Upper Marlboro, MD asked in Uncategorized for Maryland

Q: I need assistance with a matter. My Closing Docs., Deed of Trust, and my credit report state that I have an FHA mort.

yet my loan servicer has stated that my loan is insured by them and that I have a conventional loan. I paid UFMIP at closing and monthly MIP which is required for an FHA in my monthly statements, how can the mortgage now all of a sudden be a conventional loan? The UFMIP was close to 9k alone, none of my home buying documents are accurate or represent that I have a conventional loan. I feel like there is misrepresentation with my mortgage loan and I have no idea where my 9k went if it did not go to FHA regarding UFMIP. I was not notified of any of this during or post-closing and the only reason why I found out was because I tried to put in an FHA partial stand-alone claim and they stated I could not because I have a conventional loan. Any assistance would be greatly appreciated.

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1 Lawyer Answer
Mark Oakley
Mark Oakley
Answered
  • Rockville, MD
  • Licensed in Maryland

A: Dig out your loan application and your loan approval letter(s), then look at the actual lender documents, deed of trust and promissory note your signed. That will govern. Mortgage insurance premiums can be required for conventional mortgages as well as FHA mortgages, and generally are for mortgages that finance 90% or more of the purchase price. Perhaps your mortgage broker (or whomever you used to assist you in finding financing) tried to qualify you and the property for an FHA loan and you or the property would not qualify under the FHA guidelines, therefore they found alternate financing. This is not uncommon, although you should have been told what the situation was; however, you certainly would have had to sign all the necessary loan documents and applications for the loan you obtained, so what you are really saying is that you signed without reading what you were signing. That may preclude any claim you have, unless you can prove the loan processor deliberately misled you and hid what you were signing from your own eyes. It is unclear what damages, if any, you have suffered as a consequence of getting a non-FHA loan. If this transaction did not qualify for an FHA loan, would you have walked away without purchasing the home? If not, and you would have proceeded as you have anyway, then you are in the same position you would have been in had you known it was not an FHA loan.

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