Consumer complaint received 2023-02-13
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: Academy Mortgage Corporation (AZ)

We were working with Academy Mortgage to purchase a new home for our family of XXXX ( we have XXXX children ). They knew our situation, had pulled our credit report, had all financial documents and all the information they needed for weeks. We were set to close on our new home on XX/XX/XXXX. We sold our current home and had moved out on XX/XX/XXXX. All of our things were in a XXXX XXXX and we were staying in my mother in laws home ( a XXXX room townhouse with our family of XXXX plus her ) for those two days until we closed on our new home. We had the proceeds from our home sale wired directly to the title company for the purchase of our new home. Additionally, my father in law also wired $ XXXX as a gift to help cover closing costs. We received and signed the initial closing disclosures around XX/XX/XXXX. At XXXX ON THE DAY WE WERE SET TO CLOSE on the new house, the loan officer XXXX called me and said that we originally had an automated approval but because my father in law was giving us the $ XXXX gift, that prompted a manual review and NOW the only way we can have the loan funded is if we put down 10 % ( as opposed to the 3.5 % they had told us all along ). That wouldve required us to pull an extra XXXX XXXX DOLLARS out of our rear ends the day we were set to close!! Again, we were in a XXXX room townhome with XXXX people that we only had until THAT DAY to be in! We had already enrolled our kids in their new schools, paid deposits on utilities at the new house, the sellers of the new home had already packed up and moved out etc.. and now we were all completely screwed with no where to live and having to back track and un-do all the changes and updates. I also want to mention that as a small business owner, we were told that we needed to file our XXXX taxes and that the net profit had to be at a certain level to get approved. We messaged the woman at Academy Mortgage while filing our taxes and she said the net profit may be showing as too low so we had to reduce quite a bit the LEGITIMATE business expenses we were claiming so that our net profit would be higher, causing our taxes owed to increase by XXXX XXXX DOLLARS!!! and in the end we were told to come up with XXXX XXXX more or not get the house. So now on top of everything else, we owe the IRS $ XXXX in taxes that we shouldnt actually owe. Weve worked with Academy Mortgage before and had a great experience, and so I actually felt kind of bad to file this complaint but it was so egregious and has such a HUGE negative impact on me, my wife and kids lives that I couldnt not report it. To be very clear ; the issue is not that we didnt qualify at terms we could work with. The issue is the way it was done and the fact that we were strung along for 3 weeks when everyone involved knew and had all the information way before the closing date and yet they waited until that day to tell us that the down payment required had increased DRASTICALLY and if not met, there was no way we would be approved. THE DAY OF CLOSING!! Completely unacceptable, unprofessional and quite frankly un-human to do that to a family.