Reply to aswer

You need to make sure the person who was buying it was going to occupy the property.  FHA does allow a 4 unit building to be purchased but only as an owner occupied property.  (the new buyer would actually have to live in one of the units, but can rent out the other 3)  Otherwise, it would be considered an investment property and FHA cannot do the loan. 

I already checked the loan limit for NJ and that is fine.  I do not understand why you shouldnt have received a commitment letter unless something is wrong with the approval for the buyer. 

Another thing is how quick the buyer is getting the information that is needed to the loan officer handling the loan.  I know I have closed FHA loans in two weeks for very agressive buyers, but when they are not in a rush, it can take a long time.

Another thing to keep in mind is if the customer having to go thru a manual underwrite, it can take a couple extra weeks, but not 6 weeks. 

You may want to double check with the loan officer handling the loan.  Also find out if the appraisal has gone thru appraisal review yet.

Good luck

Anne

thank you , its 7 weeks since appraisal was done, still no comitment letter, realtor

wife is buyer with exelent credit, realtor asures me they qualify and since its an fha on a 4 family it takes longer. it was appraissed far more then what they want

to borrow, 2 month since contract was signed and closing was for july 3, i do

not cancelled cause i have no other buyer, but i dont know if i am wasting my

time waiting. bills are piling up, cause they wanted 3 apartments vacant, i only

have 1 rented,  can i sue and collect money if i cancelled.

As far as if you can sue, you would have to check with a local real estate attorney in NJ.  You should have the right to cancel the contract if the contract date has expired and gone past any extension dates.  It is up to you.

If you like, I can try to find out some information for you in NJ since I work for a national FHA lender.  Ask if a case number has even been assigned to the property.   I would think since the appraisal was done 7 weeks ago, it should have closed long by now.  There isnt that much difference between a Single Family dwelling and one with 4 units. 

Another thing I dont understand is why they wanted them vacant.  They can actually use the leases to help them to budget and reduce the debt to income ratio which has to be 31% of the gross income.  Max total bills cannot exceed 43% of the gross income.

One very important thing as well is they need to be able to prove all of their income. They cannot go stated on an FHA loan.

This is a very confusing loan.  It could be the loan was structured wrong to begin with.  If it was me doing the loan, I never would have ordered the appraisal until I knew the loan had already been approved.

I just got a loan yesterday on a similar situation where the buyers should have been in the house a long time ago and they still hadnt gotten anywhere.  I had them doc'd out yesterday and approved (it was an automated accept verses a manual underwrite)  I should have the loan closed in about two weeks.  And this was on a manufactured home, which are hard to get approved these days.  A lot of things these days depends on the experience of the loan officer handling the loan.  FHA loans are different than subprime loans, alt a loans and conforming loans.

Let me know if you need anymore help.

Good luck

Anne

he wanted it empty to fix it, and resell it,

thank you , do you have a web site

i read another loan officer said it can take up to 3 month, dont know if its true

if fha loan was not approved would  fha  have sent a letter or nothing

There lies your problem!!! 

They are trying to purchase it as an investment property.  FHA will NOT do an investment property...PERIOD!!!!  They have probably realized that and are trying to find a mortgage company who will do investment properties.  In this day and age, they will need about 25 to 35 % down on the property.  It doesnt matter what the appraisal came in at (unless they are going to use a hard money lender) the lender will ALWAYS go off of the sales price or the appraisal value, which ever is lower to base the loan off of.

I would probably give them and ultimatim and tell them to find the financing and get proof they are approved, or else I would start renting out those units again to help you pay the bills.  It is not fair to you.  The loan officer should have known this at the very beginning.

I am sorry you are having to go thru this.

I wish you all the very best.  Hang in there.

Anne