Mortgage Myths Don't buy it!

[Mortgage Guru]

First, let me say that if your looking to get a mortgage after bankruptcy, I would recommend waiting one year from discharge. The best bet is to avoid mortgage brokers and head for a mortgage lender (not a bank) that is direct endorsement from HUD to approve FHA mortgagesTHE KEY IS Brokers do not have direct endorsement to approve FHA loans.

[FilingOnMyOwn]

What if you don't have verifiable income?

[Mortgage Guru]

FHA will verifiy income it is a conventional program. You can be self employed less than two years if you can show you were in that line of work prior. i don't know if that helps

[lostinmich]

Where do you find the "direct endorsement" lenders?

[Mortgage Guru]

ask them if they have FHA loans and if they they have direct endorsement underwriters they will know what your asking. Brokers will no have this.

[Mortgage Guru]

try this link too http://www.hud.gov/ll/code/llplcrit.html

[MTG_BANKER_OH]

First, let me say that if your looking to get a mortgage after bankruptcy, I would recommend waiting one year from discharge. The best bet is to avoid mortgage brokers and head for a mortgage lender (not a bank) that is direct endorsement from HUD to approve FHA mortgagesTHE KEY IS Brokers do not have direct endorsement to approve FHA loans.

This is not true that a broker can not get a loan that is a refer approved. While I work for a mortgae bank and we have a DE underwriter, there is no reason someone else can not get a loan that comes up with a refer approved with alternative credit or just an explanation letter.

Another thing that is incorect is that you will get a refer around a 580 score I have gotten straight approvals with a 520 score before.

This forum is for providing free information to consumers it is not for soliciting business if someone wants to contact you outside of the board then that is fine but you are not allowed to solicit business. Many of your posts have been more solicitations rather then informative.

[Mortgage Guru]

This is not true that a broker can not get a loan that is a refer approved. While I work for a mortgage bank and we have a DE underwriter, there is no reason someone else can not get a loan that comes up with a refer approved with alternative credit or just an explanation letter.

Another thing that is incorrect is that you will get a refer around a 580 score I have gotten straight approvals with a 520 score before.

This forum is for providing free information to consumers it is not for soliciting business if someone wants to contact you outside of the board then that is fine but you are not allowed to solicit business. Many of your posts have been more solicitations rather then informative.

Nick you miss read my statement:THE KEY IS Brokers do not have direct endorsement to approve FHA loans. Therefore they cannot approve a refer. Brokers do underwrite the loans, The broker process's for lenders. They may input the loan to an automated underwriting system but they are still verified by the lender. Brokers are not direct endorsement they would have to be a lender. as far as the 520 vs. 580
thats subjective, you most likely did. as far as soliciting loans I'm not looking to solicit loans here I don't need them I'm quite busy. I'm letting people know much to the dislike of bankers and mortgage brokers there are options they should try for before waiting two years or putting down a large down payment. I have worked for banks and brokered too. I have a good understanding of the secondary market process too. Now we could split hairs over loans here and there but what good will that do? I'm still going to tell people FHA is the way to go.

[georgiagin]

so i spoke with a manager from American Mortgage Services today...he's telling me that he can help us get a loan at 6.5-6.75 within weeks of our discharge. He says it is a branch of a FHA loan and that they basically take it to a manual underwrite and present our case that our good payments for 36 months of our BK are our good credit. We have no outstanding debt that wasnt included in the BK. We have 2 paid for cars and a decent income (80,000/yr)...

Is this too good to be true?

[MTG_BANKER_OH]

so i spoke with a manager from American Mortgage Services today...he's telling me that he can help us get a loan at 6.5-6.75 within weeks of our discharge. He says it is a branch of a FHA loan and that they basically take it to a manual underwrite and present our case that our good payments for 36 months of our BK are our good credit. We have no outstanding debt that wasnt included in the BK. We have 2 paid for cars and a decent income (80,000/yr)...

Is this too good to be true?

I do not think it can happen, the guidelines clearly state 2 years from the discharge, or 1 year with circumstances out of your control they are in a sticky note at the top of this forum. That being said it may be worth a shot I would not give them any money upfront. There is no branch of FHA it is either FHA or it is not. They may have to hold on to your loan for 2 years until it is FHA insurable. I do not think you will be getting an FHA loan. Please let us know how it goes though.

[tofargone]

So on the FHA I understand the discharge out of a 7, but what about the completion of a 13?

[chpxiii]

So on the FHA I understand the discharge out of a 7, but what about the completion of a 13?

This is a very good question. I am close to finishing paying off my chapter 13 and am looking into the possibility of home ownership.

I filed June of 2003. I am supposed to be finished in 2008. I may look to see about paying it off early, but I am not sure yet. I will have to call my attorney first.

So you see I am very close and so I am interested in home ownership and FHA loans.

[MTG_BANKER_OH]

This is a very good question. I am close to finishing paying off my chapter 13 and am looking into the possibility of home ownership.

I filed June of 2003. I am supposed to be finished in 2008. I may look to see about paying it off early, but I am not sure yet. I will have to call my attorney first.

So you see I am very close and so I am interested in home ownership and FHA loans.

You can do it while in a chapter 13 (with court approval) or just after it as well as long as you do not have any new collections while in the chapter 13. And you have a on time payment history in the Chapter 13.