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Post CH13 discharge - Planning for mortgage 2018....

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Post CH13 discharge - Planning for mortgage 2018....

 

Hi All, 

 

Few quick questions about mortgage options post ch 13 discharge... we received our discharge Jun 6,2017.  We are already establishing new credit (1 secured, 1 unsecured and a car loan).  Scores have already improved from 578 to 648 in 30 days.  Hope to have scores at 680 by next spring when we go to qualify.

 

We currently have a VA loan tied up in a house in Virginia which we live in, but we also rent in Charlotte due to work situation and we would like to buy a home here using FHA next year.  The home is Charlotte will become our primary residence for the most part with the exceptions of weekends we will go back to our other home. We are looking at a 5/1 ARM since we may only be in Charlotte for 5 years.

 

QUESTION 1. The FHA DTI is 31% for the housing portion and 43% for total DTI.  Does anyone know if they will include both house payments in the 31% DTI... or will the other house payment (VA) go in to the 43% DTI number?  

 

QUESTION 2.  Can anyone recommend an FHA lender that works better (no ovelays) than others... Not all of the lenders will work with the ch 13 until 2 yrs post discharge. But HUD guidelines say there's no waiting period required... guess it depends on the lender.

 

QUESTION 3.  FHA closing costs seem to be directly related to credit score... 680 + only 1-2% closing costs? Does this sound right?   Down payment separate.

 

Thanks!

1 REPLY
Contributor

Re: Post CH13 discharge - Planning for mortgage 2018....


StartFresh wrote:

 

Hi All, 

 

Few quick questions about mortgage options post ch 13 discharge... we received our discharge Jun 6,2017.  We are already establishing new credit (1 secured, 1 unsecured and a car loan).  Scores have already improved from 578 to 648 in 30 days.  Hope to have scores at 680 by next spring when we go to qualify.

 

We currently have a VA loan tied up in a house in Virginia which we live in, but we also rent in Charlotte due to work situation and we would like to buy a home here using FHA next year.  The home is Charlotte will become our primary residence for the most part with the exceptions of weekends we will go back to our other home. We are looking at a 5/1 ARM since we may only be in Charlotte for 5 years.

 

QUESTION 1. The FHA DTI is 31% for the housing portion and 43% for total DTI.  Does anyone know if they will include both house payments in the 31% DTI... or will the other house payment (VA) go in to the 43% DTI number?  

 

QUESTION 2.  Can anyone recommend an FHA lender that works better (no ovelays) than others... Not all of the lenders will work with the ch 13 until 2 yrs post discharge. But HUD guidelines say there's no waiting period required... guess it depends on the lender.

 

QUESTION 3.  FHA closing costs seem to be directly related to credit score... 680 + only 1-2% closing costs? Does this sound right?   Down payment separate.

 

Thanks!


These are all good questions which I was about to ask (not all of them pertain to me, I just have one house currently).  I still would like to know some of the answers though.



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