Home loan purchaee

[jancheta]

im on a chapter 13 close to 2 years now. can i purchase a home while on C13? how long do i have to wait ?

[justbroke]

Technically, a Chapter 13 debtor can purchase a home under the FHA program after making 12-consecutive on-time payments. Needs court and Trustee approval. FHA limits are the limiting factor and go from about $430K to just over $1.0M in certain parts of California, Hawaii, and other high-cost areas.

There are other factors as well. The most difficult is finding a lender that will do an FHA loan via manual underwriting since the HUD guidelines require the loan be downgraded to manual underwriting even if it comes back as Approve/Eligible. You may be able to find someone on this forum that has had a manually underwritten FHA loan for a Chapter 13 debtor. You can generally forget any major banks since they love automated and desktop underwriting (less chance for errors/risk). I think I kept getting things from Republic Bank and Peoples Bank while I was in my Chapter 13. (If you are VA as well, you may have other options.)

Simply put, it's going to take leg work and a lot of patience from the seller.

[jancheta]

Thank you for the reply/comment.