Successful mortgage right after discharge?

[bostonit]

I've got two months left in my 60 month chapter 13 plan and I'm really looking forward to buying a house. My mortgage guy thinks he can get a conventional loan since my income, job history, and credit score are pretty good. Has anyone here actually been able to get a non-fha loan right after discharge? Thanks

[justbroke]

A conventional loan? Typically those require bankruptcy is seasoned (past discharge) by at least 2-3 years... some may even be 7 years! FHA is probably your best bet. I don't know the technicalities, but it seems to me that it's easier to get a mortgage while you're still in a successful Chapter 13! Even FHA allows this after one year of good payment history. I would think about this and start shopping.

At least, those are my thoughts.

[bostonit]

Thanks. Yeah, he's saying conventional. I was a bit surprised as well. If it works, I'll post here again this summer when the 13 is behind me (hopefully).

[tobee43]

i just got another mortgage this week. from quicken loans at 2.33% now get this. i wanted to go conventional since the house is paid in full but OH MY the interest rate was just about 6%!!! they called back and said they can only do FHA for low interest rates. i didn't think i could get it since our house never foreclosed and it was an FHA but it's a done deal, so just keep the faith. by the way quicken said no foreclosures showed up on my credit report which one company told me i had three LOL!! just keep looking and best of luck it will happen.

[Scott50]

For a FHA loan- you'll need to wait two years from the CH13 discharge. If the CH13 was a result of a layoff/medical bills, etc.- the wait is one year. Good luck on a conventional loan- majority of banks won't touch you until two years after the CH13 discharge.

[mynameainttracy]

We were finally approved for a VA loan through NFCU almost 2 years post 13 discharge. Just our luck there isn't anything good enough to make an offer on right now. Oh well, guess I will have to extend my lease by another year and start over next spring.

[LadyInTheRed]

We were finally approved for a VA loan through NFCU almost 2 years post 13 discharge. Just our luck there isn't anything good enough to make an offer on right now. Oh well, guess I will have to extend my lease by another year and start over next spring.

Why not sign a month-to-month lease or something shorter than a year so that you can keep looking and make an offer when you find something you like.

[mynameainttracy]

We have a little bit of a unique situation. We live in a college town where house rentals only want to do school year length leases and going somewhere like an apartment complex, that is more semester to semester friendly, is not an option for us because of our dogs. They are allergic to rabies vaccinations and there are no alternative laws or exceptions here for that situation.

We moved here from the Raleigh , NC market where you can get twice the house for half the money and here it is the opposite. It's a bummer.

[bostonit]

I believe the two year requirement on applies to chapter 7 BKs. For chapter 13, the FHA allows it after 12 on time payments to the trustee and with permission of the court.

[Scott50]

I believe the two year requirement on applies to chapter 7 BKs. For chapter 13, the FHA allows it after 12 on time payments to the trustee and with permission of the court.

You "can" qualify for FHA loan if you are in an active CH13 if you make twelve on time payments and meet the credit criteria along with trustee/court permission. If you wait to apply for the loan after you receive your CH13 discharge its a two year wait. They go by discharge date. The key is to apply & recieve loan approval before you receive your discharge. otherwise you'll need to wait two years.

[bostonit]

I don't mean to doubt you on this but are you sure?

[justbroke]

I don't mean to doubt you on this but are you sure?

If you are asking the specifics of the FHA guidelines, the post just above yours, from Scott50, is correct. You must realize, however, that the FHA guideslines are just that... guidelines. The FHA publishes the "minimum" requirements for a loan to meet FHA's "guarantee" provisions. Those are published as guidelines.

Any lender that issues an FHA-insured loan can add additional seasoning requirements, so one lender may allow a person 2 years form a Chapter 7 discharge to obtain a mortgage, while another FHA lender will not.

This is why it's important to SHOP your FHA loans!

[bostonit]

Thanks. I plan to use a mortgage broker so hopefully he can get this shopped around.

[WhattaMess]

I filed in 2008 and was discharged in September 2013. I just got approved through a mortgage broker for a FHA mortgage. They told me that when they submit to the FHA system for approval it either comes up approved, declined, or refer. If it comes up refer, then they have the option to manually underwrite the mortgage, which they did in my case.

I had to meet a few extra criteria to be manually underwritten. The main stipulation was I had to have after closing, 3 months worth of mortgage payments in cash in reserve.

[wendlan]

What is a mortgage broker?