Consumer complaint received 2022-07-08 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: PENTAGON FEDERAL CREDIT UNION
State: IN

Complaint narrative:
My Name is XXXX XXXX, residing at : XXXX XXXX XXXX XXXX, XXXX XXXX, IN XXXX Phone : ( XXXX ) XXXX, email : XXXX. Complaint as follows : Today 's Date : XX/XX/XXXX. 

I applied for an FHA XXXX Fixed loan for a new construction home loan with an interest rate of XXXX and was pre-approved by PENTAGON Federal Credit Union located at XXXX XXXX XXXX XXXX, XXXX, VA. XXXX XXXX  # XXXX on or around XX/XX/XXXX. I am working with XXXX XXXX XXXX : # XXXX. XXXX XXXX was provided with an on-line application in addition to all the necessary documents proving verification of income from XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, in addition to a credit report, bank statements, tax records and all the necessary documents in order to process the loan without delay. These documents were faxed on XX/XX/XXXX supporting the pre-approval notification.Sixteen pages of documents were faxed from the XXXX office located at XXXX XXXX XXXX, XXXX, IN XXXX. XXXX was also provided a sales contract from the new home construction company under the name of XXXX XXXX, XXXX, IN by XXXX XXXX XXXX. Both myself and XXXX XXXX assured the documents and sales agreements were forwarded correctly. The original income verification consists of the following : Social Security XXXX XXXX of an annual benefit amount of {$11000.00} or {$990.00} per month, in addition to Pay-stubs from my employer for XXXX consecutive months, in addition to Bank Statements for XXXX months from XXXX XXXX XXXX XXXX XXXX XXXX, IN in addition to filed Tax documents starting from XXXX thru XXXX. PenFed was informed that a down-payment in the amount of {$26000.00} would be provided on a loan amount of {$260000.00}. The funds were also verified and included in the bank statements provided them from XXXX XXXX XXXX XXXX. The documents prove that a total annual income of {$47000.00} is the amount. I have a total debt of {$70000.00} and a good credit score of XXXX through XXXX. {$59000.00} of that debt are Educational loans of which PENFED was provided a statement of INCOME DRIVEN REPAYMENT PLAN OF {$74.00} PER MONTH.. Secondly : I received a decline notice from Penfed claiming my debt ratio 's were not in line with what they needed for approval. Upon speaking with the representative XXXX XXXX in addition to XXXX XXXX, PenFed 's income information is incorrect. I have provided them with the income I currently receive from both my employer in addition to the Social Security Administration. The total annual income is as stated above at {$47000.00}. 

On XX/XX/XXXX I added a co-applicant XXXX XXXX XXXX who is my biological child to my original application, which forced me to make an additional application to the original that was denied. The co-applicant has no established credit, and has no outstanding debt. The co-applicant 's annual income is {$28000.00} which should be added to my annual income of {$47000.00} with a grand total income of {$75000.00} with a total monthly debt of {$750.00}. These debt ratio 's are sufficient enough to be approved. I currently pay {$1500.00} per month for a leased rental house through The XXXX XXXX, XXXX XXXX, IN under the directioin of XXXX XXXX XXXX. I am on a term of XXXX year and the delays experiencing through PENFED are placing me at a great risk for financial upset and homelessness of which I will not allow to occur. My rent is paid on time and in good standing with XXXX  XXXX XXXX. I have rental reciepts proving I am in good standing. I was informed by PenFed that XXXX XXXX XXXX 's income could not be used for income on the loan agreement due to the fact that he has no established credit. Any lapse in income for both myself and XXXX is due to change of jobs where an increase in pay is the cause for concern. These issues have been proven to be accurate to both PENFED Credit Union as well as the XXXX XXXX, XXXXXXXX XXXX for PENFED Credit Union.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation