NBR:unique situation w/military causing mortgage problems vent and need help!

saturdaynightdoubletree

DH is a reservist in the CG on active duty orders for the last 2 years, and we will be active duty for at least another 1 to 2 years to date. When he first activated, I stopped working and became a SAHM because we were making enough money to do so and live comfortably. Problem is, now we're looking to buy a house. The bank will not look at him as being Active Duty and will not look at any of his Coast Guard income. It just makes things look bad on paper this way because I do not currently have a job, but plan to by the fall once LO3 is over 6 months. The bank will only consider DH's civilian job pay which is hourly at a 40 hour week, even though when he was working that job it was all about the over time pay and he was working 70 hours a week. We don't have any debt other than two car payments totaling 600/month. The annoying thing is the bank is also factoring in our rent to our debt to income ratio, so they won't preapprove us for anything. I'm so overwhelmed, we are looking at a 200k loan which sounds like it should be simple, but we're getting turned down. We both have amazing credit an have been paying rent between 12001500/month without issues for the past 12 years, but apparently that doesn't matter. Should we just keep calling banks until someone says yes? Even if I get a job they are going to look at the fact that I just started working, so that won't help us until a few years down the road. So far we have only talked to USAA because that is who we do all our banking with. Last year we were in a similar situation, got pre approved for 450k, and then when we went to get the mortgage sht hit the fan and they said they couldn't approve us at all. Since then we paid off most of our debt and saved more money. We thought this time around would be better because we werent looking for as much and had a better ratio. Am I just going to be stuck in an apartment with 3 kids forever?! Any input is so much appreciated. I feel defeated, TIA!

iluvmytxrgr

The military isn't causing you mortgage problems.  It sounds like the people you spoke to aren't understanding your situation.  I would try speaking with another person there. I'd also recommend speaking to other banks to see who can offer you the best plan.  We spoke to 3 different mortgage companies to shop their products before we chose one to refinance through.  

saturdaynightdoubletree

iluvmytxrgr:

The military isn't causing you mortgage problems.  It sounds like the people you spoke to aren't understanding your situation.  I would try speaking with another person there. I'd also recommend speaking to other banks to see who can offer you the best plan.  We spoke to 3 different mortgage companies to shop their products before we chose one to refinance through.  

I didn't blame the military, just said because we are in a unique military situation (reservist on temp. active duty)... it seems like the bank is having a hard time approving us. We definitely will continue to talk to other banks. We've talked to 8 different people at USAA with the same results, so I'm hoping it's just them.

sweetpea2003

I love USAA, have loved them for a long time, but I have heard some HORRIBLE things about their morgage department lately.

I had a somewhat similar experience a few years ago when we were moving and trying to buy a home.  We owned a home in Norfolk and were renting it out and buying a house in Maryland.  We were dual income.  I am a school counselor and had been offered a position in Maryland but I didn't have a signed contract yet (because it was still spring and contracts don't come out until the summer - so I had a strong verbal offer) so they wouldn't use that income.  I was still working in Virginia Beach, but they wouldn't use that income because it wasn't geographically appropriate to our new house.  So... even though I was employed, making good money, would have no gap in my income, etc. they wouldn't consider my income in the approval process.

We used Navy Federal.  I just put a lot of pressure on them.  There is a human element to mortgage approval.  We had our first home loan with them, always paid on time, etc.  They knew I was employed.  I had a letter or intent to remain employed.  But their computer didn't like it.  So I just kept calling, kept talking to their lenders and FINALLY they approved it (on a special basis - they had a special board meeting to approve it). 

So I think there is some value to calling banks that will sit with you, look at your big picture, and approve you from a person-to-person standpoint and not a "when we plug these pre-decided numbers into our all-knowing computer it spits out NO". 

LeahCK

I don't know if you got this resolved or where you stand but try Navy Federal like SweetPea suggested face to face. The other banks are "stuck" with regulations that are beyond their control (I know because I work in that field and deal with regulations on a daily basis). Unfortunately the BIGGEST thing against you is that your husband isn't guaranteed his current position for atleast TWO years (not just one more year). It's a temporary situation. It sucks I know. And if you have been out of work for a length of time your income won't count unless you get back into your field for some time (some investors (FNMA/FHLMC)/banks will take 6 months and a Verification of employment with a letter that you're contracted for x amount of time or forsee you working indefinitely). 

Is there a significant difference in your husband's civilian pay and military pay (active duty)? If so when he returns back to work will you guys be able to make the mortgage payment. Your rent should NOT be included in your DTI (debt to income ratio). The person who gave you a "Pre Approval" LAST year probably was able to 1). use your husband's income for TWO years or 2). didn't run it by underwriting and it would have been rejected as well.

 PM me if you have questions of what the Loan Officer's tell you.