FHA and Quicken Loans Nonsense

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NEastUnlmtd
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Post by NEastUnlmtd » Thu. Oct. 27, 2016 3:49 pm

I recently went through a refinance and scored a nice new rate on the balance of our mortgage. I wanted to post up just in case anyone has to go through what I did in the process. Numerous Quicken Loans staff people informed me that coal was not an acceptable fuel source to heat my home. It was reported to me that this was an FHA policy. This is not the case. In the end the Quicken people graciously allowed for my furnace under an "exception". I told them that sounded good but in fact they were dead wrong.

I had contacted FHA and was quickly referred to a written heating policy that does not exclude any fuel source but merely covers "comfort" and "thermostatically controlled" systems, which I in fact own. That was a confirmation of what I had come up with with 5 minutes on the Google. Why Quicken couldn't do that I have no idea.

I can't say exactly why this came about. The pic of my furnace in the appraisal maybe? Although, the same appraisal/inspection acted as a stamp of approval. Staff incompetence could have been a factor. I was switched from customer care specialists to solutions consultants to someone on their online message board that was nameless that was very firm about it being an FHA rule. I did get them to put some of it in writing but mostly they left the FHA excuse to verbal communications with me. They were serious too, I had calls that were essentially saying sorry you cannot close... I of course stuck with it.

My loan amount was pretty small considering what other people are up to, that might have been a big part of dropping/trying to drop me.
I don't know why it was resolved either. I explained my case extensively, the appraiser tried to as well. Near the end (it went on for a couple weeks) I pointed out that I intended to take the matter to the highest levels I could find and that it seemed like a viral story to me.

I have a coal furnace in my home, not unlike many in the region and obviously on the forum. Mine is a bit different being a re-converted conversion and all but those particulars were not a factor in the situation. This company either willfully or due to ignorance nearly failed to close on an FHA loan that I was very eligible for and stated that it was due to not owning a furnace with an "acceptable fuel source".

Just for your information, I barely found a mention of this type of situation and I searched of course.


 
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SWPaDon
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Post by SWPaDon » Thu. Oct. 27, 2016 4:17 pm

I had no problems refinancing through FHA with a coal furnace as my main heat source.

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