Mortgage/Real Estate Misleading

georgia- during my first home buying experience i was referred to a real estate agent(re) by a friend. i explained i was unaware of what was involved in buying a house. he recommended a mortgage broker that he said worked with him. while talking to the re agent and the mortgage broker i asked about different types of loans, mainly first time buyer and fha. i was told by both people that i made too much to qualify, and that i needed to go with a conventional loan. my income at the time was 27k/year. being ignorant i went with the loan. i became suspicious when i over heard my re agent talking to the broker about somebody else who my agent was sending to the broker. the agent and broker were discussing that they needed to convince the buyer that he did not need an fha loan. after all was said and done i learned that the mortgage broker is not even certified to do fha loans and he was high school buddies with the re agent. do i have any recourse?

[HomeGuru]

Originally posted by savPIG
georgia- during my first home buying experience i was referred to a real estate agent(re) by a friend. i explained i was unaware of what was involved in buying a house. he recommended a mortgage broker that he said worked with him. while talking to the re agent and the mortgage broker i asked about different types of loans, mainly first time buyer and fha. i was told by both people that i made too much to qualify, and that i needed to go with a conventional loan. my income at the time was 27k/year. being ignorant i went with the loan. i became suspicious when i over heard my re agent talking to the broker about somebody else who my agent was sending to the broker. the agent and broker were discussing that they needed to convince the buyer that he did not need an fha loan. after all was said and done i learned that the mortgage broker is not even certified to do fha loans and he was high school buddies with the re agent. do i have any recourse?

**A: yes, you got steered into a loan program that the mortgage broker could do.
Now you need to do your homework and investigative reporting. This is not going to be easy but stick with it if you want to make a case.
Go to the FHA site [url]www.hud.gov[/url] and check out their underwriting requirements so you understand things like maximun loan amount, qualifying ratios, gross income to qualify, loan-to-value, points etc.
Then estimate at the time you locked in your conventional rate, what interest rate and points you would have gotten, monthly payment etc. Then compare these figures to what you paid. If your cost and monthly payments were lower with the FHA loan, then you may have strong evidence to support your case.
There are many other factors involved but this scenario is the basic.
Look into filing complaints with the State against both licensed broker/agents.

thanks. i wrote hud at their general email address to see if somebody there can direct me to the right person. also emailed an attorney to see if they can help.

[HomeGuru]

Originally posted by savPIG
thanks. i wrote hud at their general email address to see if somebody there can direct me to the right person. also emailed an attorney to see if they can help.

**A: you gotta do more work than that. Gather the evidence so you got something concrete to discuss.