I’m soooo over this home buying crap! So I was working with an out of state mortgage company that I sent paperwork, check stubs, w2’s etc and received a pre approval letter. I was accepted for a 30 year fixed rate FHA Loan up to 130k that I couldn’t use my retirement account for down payment because the loan officer told me I need the retirement acct to show for reserves. Which I don’t understand because from my research FHA loans don’t require reserves.
Moving forward my realtor referred me to a mortgage company in my city with a guy who has over 20 years experience. I sent him all my exact same info and documents and received a pre approval for a 30 year fixed rate FHA Loan up to 140k and I can use my retirement as down payment. For me this was a better option so I chose to continue working with this loan officer.
Well today I received an e mail from the out of state loan officer asking me what’s going on. I thanked her for her services and told her I switched mortgage companies and explained the reason why. She seemed to have gotten upset and replied that just because I’m now working with a local mortgage company doesn’t mean they are quicker and better and that I will be back at square one because I won’t be able to use my retirement because of the structure of the loan and I will need to show reserves regardless of whatever the new loan officer is telling me.
I’m so confused! Why do I need to show reserves with a FHA Loan? The NEW Loan Officer hasn’t mentioned anything about needing reserves or that I can’t use my retirement for down payment because I need to show it as reserves. I’ve already gone through underwriting with the new loan officer and my loan is in holding as I’m getting closed dispute comments removed but nothing else seemed to be a concern to the underwriter! What is really real? I’m soooo over it and just ready to say forget it all and now I feel bad because the old loan officer is upset! Any advice would be great!