OK, Can anyone clarify loan qualifications?

[bjbk01]

I have spoke to a few lenders who say basically the same thing, which is, You Cannot Get Financing Period, Until 3 years after the sale of the home that was included in the b/k. On this site I've seen several posts with people saying they have gotton mortgages much sooner than the two year or three year mark. Can anyone clarify this who know what there talking about. By the way, I live in MN if that matters.

Thanks!

[LSUTiger32]

You are not going to find anything within two years. The only exception I've ever seen was the Rural Development loan thing. Otherwise, it is 2 years from the BK discharge date or 3 years from the final foreclosure date if you had a home foreclosed on as well. This is with FHA financing....conventional financing easily adds one year to each of these if not more.

[dspii]

FHA has guidelines for BK and foreclosure individually....what they don't have is if you file BK then foreclose on a home included in the BK. Unfortunately underwriters and most banks keep it on the safe side...since there is no clear cut rule....and make you wait 3 years after deed is transferred from your name. There are exceptions but like LSU said...forget it for 3 years after foreclosure completion.

[HHM]

Care to point out those posts, I can't recall anyone getting a loan sooner than 2 years (without significant special circumstances or using specialized financing).

Bottom line, if there was a foreclosure or short sale, it is "minimum" 3 years from when the deed transfered out of your name, period (short of a, rare, specialized program).

[dspii]

HHM - one correction, if you are current on your mortgage payment and successfully close a short sale, there is no waiting period.....except the 2 year BK wait. If your deliquent on your mortgage and close a short sale.....the waiting period applies.

[hopejones]

We are 2 years post Ch7 discharge. We are doing a ride thru on our home. We are current on mortgage payments. We have mid credit scores of 660 & 661. Hubby was in the military so we can get VA certification. So, we can get a new home now?

[HHM]

We are 2 years post Ch7 discharge. We are doing a ride thru on our home. We are current on mortgage payments. We have mid credit scores of 660 & 661. Hubby was in the military so we can get VA certification. So, we can get a new home now?

Yes, it is 2 years from BK discharge
But 3 years from a foreclosure and a "defaulted" short sale.

dspii, FHA still has a 1 year waiting period on a non-defaulted short sale. But it is easier to get a hardship waiver (also, for the most part, the only way to get a non-defaulted short sale is to have some sort of hardship in the first place.)

[dspii]

HHM - I'm relocating from Ohio to Nevada and hedging my "new" mortgage that I won't be penalized by staying current on my payments and short selling my house. From the research I have done, FHA will allow one to qualify if certain issues apply......such as no defaults, no mortgage deficiency monies due, and you can't sell and buy another for the purpose of a buyers market.

[wendijo11]

I am a loan officer in Las Vegas, NV so we deal with this a lot obviously and I have been researching the 2 yr vs 3yr for repurchase on an FHA and VA loan for 7 months to try and get the correct answers. I have been a loan officer for 13 years so I am very knowledgeable in the business and have consistently closed loans in the most severely distressed market in the Country. I only point this out so you know that the information I am giving you has been well researched in great detail.

FHA is ambiguous in guidelines about bankruptcy and discharge of debts that include mortgages so until they clarify as everyone on this forum is saying it is 3 years from Discharge, However, VA provided some clarification and I just closed a loan that we used the 2 years from discharge of the bankruptcy and they had included 2 properties in their bankruptcy.
My borrowers had declining income that was severe enough due to economic devastation in their industry that we documented and that was considered to be an extenuating circumstance as their income , which is documented in your BK papers over the past 3 years, btw, showed a sharp decline that would have been impossible to liquidate the properties as before they knew it they were under on the properties and had a 50% decrease in income.
VA looked at this situation and confirmed that they view properties in a BK to fall under the 2 year repurchase time frame after discharge.
Not sure what loan officers you work with in North Dakota, but they can call the VA directly to have them confirm this but like I said I just closed and funded the above situation.

[B65]

Wendiijo thank you for your insight! We are about to close on a home in 4 weeks using the VA. It has been 2 years and 1 month since chapter 7 discharge, the house IIb was take 6 months later so it will not be 2 years until Nov. The underwriter took into account, that we moved out of the home just after the discharge and a job loss. so they used the bankruptcy date, I will report back at closing. thanks.

[chrisdfw]

I just spoke with a loan officer for a company that underwrites their own FHA loans, and he assured me that credit wise I qualify based on 2 years elapsed on the BK. My home mortgage was included in CH7 and discharged, but I still pay as I still live in the home and they have a lien. I still need three tradelines on the bureau or will have to use alternative documentation (utilities etc). They also said credit scores are looked at now and 620 is a minimum, with 640 being somewhat better and over 660 the easiest to get everything done (mine were all over 660)

So unless there was a foreclosure, it appears the FHA rule is two years after discharge.

I still don't qualify until I start my new job because of income, but it was nice to know I will soon.
(Having 40,000 to put down doesn't hurt either)