Letter of explanation for FHA loan

[GettingControl]

Ok, we are due to close on an FHA loan on the 15th and just found out the conditions on my loan today. I need to type up a letter of explanation for 3 old small chargeoffs and a few 30 day lates on an old car loan. I have no idea where to start? Any advice would be appreciated. I am working with a very busy broker, is this something the broker usually does? Or is it normal for the borrower to write it? Thanks

[johible]

Are you writing this letter to the lender's underwriter or the FHA underwriter?

 

What were the circumstances involving the charge-off and late payments?

 

It wasn't a condition in my FHA loan that I write a letter explaining my charge-offs and collections (I included an explanation in the application). I did however, have to write a letter explaining a couple of deposits in my bank account. My loan officer and I sat down and typed one up in about 2 minutes.

 

I'm no expert (I did just close last month), but I would write a formal paragraph or two explaining how you had fallen on hard times and couldn't keep up with payments.

[Duccini]

I had to write 3 letters of expalnation, one to state how we generate work for our business, one to explain all our old addresses and one to explain why my SSN was so young (I am an immigrant) I just wrote a very short and to the point letter for each. It's painless really. Good luck to you with your loan!

[GettingControl]

Are you writing this letter to the lender's underwriter or the FHA underwriter?

 

Our broker said it was a condition of the loan. I assume it is for the lender's underwriter because she is working with the bank right now.

 

What were the circumstances involving the charge-off and late payments?

 

The lates on the auto were family medical issues in 2006.

1.a have a chargeoff for a bank account that I forgot to stop auto pay on my car insurance for $300, moved and never realized the account was closed until too late in 2005.

2. a water bill I swear I dont owe from 2003 $192.

3. A verizon cell bill from 2006 is the last charge off for $930.

 

It wasn't a condition in my FHA loan that I write a letter explaining my charge-offs and collections (I included an explanation in the application). I did however, have to write a letter explaining a couple of deposits in my bank account. My loan officer and I sat down and typed one up in about 2 minutes.

 

I'm no expert (I did just close last month), but I would write a formal paragraph or two explaining how you had fallen on hard times and couldn't keep up with payments.

[GettingControl]

I had to write 3 letters of expalnation, one to state how we generate work for our business, one to explain all our old addresses and one to explain why my SSN was so young (I am an immigrant) I just wrote a very short and to the point letter for each. It's painless really. Good luck to you with your loan!

 

Thanks, I will need a long relaxing vacation when the loan is all done. I have never been this stessed in my life!

[Duccini]

I had to write 3 letters of expalnation, one to state how we generate work for our business, one to explain all our old addresses and one to explain why my SSN was so young (I am an immigrant) I just wrote a very short and to the point letter for each. It's painless really. Good luck to you with your loan!

 

Thanks, I will need a long relaxing vacation when the loan is all done. I have never been this stessed in my life!

Oh yes it is a real test of strength thats for sure, just take a deep breath and give them everything they ask for as quickly as possible. Good Luck!

[pwright]

I had to write two letters. One for a BK back in 2001 and one for a chargeoff. I had a FHA Loan and just closed over a month ago. My mortgage broker said they needed the letters for the file. Each letter was only about 3-4 paragraphs long and both ended like this.

 

Since this time, we have been able to establish ourselves once again and manage our finances.

 

Hope this helps.

[alicia671]

Are you writing this letter to the lender's underwriter or the FHA underwriter?

 

I was under the impression these are the same people. The lenders have FHA certified UW's in house, I believe. Someone can correct me if I'm wrong.

[GettingControl]

Are you writing this letter to the lender's underwriter or the FHA underwriter?

 

I was under the impression these are the same people. The lenders have FHA certified UW's in house, I believe. Someone can correct me if I'm wrong.

 

 

I honestly have no idea. My broker doesn't tell me much of anything. I am getting annoyed to say the least. 90% of the time she lets my calls go to voicemail and doesn't return my calls for days. It took her a week to get back to my realitor, after my realitor called her a second time. I have a week to close, and she wants to go on vacation next week...

[alicia671]

Thanks, I will need a long relaxing vacation when the loan is all done. I have never been this stessed in my life!

 

I just got done saying the same thing to my bf. I haven't been feeling well the past few days and I KNOW it's cuz of stress! Going thru the FHA process now, closing is July 31. BTW - we each had to write a few letters of explanation as well, it's definitely not uncommon.

[GettingControl]

Thanks, I will need a long relaxing vacation when the loan is all done. I have never been this stressed in my life!

 

I just got done saying the same thing to my bf. I haven't been feeling well the past few days and I KNOW it's cuz of stress! Going thru the FHA process now, closing is July 31. BTW - we each had to write a few letters of explanation as well, it's definitely not uncommon.

 

Stress is a wonderful thing. I felt nauseous after talking to my broker this morning. I feel a bit better about the letters now. So the next thing I think I should get after everything is OKed is a letter of commitment from the bank?

[Brian B The Loan Professor]

I had to write 3 letters of expalnation, one to state how we generate work for our business, one to explain all our old addresses and one to explain why my SSN was so young (I am an immigrant) I just wrote a very short and to the point letter for each. It's painless really. Good luck to you with your loan!

 

Thanks, I will need a long relaxing vacation when the loan is all done. I have never been this stessed in my life!

Oh yes it is a real test of strength thats for sure, just take a deep breath and give them everything they ask for as quickly as possible. Good Luck!

 

SOLID ADVICE

[De]

I had to write a letter of explanation for some COs and my foreclosure. DH also wrote a letter for me, even though I'm applying on my own. The letters can be simple and factual--just for the file, like your lender said. Mine were quite detailed and emotional--and I know they played a major roll in me being even considered for approval.

 

Good luck--if you have cash left for a vacation after you close--more power to you--if not--take a little mini-vacation in your new home.

[anjie]

Thanks, I will need a long relaxing vacation when the loan is all done. I have never been this stressed in my life!

 

I just got done saying the same thing to my bf. I haven't been feeling well the past few days and I KNOW it's cuz of stress! Going thru the FHA process now, closing is July 31. BTW - we each had to write a few letters of explanation as well, it's definitely not uncommon.

 

Stress is a wonderful thing. I felt nauseous after talking to my broker this morning. I feel a bit better about the letters now. So the next thing I think I should get after everything is OKed is a letter of commitment from the bank?

 

 

 

We must all be going through the same thing. I am suppose to close on the 18th its with the underwriter now I think i will pass out if she starts asking for letters at this point. I REALLY need a clear to close. This has been such a stressful ordeal. I came >< that close to having an all out panic attack in the car today. Just thinking about the dates and such. I will send out a prayer for all of us.

[kingston73]

I can understand the stress you all are talking about, I'm going through the same thing right now. My wife and I have been trying to buy a home since march, and have hit just about every possible road block and obstacle possible. Now, finally, we have put an offer on a house (the 5th or 6th one now, I've lost track) and had it accepted, so the last thing is to get our FHA final approval. Our LO has assured us it won't be a problem, we passed the auto underwriter and have our preapproval letter. For one house we even got our GoodFaith Estimate all written up and signed before the house fell through. I'm still freaking out a lot though because I read on here and other forums about how people have preapproval, get to the day of closing, and everything falls apart. I'm getting gray hair, losing it, and getting ulcers all at the same time!

[djenkins728]

I too am experiencing STRESS during my loan process. It seems the more I do for them the more they want. And still am on pins and needles waiting for somone to give me an answer.

[RVD26]

I too am experiencing STRESS during my loan process. It seems the more I do for them the more they want. And still am on pins and needles waiting for somone to give me an answer.

 

You and me both.

I swear I've given every document but my birth certificate by now.

[kingston73]

Thanks, I will need a long relaxing vacation when the loan is all done. I have never been this stressed in my life!

 

I just got done saying the same thing to my bf. I haven't been feeling well the past few days and I KNOW it's cuz of stress! Going thru the FHA process now, closing is July 31. BTW - we each had to write a few letters of explanation as well, it's definitely not uncommon.

 

Stress is a wonderful thing. I felt nauseous after talking to my broker this morning. I feel a bit better about the letters now. So the next thing I think I should get after everything is OKed is a letter of commitment from the bank?

 

 

 

We must all be going through the same thing. I am suppose to close on the 18th its with the underwriter now I think i will pass out if she starts asking for letters at this point. I REALLY need a clear to close. This has been such a stressful ordeal. I came >< that close to having an all out panic attack in the car today. Just thinking about the dates and such. I will send out a prayer for all of us.

 

How did it work out for you? Hopefully well, but let us know

[IAmOnMyWay]

I look forward to having the priviledge of this type of stress. I am at the stage of just working on the credit.

 

Many years ago, when applying for a FHA loan, I did have to write letters of explanation for my som 30 and 60 days late. My broker dictated and I typed and signed. One of my explanation was that I had moved (the truth) and was remissed in providing my new mailing address to all my creditors . Not sure that would fly nowadays. See if your broker can provide some quidance and as previously stated, it should end with a statement as to your diligence in meeting your obligations in a timely manner.

[TechPrincesse]

I had to do 2 of these as well. One for an address in another state that shows up on my CR (my mum's address) and another for some CO's some of which were still in dispute. In the letter I pointed out that I was in a bad place but I fully recovered and my bank statements and credit reports reflect I hadnt had any late payments in 3 years.

 

They accepted my letter and I moved onto the next step in the game successfully.