My wife and I are trying to buy a new build from Richmond American. My credit is low, ~ 615 when we started the process. Richmond was offering closing credits to go through their preferred lender so we applied to them for an FHA loan even though my numbers were a little lower than their requirements (620 minimum for their program). Their preferred lender denied our application so we moved on and went with a different, third-party, lending company. That was back in February.​Fast forward to today. The third party company requested that the previous lender that denied us, send them our file so that they could explain why they denied us and see that we had made improvements to take to their underwriters. Apparently, everything looked ok so when they sent the application to FHA they were expecting everything to go smoothly. I got a call from the lending company saying that Richmond’s preferred lender submitted a “hard denial” and attached my social to a case number for that denial. The way it has been explained to me is that I essentially cannot re-apply for an FHA loan until 6 months after the date that Richmond’s preferred lender submitted the denial.​The issue we face is that we were set to close on May 31st with Richmond. I’m sure once Richmond hears this they will likely take it to market and we’ll lose the home we essentially built. Is there anything I can do or we can do to get around this? We’re looking into non-occupying co-borrowers, however, they all have mortgages so their DTI is too high for a the loan types we’ve looked into.​We still don’t completely understand why Richmond’s lender submitted a hard denial instead of just denying the loan application rather than attaching me to a case number that’s attached to our property.


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