Not Qualified- Conditions…..Please Help!!

Home Forums Purchase Program Not Qualified- Conditions…..Please Help!!

This topic contains 2 replies, has 3 voices, and was last updated by  southflorida 7 months, 1 week ago.

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    @Tim or anyone who can help me with these conditions I just received on my webfile…please and thank you.

    1. Member is seeking above current rent. The counselor needs to provide narrative and documentation to support the affordability for the recommended payment increase.

    *Is the UW requesting proof of my buy down funds, payment shock??

    2. Please provide narrative for why the member have 401k loans?

    * Do I need to write a LOE? If so, I took out these loans long before starting the Naca process.. will I still need to write a LOE? Has anyone had to do a LOE for a 401k loan? I need an example LOE on the verbiage.

    3. Please provide documentation to support the 401k loan amount the MC is using to calculate monthly debts.

    * What specific documentation will I need to provide?

    I tried reaching out to my MC, no response. I’m trying to be proactive as possible to get things back on track. Thanks everyone for your responses I appreciate it all!



    Hello Determined2018,

    I’m glad to see that you are being proactive about your file. That being said, you may be trying a little too hard and over-thinking things a bit.

    With regard to conditions, the vast majority of them are handled by your counselor (or Closing Coordinator later on), who will reach out to you if your direct input is required in resolving them.

    As item 1 noted, underwriting is asking your counselor to provide narrative and documentation to support the requested payment increase.

    Preparing an LOE on the 401k loans won’t hurt. Just keep it simple:
    To Whom It May Concern:

    I took out a loan from my 401K in the amount of $__________ on _____DATE______ For the purpose of ________________.

    When you got the loan, you received a document outlining all the terms of the loan just as with any other loan. Just send a copy of that if it’s not already in your file.

    Keep it simple and you’ll be okay.

    Tim Trumble
    Online Operations, NACA



    Tim, can you please clarify if 401K loans are used as debt. I believe in an old post you had indicated it’s not since basically you are borrowing from your own money. However, recently a member indicated that 401K loans are in fact used as debt

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