Not qualified… Multi family (please help)

[frankysmom]

Tim Trumble, @timtrumble

I am a bit confused and dismayed, from my understanding and from asking during webinars, the $400 landlord fund does NOT need to be from taxable income. The monthly budget calculation is the determining factor and household members income is factored in.

We rent a room and have for close to a decade for $600/ month but didn’t include it in the budget per our MC.

My husband has less than 1 yr at his second job and same goes for me at my part time job. If both or even one of those are included we’d have way more than the $400 required. We have been saving at minimum $1,000 /month.

Lastly, does prospected rental income not factor in here at all?

[frankysmom]

@ttrumble

It would be so appreciated if you can take a look at our file. Thanks in advance for the response

• This reply was modified 2 years, 6 months ago by frankysmom.

[TTrumble]

Hello frankysmom,

I have to admit your questions have me a bit confused. I assume someone told you something that was different than what you had previously thought? There’s no context to your questions, so they’re a little hard to understand.

Not including the income from the room you rent should be pretty obvious actually. When you get your new home, you won’t be renting that room, so including that $600 in calculating your affordability doesn’t make sense since that income will no longer exist. If a multi-family property, the calculation will use 75% of the projected rental income. However, the presumption is that all of a single-family home will be used by the owner-occupants.

All part-time or secondary income must show a two year history in order to be counted. otherwise, people would get a part time job to increase their qualification amount and then quit the job as soon as they closed on their home.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

• This reply was modified 2 years, 6 months ago by TTrumble.

[frankysmom]

I Figured as much Regarding The other questions.?

Yes our MC told us per underwriting we were not qualified for a multifamily because my husband’s main income does not show the required 400 dollar landlord surplus fund. My understanding was that in the case of a multi family that 75 percent of rent can be included in the budget analysis and affordability. We are being told otherwise.

[frankysmom]

Update, we were able to get a regional director to look into the situation.

[frankysmom]

It seems for whatever reason, the calculation was not factoring rent like @ttrumble said.

Sounds like great news but still, there has been no movement on our file since this post. We are still stuck in limbo, our MC is a bit afraid for lack of a better word to resubmit unless she gets express permission to do so. We’re waiting for that permission stick to drop so far, nothing.

I know it’s really easy to get lost in the shuffle and trying to be patient but if all our ducks are in a row, I don’t see why we can’t be resubmitted.

I have been the politest of pests and still nothing. Tim, can you take a peak and advise?

[frankysmom]

Hate to “bump” but @nelsont, any suggestions here?

A director peaked into our file and it looked like for whatever reason, the calculations were not factored correctly. This should be an open and shut case, re-submit to underwriting. Instead, everyone seems to be playing hot potato and passing along the “burden” of correcting the error. Our MC won’t resubmit unless the director notes it in our file. I don’t know why the next logical conclusion isn’t to get confirmation from the director.

Do you know if it’s against the rules to get in touch with underwriting or if that is even a possibility? We’re desperate here! This slower season may be our only chance at purchasing a home in our area.

Sorry for the long spiel, but we’ve met our MRF since October, and I am desperate to be in a home in my old neighborhood before spring so I can take over the care of my ailing father. ATD is about to start up again so that won’t help matters.

Thanks in advance for the response, hope your holiday is going better than mine.

[Nelsont]

There’s no way for any of us to get in touch with the underwriters. Just imagine, if there were, no work would get done!

I understand your frustration and I would be frustrated too. I really don’t know what internal rules are but, it sounds like your MC is unwilling to admit a mistake without a superior pointing it out. Same goes for resubmitting. I can definitely see if your MC is afraid of being accused of working the system without a good trail of notes left behind.

[Peapod0609]

Can you ask the regional director to make a note of it so your MC can proceed?

[frankysmom]

Hi Peapod, That was my first move and it hasn’t been done. I don’t know what else i can possibly do at this point.

We may just stay in limbo indefinitely until someone decides to have mercy on us and do something. This is so disheartening. Thanks for the response

[frankysmom]

Update!

Apparently my MC was incorrect as to why the file was denied, it had absolutely nothing whatsoever to do with not showing shock for a multifamily.

I don’t know why she didn’t simply reach out to anyone, someone to find out the reason instead of assuming. In any event, I am thrilled with finding out the actual cause. My local office suggested I get in touch with the supervisor of counseling and that did the trick.

Now, I just need my MC to resubmit and we should be good!

Thank you all for trying to help, it is much appreciated.

And let me be a lesson to others, if your file isn’t moving, don’t just wait, keep asking until you find answers.

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