USDA mortgage - 10 months after BK7 Discharge!

[awayalways]

*NEW* Income limits for USDA loans changed on April 20, 2009. The existing income limit structure will be revised for the Single Family Housing Guaranteed Loan Program (SFHGLP). A two tier income structuring consisting of a 1 - 4 member household and a 5 - 8 member household will replace the 1 - 8 person structure. ie...easier to qualify.

[kathuizar]

That is SO AWESOME! We have been looking into the USDA loan too but it is so hard to find a lender in California that will do this by the USDA guidelines. We are still looking! We were just discharged and have been working on our credit. One of the creditors, the day after discharge, charged off the debt. So now I have to try to get that deleted. I am SO excited for your USDA loan!!

[OneDay]

Interesting..
Time to read up...

Loan programs...
Section 502 DIRECT LOAN info
Section 502 GUARANTEED LOAN info


ELIGABILIY:

Families must be without adequate housing....

Can anyone define adequate? lol

[awayalways]

Interesting..
Time to read up...

Loan programs...
Section 502 DIRECT LOAN info
Section 502 GUARANTEED LOAN info


ELIGABILIY:

Can anyone define adequate? lol

Anyone surrendering their home in bankruptcy, in my opinion, would be "without adequate housing".

[Ugh07]

Can anyone define adequate? lol

In practice it basically means you cant own any other houses. For instance, if you were planning on buying a house and renting out the home you currently live in, that would not be acceptable.

[rf99k]

Help!

The USDA website has a list of approved lenders. Contact whoever you prefer in your area and then ask them for an application. In my case, I went to the bank with a copy of my credit report and explained my situation. They gave me an application to fill out, and a week later I returned with all the information they requested. Another week and I received a pre-approval letter from them. Then get a realtor to find a home that meets all your lenders requirements. The USDA website has a page where you can enter an address and it will tell you if it is in a USDA approved area. Generally these are outside the city limits.

After you find your dream home, and the seller accepts your offer, the lender will order a survey, appraisal and such. Provided this is all good, the final step is USDA approval. My lender submitted my application to the USDA online and received an answer in 2 days.

I hope you can find a good home too.

Awayalways,

I am in Florida (Manatee County)and I am haveing trouble finding a lender that will allow me to apply for a USDA loan 2 years after my ch 7 BK. Can you please tell me the name of the bank/ lender you used so I could apply with them? You can also email me at [email protected] if you wish. Thank you very much!!!

Ryan

[kathuizar]

Hi I also have a referral for you, his name is Shane and he is a Mortgage Broker. He deals with a lender in Florida. His email is. [email protected]. He does a lot of USDA loans.
Kathie Huizar

[kathuizar]

Bankruptcy filing

We just came out of the bankruptcy discharge and have been working on our credit. We are working with Shane and as soon as my husbands fico score reaches 660 we will be working on getting a USDA loan. He uses a lender in Florida that goes by the USDA guidelines that says that you can get a home even if you had a foreclosure or bankruptcy as long as your middles fico score is over 620 (Streamline loan) but 660 is better. So hopefully our situation will warrent it. The credit score is now almost at 660.

[tika]

WOW....this is a great post especially now! I am in a home with owner finance and will need to get it in my name as soon as I get my discharge due in July 09 sometime. I hope we could use them for us. I know it is a different situation but I dont think it is considered refinancing??

[kathuizar]

Yes, the USDA loan is FICO score driven. So it really depends on your score and your situation or circumstance. (The USDA loan also has income & area guidelines so you can google the USDA loan and get their website and see how the income works and put in your address and see if it qualifies.)

[jmanford]

What is the name of the lender that gave you the loan?

[rmcmorran]

Hi,
I was looking into the income elig. and when I finished I rec'd this notice:
Applicant is ELIGIBLE for the Section 502 Guaranteed Rural Housing Loan Program and INELIGIBLE for the Section 502 Direct Rural Housing Loan Program based on income entered and Program Income Guidelines in effect as of 08-31-2011. (Applicant must show repayment ability, have a reasonable credit history for the loan requested, and must meet other program requirements.)
Contact Us for further details on the Guaranteed Loan Program.
Contact Us for further details on the Direct Loan Program.

Can someone help me with what this means?
Congrats on a mortgage that is FABULOUS!!

[JvilleGarden]

I have sent Shane an email to see what he can do for us. Our Ch 7 was discharged in March, 2011. Credit score was 627 a couple of months ago, haven't checked it since we cleaned up the reports. We are wanting to move into a rural county, one of the counties on the list, and we are finding some pretty sweet deals if we can get the mortgage. I'll keep you all posted...

[JvilleGarden]

9/22/2011

Based one one of the link in this thread, I sent an email to a mortgage broker that works with the UDSA program. Here is the information that he gave me.
" Since your house included in the BK was a government loan (FHA), you would have a had time qualifying for a new government loan so soon after defaulting on the first one. Further, USDA also requires a 3-year waiting period on a foreclosure, unless the foreclosure was due to extenuating circumstances (major medical event, death of a wage earner, etc.), then only a 1 year wait would apply." "Once the foreclosure happens (which is a separate event from the BK and rarely coincides with each other) then it will be at least 3 years for USDA financing, 2 years for VA financing (if a qualifying veteran), or 3 years for FHA financing, and 7 years for conforming (Freddie/Fannie) financing....and those programs make up about 95% of the loans being made today. The rest are hard money / private financing / seller held mortgages / non-conforming loan programs for great credit but unique situations, etc. Nothing for a recent foreclosure."

So, it sounds like there are extenuating circumstances that can shorten the timeframe, but the 3 year rule would apply for most of us.

[tradinglife]

sounds too good to be true....

Every realtor and lender I talked too says 3 years wait on any loan, including USDA. My concern is even though our chpt 7 has been discharged 1 year ago, the house we included in it is still sitting empty, foreclosure procedding havent started yet. At this rate, it may be another year before foreclosure is processed and home is sold. So then we have to wait 3 years after the sale date?!! wow! That is pretty depressing, especially since we are paying 1000 a month rent in an area where we could buy a nice home for less if we had financing. Sounds like it was a complete fluke that the original poster got financed without the waiting period, Congrats to you, for the rest of us I hope they make some changes in the program in the future.