Author Topic: Better.com Denial due to Non-Resident?  (Read 494 times)

patjk

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Better.com Denial due to Non-Resident?
« on: January 21, 2021, 05:51:56 AM »
Hello,
For the last month and a half I've been working to buy my first investment property. I'm about to close on a loan with better.com, and they are now saying they're having a hard time verifying my US residency, causing a potential denial.  I'm unsure why/how this is relevant as I'm a US citizen, with US business/banks/brokerage accounts, but I spent a lot of time overseas (my business is online so I spend a few months a year in the US and a few months a year abroad). 

I do have a US residence I share with my brother and a PO box I ship all my mail to.  I do pay taxes in the US (they have my 2 latest returns), though I'm likely not considered a resident as I spend a lot of time overseas and with covid, I've spent the last year overseas (not a big incentive to go back right now and safer where I am now).  I read this wasn't an issue and even asked ahead of time, but now at the very end they are saying they may deny it, even though I'm probably one of the least risky clients they could take on, and have proven so (with countless uploaded documents).  

The property is a single family house in IL for $160,000, with downpayment of 25%, better.com gave 2.75% loan for 30 years of $120,000.

My income is $120-180k+ each year, with assets over $1.2M+.  The business did $1.6M revenue last year, and plan to beat it this year.  Credit rating 815+, with no debt.

Does anyone know a lender that would work with me? I'm very surprised by better.com, disappointed, but looking for a plan B in the event they deny the loan.  Any suggestions would be appreciated.  Closing date was originally Feb 4th, and have an appointment with the local US embassy for Feb 9 to sign/notarize the documents.

Thanks.

WanderLucky

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Re: Better.com Denial due to Non-Resident?
« Reply #1 on: January 24, 2021, 03:57:32 PM »
I had a shitty experience with Better.com also. I'm not sure what their issue was, but I think it was the fact that I had both W2 and biz income. Anyway, they dragged me along for the ride for months, and I finally just went to a local credit union and got approved within a few days. I would suggest a local credit union.

cool7hand

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Re: Better.com Denial due to Non-Resident?
« Reply #2 on: January 25, 2021, 04:53:46 AM »
If you are overseas a lot without the more ordinary connections to the US, the lender probably has in its algorithm that people in your position are more of a flight risk. It sucks given your other numbers, but don't take it personally. Another lender will jump at the opportunity!

SndcxxJ

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Re: Better.com Denial due to Non-Resident?
« Reply #3 on: January 26, 2021, 11:18:45 PM »
I also had a bad experience with better.com.  I was assisting a family member with a handful or refinances and they denied the loan based on income, even though the income was many times higher than necessary by Fannie Mae guidelines.
Many brokerages are adding their own "overlay" guidelines on top of Fannie Mae guidelines making lending more restrictive across the board.  I would suggest the following brokerages, some of which may not want to take up your file:
Quicken.com
Loandepot.com
Interactivemortgage.com (California properties only I believe)
Local brokers are always worth a try