

+ web reference
Web reference:

Answers

20
Spirit Messingham’s answer
Spirit Messi…, Agent, Tucson, AZ
Thu May 19, 2011
Of course you can. I would recommend you talk with a local lender, and see where you are at. A "good" one will share your scores, what is holding you back and what to work on. Like your debt to income ratio, or maybe you need to be at your job longer, or your currenty address and etc. This is free to do, that way you can see where you are at, what you can/need to do to improve and at the same time continue to save for your downpayment, thus killing two birds with one stone.

Remember, anything worth having is worth working for. Best of luck.
Spirit
1 vote
, ,
Wed May 4, 2011
Valerie,
Sounds like you have some good choices out there as far as lenders. My advice is to pick one ASAP and start the process. If you would like to speak to me my direct line is 240-403-1970
The over drafts are not much of an issuse depending on where you bank. We are local and EVERYTHING is done in house from UW to closing which means we are faster than most.
2 votes
Aaron Guerra, Agent, La Puente, CA
Wed May 18, 2011
YES you should. Just make sure to ask Wells Fargo to release your case number that they have so that you can go and try and get a new loan application package with a new lender.

Just keep up with all your credit cards, don't use them anymore, and maintain a good seasoned balance in your checking and savings accounts. You should be just fine.
1 vote
Marney Kirk, Agent, Towson, MD
Tue May 3, 2011
Valerie, it may or may not be possible. I was reading the feed, and it depends what those conditions were, and whether another lender would accept that letter from the private landlord. It doesn't sound like your credit had anything to do with the denial, is that correct?
Your best bet is to speak with another lender, and they would be able to tell you better. Does your agent know anyone from another mortgage company s/he can recommend to you? If not, there are many great lenders out there!
Good luck!!!!
Sincerely,
Marney Kirk
Keller Williams Excellence Realty
Web Reference:  http://www.realtormarney.com
1 vote
John Sullivan, Agent, Bethesda, MD
Tue Nov 27, 2012
If you were denied, I would recommend you stop by the Convention Center Nov 29-Dec 3. Neighborhood Assistance Corp of America (NACA) is hosting an event where they will be able to help you. Their program for home buyers helps people prepare for home ownership including setting up a savings plan, correcting credit defects and assisting you in becoming qualified in every way. They offer people who complete their program the opportunity to get into a home with the lowest acquisition cost including interest on the loan, (as of 11/25 their rate was 3.375%) elimination of junk fees from lenders.
Once you complete their program if you are interested in having a Certified Exclusive Buyer Agent represent you, contact me and I'll show you how I work with my clients to get them the best price and terms for the home of their choice.
John F. Sullivan
Buyer's Edge Co., Inc
john@buyersagent.com
0 votes
Randy Pomfrey, Agent, Perry Hall, MD
Tue Nov 27, 2012
Valerie,

Are you working with an agent? If not call me :) If so, then ask your agent for advice on who you can speak to. Loans are complicated nowadays, but you should still be able to get a straight answer from an honest and knowledgeable lender.

best of luck to you, and congrats on pulling up your credit score and moving ahead to buy a home!
0 votes
Christina En…, Agent, BALTIMORE, MD
Tue Nov 27, 2012
use a different mortgage company. Maryland Mortgage has good rates.
0 votes
..., , Lexington, MA
Tue May 17, 2011
Hi Valerie
I'm sorry you had to go through all that. Some pre-approvals are rather cursory and others are more in-depth. To answer your question, Yes, of course you may re-apply. If you want to ask if you would be approved and funded then a responsible lender would really need to look at your credit history, not just the numeric score. It's a dynamic system that re-evaluates risk every time a report is generated. You should, however, be conservative in seeking help as too many credit inquiries can hurt. Plan to either provide a lender with your report for an initial opinion (they can not use that report for financing) or select a few for a pre-approval and have them run credit within 2 weeks of one another - that will count as only one mortgage credit inquiry. Lenders do ask for bank statements and pull credit again shortly before closing so these things are subject to change. Just be careful to not apply for additional credit and keep your payments on time during the application process.
Let me know if I can help with anything.
Tom
Thomas J. Stevens, Loan Officer, Flagstar Bank - USA's 7th largest FHA lender!
Financing in 50 states
Thomas.Stevens@flagstar.com
0 votes
Gene Drubets…, , Baltimore, MD
Wed May 4, 2011
dont worry about automated or not just submitt your application asap and see if you get a commitment.

Good Luck

you can apply on my website 24/7 http://www.genedru.com or call me anytime 9am to 9pm direct at 410.526.1915
0 votes
, ,
Wed May 4, 2011
Valerie,

We are in Timonium, MD (Baltimore County). I am a direct lender AND DE Underwriter. If you still have questions, give me a ring. I would be delighted to help.

YOUR ANSWER IS YES.

Just because Wells may have denied your loan, doesn't mean someone else can approve you.

b
Web Reference:  http://www.203kworld.com
0 votes
Valerie1, Home Buyer, Baltimore County, MD
Tue May 3, 2011
Thanks to everyone who answered. I met all the conditions on the pre approval letter then they sent me the commitment letter with CLOSING CONDITIONS. Then they said no, they said on the phone it was because of some overdrafts then the denial letter said prior obligations with others and old judgements which was approx 3-4 years old. I just didn't understand how they ran my credit, approved my credit, then denied me because of my credit lol, it just didn't make any sense to me. So do I have to just lose this deal and find another home because my HUD contract is up on Friday and I can only get an extension if I'm sure I will ne financed...
0 votes
Ronda Allen, Agent, Plano, TX
Tue May 3, 2011
contact a different mortgage broker and try. the worst they will say is no. do not go back to one of the big banks. i prefer hometown banks, credit unions, and tried-and-true time~tested mortgage brokers who I have closed deals with for many years. i have seen all of these pull off successful closings when the big banks make the decision in the 11th hour to pull out.
0 votes
Gene Drubets…, , Baltimore, MD
Tue May 3, 2011
Absolutely, but your best bet is to find out the reason why you got turned down so you can correct the issue when you re-apply. Please call me anytime with any questions or you can visit my website http://www.GeneDru.com and apply online. I specialize in government loans, FHA and VA. Good Luck
Web Reference:  http://www.GeneDru.com
0 votes
Valerie1, Home Buyer, Baltimore County, MD
Tue May 3, 2011
Thanks Brent.. Now, Can i still get funded with another bank after being denied for a fha loan. is the deal DEAD due to the denial.. I opened that can of worms with the verification of rent, now if a lender is ok with a Letter from my private landlord and then there isnt any need for the prior years bank statements then what...

Thanks again
0 votes
, ,
Tue May 3, 2011
I talked to two UW who work here and both confirmed that this can kill a loan. I think this is a perfect example of the straw that broke the camels back sort of thing. Most loans aren't killed by one single event but rather the death from a thousand cuts. You have low scores, BK, collections and to that UW a lack of proper money management. Just telling you how they see it. This is one of the problems putting all your eggs in one basket so to speak with just Wells. Absoutely try again with a smaller bank that offers multiple investor avenues. This is a fixable error and the loan officer really should have reviewed the asset statements before it was submitted. I know hindsight is 20/20 not trying to pick on the guy or gal but they didn't pay attention. Let me know if this helps and if I can do anything else.
0 votes
Valerie1, Home Buyer, Baltimore County, MD
Tue May 3, 2011
Chima, No. The commitment letter had all CLOSING CONDITIONS.... What do i do. My agent tells me that if its denied by Wells in the FHA system that it would be next to impossible to get financed with an fha loan..
0 votes
Nnaemeka Chi…, Agent, Owings Mills, MD
Tue May 3, 2011
Yes, if your situation has improved since you last applied. Did the committment letter have any conditions you where not able to meet?
All the best,
N. Chima
Web Reference:  http://www.chimagroup.com
0 votes
Valerie1, Home Buyer, Baltimore County, MD
Tue May 3, 2011
Well Brent, I was told that the underwriter did not agree with the amount of overdrafts i had in 2010. I explained that i was in the process of cleaning my credit my mid at the time was 540 and I was paying bills as they came and sometimes after paying my rent i would be in between paychecks and ACHs would post to my account and i would pay them when i got my direct deposit my bank covered them up to 300 dollars so i used that window to pay what was needed (not my monthly obligations they were paid 1st) I received the denial letter and it said due to past obligations with others and past repossession, bankruptcy, and or Judgments. I had 2 judgments in 2007 that were satisfied and no current collections... Hope this help clear it up.. Thanks to all who answered...
0 votes
, ,
Tue May 3, 2011
Yes you can and certainly should. I still would like to know why they turned you down. They are required to give you an answer in writing. Will they speak to you? Something doesn't add up here on their end. I answered this a few days ago. Committment letters mean approved and why was it sent if you weren't approved? Hope this helps and let us know if you need more.
Thanks,
0 votes
Tony McMahon, Agent, WHITE PLAINS, MD
Tue May 3, 2011
Hi Valerie, if your scores have improved as you have said it appears that you should be able to get qualified , your credit history will also come into play.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more