Has anyone every heard of an FHA home loan falling through once it’s been pre-approved by the automated system?

I recently applied for a FHA loan to buy a home in another state b/c my husband's job is relocating him. We own a home in our current state, and the loan officer said we were approved after submitting documentation (W-2s, pay stubs, etc) verifying we had the income/assets to carry the costs of two houses. Our FHA financed home in our new state will be our primary residence; we likely plot to rent out our current home to wait out the terrible market. Our LO said we don't have to list our current home as an investment property since we haven't listed it to rent. He also said that they pretty much don't care what we do with the current house since our income shows we can carry both mortgages and still fall in line with their desired DTI ratios. I'm just worried things will fall through b/c they'll choose for some reason we can't have two mortgages. Is this a senseless dread?

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One Response to “Has anyone every heard of an FHA home loan falling through once it’s been pre-approved by the automated system?”

  1. Fort Sill Army Wife says:

    Yes I have heard of them falling through and until closing they can turn you down for any reason they see fit.

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