Can a lender pull a loan after 6 days after closing and began construction of my home?
I applied for a FHA loan late last year had a couple bumps on my credit. Fixed those and was finally approved. Signed closing docs and 6 days later I get a email that the loan is moving forward and they began construction. A few days later they ask if I got married and said yes and then they said they had to pull the loan back. I was single when i applied and they never asked again. I never mentioned it cause I didn't think it would matter. on the closing date they asked if i had gotten married and i said yes and they said all they needed was for my wife to sign a doc stating she did not want part on the loan. by Marco.ortega21965 from , California. Aug 16th 2014
Larry Gray (lgray_312_247)
#597 ranked lender in California - 1,139 contributions
The lender wants to make the loan :right." It is extremely rare that a loan be "unfunded" after closing. That is because lenders want to "fix something" when it can be. In most instances it can be and that includes yours, If all they are asking is your wife sign paperwork accepting that you be the only one on the loan and title, then they are asking very little of you, to correct the loan. Technically, on an FHA loan, a spouse's debt is supposed to be counted in qualifying regardless of whether only the husband is on the loan. It sounds like they want to get the legal requirements corrected and not try and requalify you for the loan they had already approved and funded.If it is a 203k Rehab loan then a portion of the money has been set aside for the construction. That process should be able to be resumed.
Thanks Igray for your time and information. My wife went to sign the documents they asked for, but they opted to completely unwind the loan stating the reason being that my wife is already paying mortgage. The place where we are getting our house said they were going to try another lender. They sent me a amendum to sign. At this point we're hoping for the best but expecting the worst.
Larry Gray (lgray_312_247)
#597 ranked lender in California - 1,139 contributions
It is quite unusual to buy a home and then be married before the home loan closes, and then...the lender only discovers it after funding! I am surprised the lender did not know you had a fiance and the anticipated wedding date! If you can somehow get the money together for a conventional loan, the spouse's credit need be considered at all. You have a right to buy a primary home that you qualify for...even if your new wife owns a home purchased prior to the marriage. If you do not have enough funds to get together for a conventional loan, you might find a relative that can gift the funds to you. I hope you can figure out a way to still buy the home. I would be more than happy to assist you.
Larry Gray (lgray_312_247)
#597 ranked lender in California - 1,139 contributions
Clarification: "on a conventional loan, the spouse's credit (i.e. mortgage, etc.) need not be considered at all."
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