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Contributor
Posts: 92
Registered: ‎09-19-2012
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Mortgage afer chapter 13 BK

Is there anyone on this board that has info as to whether its possible to get a mortgage after chapter 13 BK. I've been in plan for 64 months and getting ready to get discharged. I have established credit since BK with credit cards (small limit with balances of less than 10%). Ive been told that I'd have to wait 2 years after chapt 13 is discharged. would appreciate any info


Starting Score: TU 614 EX584
Current Score: TU 650/EX 650 (Walmart)
Goal Score: 710


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Established Member
Posts: 20
Registered: ‎04-30-2013
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Re: Mortgage afer chapter 13 BK

You would need to wait 2 years to get an automated approval, but you can get a loan right now from a lender who manually underwrites FHA loans.  Some will do it with a 620 score, most will want a 640 middle score though.  As long as you have no lates since you started the Chapter 13 (and they may ask to see your Chapter 13 payment history), and your debt ratios are in line, you should be good to go.

Contributor
Posts: 85
Registered: ‎09-26-2012
0

Re: Mortgage afer chapter 13 BK

What type of loan are you going to apply for? I am in the process of closing on my loan next week. I applied right before my discharge was completed. However, with a CH 13 you are good to apply at anytime after 12 months of payments. You might have to search around where ever you are though. i'm in KY and it was no issue here. Also I was informed I only needed 12 months of payments which is all that was requested for me. You want to make sure that your DTI is good in accordance to what type of loan you want. I was told by my LO here that with a VA loan mid score needed was a 600, FHA mid score needed is 620. Hope this helps
Goal Score: 700 Across the Board











Member
Posts: 5
Registered: ‎05-04-2013
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Re: Mortgage afer chapter 13 BK

Mzware, I am in a similar situation.  I, too, am waiting for my chapter 13 discharge and am hoping to get a VA loan.  My midscore is 608 and I have been turned down by quicken loans for a mortgage.  You mentioned that it is possible to get a VA loan with a midscore of 600.  I live in Texas and was wondering if you are anyone else can recommend a lender that could help.

Contributor
Posts: 85
Registered: ‎09-26-2012
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Re: Mortgage afer chapter 13 BK

I heard quicken loans and veteransunited are not the way to go. My recommendation is to call around and explain your situation and go from there. I myself did a little research and saw which companies had overlay requirements and therefore I disregarded them altogether. Overlay requirements are those that are imposed on top of VA guidleines. Good luck!
Goal Score: 700 Across the Board











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