Posted on: 21st Jul, 2009 04:39 pm
We signed a contract on a house (that needs almost a total gut renovation) on April 17. Originally we were told that it would take 6 wks to get a FHA 401k mtg. It has now been 12 weeks and no commitment from the lender Our mtg broker tells us "any day now", which he has been saying for the past two months! We trust our mtg broker but it seems this is a bit excessively long. We have a good (not great) credit score, we have an architect, house plans, a contractor, and a HUD inspector all ready and waiting to go. Is it normal for the mtg to take this long or is something wrong? The seller has wanted to pull out, because it was taking so long, but the realtor convinced them to wait. Now the contractor is telling me that they have other jobs to plan if we aren't going to need them. We had all of the appraisals and home inspections weeks ago. Any advice would be greatly appreciated
signed,
frustrated
signed,
frustrated
frustrated - i don't blame you for your frustration. i am convinced you were citing a 203K loan rather than a 401K - i guess the delay has caused that confusion, too.
it's not at all unusual for a renovation loan to take longer than you might expect with other types of loans, but i agree that 12 weeks is a bit longer than you ought to be seeing. your broker, i'd think, ought to be able to give you some sort of reason for these delays rather than saying "any day now" all the time.
since you're working with a broker, you may find that your loan has been recycled to a different lender than originally thought (maybe more than one). that could certainly consume some time.
you need more answers and my advice is to hound the broker to get those answers.
it's not at all unusual for a renovation loan to take longer than you might expect with other types of loans, but i agree that 12 weeks is a bit longer than you ought to be seeing. your broker, i'd think, ought to be able to give you some sort of reason for these delays rather than saying "any day now" all the time.
since you're working with a broker, you may find that your loan has been recycled to a different lender than originally thought (maybe more than one). that could certainly consume some time.
you need more answers and my advice is to hound the broker to get those answers.