Credit access denial.

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This topic contains 4 replies, has 3 voices, and was last updated by  East2West 2 months ago.

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    I’ve been rejected for credit access after my inspection and putting the earnest money deposit down due to not having the required funds as they are in my 401k In addition, I had been saving funds in my 401k so they could not be spent rather than bank account and the underwriter mentioned it as well? Can anyone please let me know what the next steps should be as I have requested a withdraw but it will take a few days and my lease ends 11/30 so I don’t have much time to rectify this as I will need to find a place to live if it cannot be resubmitted quickly.



    Hi Tim, is there anyone you could put me in touch with to work through this as nothing has changed since I became qualified but now it seems different criteria is being used?



    Hello jhunsick,

    The criteria have in fact not changed, and the reason for the Credit Access denial is legitimate. The 401k funds you were saving toward your MRF needed to be moved to an immediately accessible account before you can be approved for Credit Access. This is clearly explained in your NACA Home Buyer’s Workbook:

    Documentation of other assets is important if used for the MRF and/or NACA Buy-Downs. These funds must be deposited into your bank account before NACA Credit Access review and remain there through bank application and closing:

    • 401K Assets (or Other Assets) – A copy of the 401K withdrawal and repayment terms if applicable.
    • Gift Funds – An official gift funds form is to be completed and a letter from the gift giver stating the relationship to you (it must be from a relative, spouse or fiancé), the gift givers contact name, phone number, address, a statement that it is not to be repaid, and the property address of the home being purchased.
    • Tax Refund Monies

    Once the 401k funds have been withdrawn and deposited into your regular bank account, then Credit Access should be approved. Until, then, there is unfortunately nothing that can be done. The transfer of the 401k funds to your regular bank account is and has always been a requirement before being approved for Credit Access.

    Tim Trumble
    Online Operations, NACA




    Do my 401k funds have to be liquid in my account prior to qualification? I am purchasing a multi-unit property, and I was told by my MC that I should have the funds liquid and documented in my bank account NOW. I didn’t want to take out the loan for my 401k until I knew how much money I needed to take out (minimize my debt) but I wasn’t aware that I had to take out my 401k loan prior to being qualified.




    I should add that I demonstrated that my 401k has enough funds to cover the remaining MRF (latest statement). I also included terms for the loan and added the potential monthly payment to my debts.

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