Anyone get an FHA loan prior to 2 yrs. discharge?

[cvmomof3]

I am determined to fix our credit by summer of next year so that we can buy a home. By the summertime, that would mean my husband and I will be 1 1/2 years post Ch. 7 discharge. Has anyone been lucky to get an FHA loan before the standard 2 years mark?

[mrskal]

Did you also foreclose on a home?

[cvmomof3]

I foreclosed on a home back in 2006.

[tobee43]

i don't know a soul.....not a one...

actually i don't even know anyone today other than some first time buyers with big bunks even being considered for a mortgage and they have perfect credit!

[carlsbadmike]

I checked into it myself and was told flat out NO by a major lender.

[tobee43]

well...i don't know who's getting all the mortgage moneys....what first time buyer...just how many can there be.

now we look at all the foreclosures...certainly they are cheap...but who's buying or who can. i actually know people with credit scores in the 800's that can't get a loan...so the banks are full of it..but something is going to have to give with the banks holding out with all this inventory...one would hope anyway...

what about the VA...if you are a vet...i wonder??

[DebtEnder]

If the house is in a rural or at least semi rural you can look into a USDA backed loan. I have heard people on this forum getting a loan in about 6 months after discharge via them. Location matters, but income does as well, ie needs to be lower. Issue is it has to be somewhat in the boonies. Here is a map of calif with info about areas that are ineligible.

http://eligibility.sc.egov.usda.gov/eligibility/eligibilityAction.do?pageAction=countyMapList&st=ca2&state_name=Southern%20California&st_cd=06&map_region=2

[tobee43]

<--------in the boonies.....i wondering....i have heard about the USDA loans...just never thought of them...what about VA???

thanks great info!!

[LSUTiger32]

The problem is finding someone who will work it for you. I am in the process of trying to find someone now and it's not easy. You would think these brokers need loans but maybe they know it's a slim chance anyway.

[tobee43]

The problem is finding someone who will work it for you. I am in the process of trying to find someone now and it's not easy. You would think these brokers need loans but maybe they know it's a slim chance anyway.

isn't that the truth....we aren't trying yet....we will wait the 2 years and then the banks will either begin lending or all these houses they foreclosed on will rot....

besides...how many just on this forum have lost their house??? many i'm sad to say...including us. living in our home 33 years and losing our jobs ....never being late in 40 years....now means we should NEVER be able to own property again...i sure hope not. but if so...then our economy will recover even slower and there will be many a ghost town across this country....houses sitting empty.

[Ugh07]

The problem is finding someone who will work it for you. I am in the process of trying to find someone now and it's not easy. You would think these brokers need loans but maybe they know it's a slim chance anyway.

Your situation is im betting quite a bit different than the OP's though. You I suspect will find someone to do the loan(though perhaps not easy). Without extenuating circumstances there is just no way to do it before the 2 year mark. The loan would be uninsurable and the DE could lose their cert.

[tonyahunting]

We are 18 months post chapter 7 and in the loan approval process either fha or usda, i will let you know. Also, guidlines are not as tight as you think. My sister just got approved for an FHA loan, her credit is a 640. She has a bankruptcy from like 10 years ago, but it can happen. Every case is different so you never know. Also usda eligible places may not be out in the boonies. We live in southern california in the inland empre and there are several eligible cities like beaumont, adelanto, crestline, lake arrowhead, and so on. So, you may not be way out in the middle of no where they just have to be in a city with a population under 20000. You would be surpised how many places qualify, i was.

[DebtEnder]

Yea look at the map, if your not near a major city you should fall within the coverage area. I have only really looked at the Atlanta area as that is where I live near.

[Ugh07]

My sister just got approved for an FHA loan, her credit is a 640. She has a bankruptcy from like 10 years ago, but it can happen. .

Assuming income is there that loan should be a slam dunk. She could even go conventional. 10 year old BK's have no relevance at all.

[tonyahunting]

I was just pointing out that loans are out there, regardless of bankruptcy or not. Everyone I talk to and almost everyone on here is so convinced no one is getting loans. The truth is they are. We are looking real good and as I said are only 18 months post bk. The process is taking a while but it is happening. In our favor we make 100k a year and our scores are 650, 620. We have no lates, and restablished credit, also bk was due to medical bills mostly due to an emergency csection. We included a few other bills because our lawyer told us to like our our car loan. Anyway, everyone out there hoping to get a loan, dont give up. Work on your credit, save money, keep down bills, and pay on time. It takes some work, but is so worth it. We are so excited about how our finacial life has turned around. It can happen.