FHA Manual Underwriting

[tkfourtwo1]

Has anybody with the discharged Chapter 13 gone through this? I'm trying to do a cash-out refi to pay for home improvements.

Here are my stats:

Chapter 13 discharged: 12/14/07

Clean credit, no lates for well over three years.

Only credit is mortgage (current) car payment (current - new car purchased Feb of 2008) And bank line of credit (no balance)

Middle FICO score: 704

DTI: 19%

LTV: 77%

Mine loan is in underwriting right now and I'm really stressed out by the whole process.

Thanks

[justbroke]

I don't see any problems, especially if you paid on time throughout your chapter 13. FHA seems to respect that.

[oldhack]

I was recently in a similar situation, though not identical:

• Ch. 13 discharged 1/09
• No lates for 4 years+
• No credit lines other than a no-balance overdraft line of credit at local, non-reporting bank
• Middle FICO 642
• DTI: prior to mortgage, 0%; 18% afterward
• LTV: 97.5%

I was approved for an FHA loan for a new-purchase home, taking c. 7 weeks from formal application to close. The only 'hiccups' during manual underwrite were minor, relating to documenting non-traditional trade lines.
I think you have reason to be hopeful. Best of luck.