Unfortunately your situation is only too common. I just sold a property to buyers with an FHA loan and it was quite the disaster. We had two buyers who got turned down for their loan at the last minute. Each one could have been turned down much earlier if the mortgage companies had not waited until the last minute to actually review the information provided. Preapproval letters are useless when the lender doesn't actually do any checks until the contract is signed. I lost a significant amount of money because the house looked like a problem property after going under contract and returning to market three times. The successful buyer worked with a mortgage broker who did not get the clear to close until two hours before closing.

Omg! That must be so frustrating. This property we're trying to close on we had made an offer previously and I guess were outbid, but that fell through and we always wondered if it had something to do with the financing falling through (have no idea, just a guess). So if ours happens to fall through it will be the same situation for these sellers, it will be their third time trying to sell this home, great home, but I'm sure that looks suspicious. Well, in a way that makes me feel slightly better knowing it's not just us, but also angrier that they're so lax. I feel like if I pulled this kind of stuff at my job I'd have no clients. Just not sure how they get away with operating like this.

You are not crazy.

Funding a home loan is like watching sausage being made. It always seems as if these loan processer's and loan officers have never done one before. The incompetence is astounding. It's like creating the wheel everyday.

You are not crazy for wondering why they can't seem to get things done. FHA is particularly hard to process due to the high amount of underwriting scrutiny involved. VA is almost as bad. Then, there is their general incompetence.

The processors are going to ask you for a million things twice, things that you provided two months ago in triplicate and are in the file, things that they haven't thought of yet just to piss you off. They will make you scramble.

My particular favorite is the scrutiny of your bank account and credit card charges. Any charge or purchase above "X" amount has be accounted for with a receipt. Don't buy anything for the house until after closing. Don't buy anything other than gas for the car and groceries. Otherwise, you will be questioned and scolded for your profligate spending when in actuality you bought a new refrigerator for the house. It's crazy and maddening.

The one thing that I have learned is not stay silent. Be the squeaky wheel. Call them every day, even twice a day to keep this thing on track. Ask them if the have the appraisal in the file. Ask them if they have an updated credit report. Ask them when they need the last paycheck. Bug the hell out of them. Then, cheerfully provide it. Once you have provided it, call them and confirm that they have received it. Then, call or email to double check that they have received it. While it may be an emergency for you, it's not a priority for them. Do you get my drift?

They want to fund the loan because that's how they make money. But they do it in spite of themselves. Don't be shy about asking for customer service. Get your agent involved, too. Start asking if you are approved? When will you be approved? What is missing from the file? When will the loan package be sent to the underwriter for final processing and approval. Do this both by email and phone call.

It is easier to buy if you get a conventional loan and can put 20% down. But, everyone has to start somewhere.

Sorry you are going through this. I'd seriously think about telling your landlord that you need an extra 15-30 days at your current address. Budget for it and get yourself some breathing room in case this does not go through. Good luck.

It was hard to gauge who was most irritated- me, my attorney or my agent. I asked if there were any obvious red flags I missed when deciding which offer to accept and they assured me there was no way to have known. I have worked with my agent for several years and he works very closely with the attorney so I knew the problem wasn't from our side. This 
last broker irritated my attorney so much she researched the name and found it associated with four different companies in the past year.

Just stay on the mortgage processor. Be annoying to them. I’m on my third house now (just closed in July). Each mortgage process was relatively easy, but I was probably annoying to my processor each time because I’d call to check on status every other day.

And, when you finally do get keys, thank your lucky stars the sellers accepted an offer with an FHA loan! When I sold my last house my highest offer was with someone using an FHA loan but I was worried the home wouldn’t appraise. Ended up accepting an offer that was only $5k less (and $20k over asking price) but buyer was going conventional with 10% down. To be fair, I had 4 offers in 12 hours.

Best of luck to you!