Refinancing a 1st and 2nd after Chapt 13 discharge?

[Anonymous]

We have a 1st mortgage with a 6.25% rate and a 2nd with a 9.75% rate.
We would like to refinance to get our payment much lower. How in the world do we do this?
I'm guessing would have to be through FHA since we just discharged in March of this year. And I've read that if I refinance through FHA it would be considered a "cash out" refinance to pay off the second. Anyone have any info on this or another way we could do this?

Also, since discharge in March, my husband and I both have acquired Capital One cards. I got the Quicksilver Cash Rewards, 5k and he got the Platinum 1k.
My scores are 681, 651, 648. His is 660 (Exp, I think, through Cap One)
I have the MyFico monthly monitoring but haven't signed up my hubby yet because we were unable to pull his credit until he got the card (no credit to report apparently?) and then the monthly went away! I would have to pay the same for quarterly monitoring...grrr. Anyone have a way to still get the monthly?

Lastly, we need to purchase a car, maybe 2. Everything we own is paid for right now and I don't really want a car payment (ever again!) but it seems having that type of loan may help our scores.

One loan would be around 5k and the other up to 10k. However, once we sold the other, older vehicles we own, we'd probably pay some of that off to shorten the term.
Does this sound like a good plan to help continue to build credit?

Thank you!!

[Anonymous]

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@Anonymous wrote:

We have a 1st mortgage with a 6.25% rate and a 2nd with a 9.75% rate.
We would like to refinance to get our payment much lower. How in the world do we do this?
I'm guessing would have to be through FHA since we just discharged in March of this year. And I've read that if I refinance through FHA it would be considered a "cash out" refinance to pay off the second. Anyone have any info on this or another way we could do this?

Also, since discharge in March, my husband and I both have acquired Capital One cards. I got the Quicksilver Cash Rewards, 5k and he got the Platinum 1k.
My scores are 681, 651, 648. His is 660 (Exp, I think, through Cap One)
I have the MyFico monthly monitoring but haven't signed up my hubby yet because we were unable to pull his credit until he got the card (no credit to report apparently?) and then the monthly went away! I would have to pay the same for quarterly monitoring...grrr. Anyone have a way to still get the monthly?

Lastly, we need to purchase a car, maybe 2. Everything we own is paid for right now and I don't really want a car payment (ever again!) but it seems having that type of loan may help our scores.

One loan would be around 5k and the other up to 10k. However, once we sold the other, older vehicles we own, we'd probably pay some of that off to shorten the term.
Does this sound like a good plan to help continue to build credit?

Thank you!!

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No need to go into vehicle debt. You can satisfy the installment mix of credit for your scores with shared secured loans. You can find lots of info about them on these boards

[StartingOver10]

I will pm you two resources for mortgage lenders that do conventional loans for those with a Bk.  The time periods are different if you filed a Ch 13. They can actually refi you during the 13. I don't know if that time period changes if you have received your discharge. 

You do need to show that you have been making your current mortgage payments on time. Usully that means you need to show cancelled checks or your bank statements showing the electronic payment.

The scores you are quoting from Capital One are not the scores that are used for mortgages at all.  You need the 3 B report. Look under the section labeled 'used for mortgages'. The mortgage lender uses the mid score - the lowest mid score of the applicants on the mortgage. The FICO mortgage scores are completely different than the Capital One scores - not at all the same. 

Look at the mortgage subforum for additional details. 

I don't think you are going to be considered 'cash out' refi because you are paying off the first and second mortgage unless you get more than those pay off amounts in your new financing.  The mortgage loan officer will be able to answer that question for you.

[Anonymous]

SteelerNYC, Thanks! We may have to get a small loan for the remainder of what we'll owe for a new car (minus the cash we put down). It will be probably 5k max. This will help us with the installment type credit, correct?
And no way, won't be going in debt over car loans/payments again! Too old for that!!

[Anonymous]

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@StartingOver10 wrote:

I will pm you two resources for mortgage lenders that do conventional loans for those with a Bk.  The time periods are different if you filed a Ch 13. They can actually refi you during the 13. I don't know if that time period changes if you have received your discharge. 

You do need to show that you have been making your current mortgage payments on time. Usully that means you need to show cancelled checks or your bank statements showing the electronic payment.

The scores you are quoting from Capital One are not the scores that are used for mortgages at all.  You need the 3 B report. Look under the section labeled 'used for mortgages'. The mortgage lender uses the mid score - the lowest mid score of the applicants on the mortgage. The FICO mortgage scores are completely different than the Capital One scores - not at all the same. 

Look at the mortgage subforum for additional details. 

I don't think you are going to be considered 'cash out' refi because you are paying off the first and second mortgage unless you get more than those pay off amounts in your new financing.  The mortgage loan officer will be able to answer that question for you.

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My scores are from my MyFico subscription. For mortage lending (score 2) it says I am 715. Score 8, most commonly used is 648.

My husband is 660 and yes, is Fako type. He hasn't enrolled because I was hoping to get him on the monthly but it's no longer available.
Are there any other monitoring services that provide monthly access that are reliable?

Thanks, I'll look for the info you pm me on lenders! Thank you!

[Anonymous]

---

@StartingOver10 wrote:

I will pm you two resources for mortgage lenders that do conventional loans for those with a Bk.  The time periods are different if you filed a Ch 13. They can actually refi you during the 13. I don't know if that time period changes if you have received your discharge. 

You do need to show that you have been making your current mortgage payments on time. Usully that means you need to show cancelled checks or your bank statements showing the electronic payment.

The scores you are quoting from Capital One are not the scores that are used for mortgages at all.  You need the 3 B report. Look under the section labeled 'used for mortgages'. The mortgage lender uses the mid score - the lowest mid score of the applicants on the mortgage. The FICO mortgage scores are completely different than the Capital One scores - not at all the same. 

Look at the mortgage subforum for additional details. 

I don't think you are going to be considered 'cash out' refi because you are paying off the first and second mortgage unless you get more than those pay off amounts in your new financing.  The mortgage loan officer will be able to answer that question for you.

---

From my understanding you cannot get a conventional loan for 2 years after a Chapter 13 discharge.

[Anonymous]

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@Anonymous wrote:

We have a 1st mortgage with a 6.25% rate and a 2nd with a 9.75% rate.
We would like to refinance to get our payment much lower. How in the world do we do this?
I'm guessing would have to be through FHA since we just discharged in March of this year. And I've read that if I refinance through FHA it would be considered a "cash out" refinance to pay off the second. Anyone have any info on this or another way we could do this?

Also, since discharge in March, my husband and I both have acquired Capital One cards. I got the Quicksilver Cash Rewards, 5k and he got the Platinum 1k.
My scores are 681, 651, 648. His is 660 (Exp, I think, through Cap One)
I have the MyFico monthly monitoring but haven't signed up my hubby yet because we were unable to pull his credit until he got the card (no credit to report apparently?) and then the monthly went away! I would have to pay the same for quarterly monitoring...grrr. Anyone have a way to still get the monthly?

Lastly, we need to purchase a car, maybe 2. Everything we own is paid for right now and I don't really want a car payment (ever again!) but it seems having that type of loan may help our scores.

One loan would be around 5k and the other up to 10k. However, once we sold the other, older vehicles we own, we'd probably pay some of that off to shorten the term.
Does this sound like a good plan to help continue to build credit?

Thank you!!

---

Just so you know the FICO 8 score will report anytime there is a change to your report.  By antyime I don't mean anything.  There  are certain things that trigger a score update.  The other FICO scores only update quarterly.

I too wish I had signed up when it was the montlhy version.  It doesn't seem to be available anymore.

I was fortunate enough that my second mortgage was stripped in my Chapter 13 so all I have left is my first.

[Anonymous]

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@Anonymous wrote:

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@StartingOver10 wrote:

I will pm you two resources for mortgage lenders that do conventional loans for those with a Bk.  The time periods are different if you filed a Ch 13. They can actually refi you during the 13. I don't know if that time period changes if you have received your discharge. 

You do need to show that you have been making your current mortgage payments on time. Usully that means you need to show cancelled checks or your bank statements showing the electronic payment.

The scores you are quoting from Capital One are not the scores that are used for mortgages at all.  You need the 3 B report. Look under the section labeled 'used for mortgages'. The mortgage lender uses the mid score - the lowest mid score of the applicants on the mortgage. The FICO mortgage scores are completely different than the Capital One scores - not at all the same. 

Look at the mortgage subforum for additional details. 

I don't think you are going to be considered 'cash out' refi because you are paying off the first and second mortgage unless you get more than those pay off amounts in your new financing.  The mortgage loan officer will be able to answer that question for you.

---

My scores are from my MyFico subscription. For mortage lending (score 2) it says I am 715. Score 8, most commonly used is 648.

My husband is 660 and yes, is Fako type. He hasn't enrolled because I was hoping to get him on the monthly but it's no longer available.
Are there any other monitoring services that provide monthly access that are reliable?

Thanks, I'll look for the info you pm me on lenders! Thank you!

---

I believe https://www.creditchecktotal.com/ does monthly but it doesn't provide all the other scores that MyFico offers just the FICO 8 score.

There are some free sites that you can get your FICO score from.

[StartingOver10]

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@Anonymous wrote:

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@StartingOver10 wrote:

I will pm you two resources for mortgage lenders that do conventional loans for those with a Bk.  The time periods are different if you filed a Ch 13. They can actually refi you during the 13. I don't know if that time period changes if you have received your discharge. 

You do need to show that you have been making your current mortgage payments on time. Usully that means you need to show cancelled checks or your bank statements showing the electronic payment.

The scores you are quoting from Capital One are not the scores that are used for mortgages at all.  You need the 3 B report. Look under the section labeled 'used for mortgages'. The mortgage lender uses the mid score - the lowest mid score of the applicants on the mortgage. The FICO mortgage scores are completely different than the Capital One scores - not at all the same. 

Look at the mortgage subforum for additional details. 

I don't think you are going to be considered 'cash out' refi because you are paying off the first and second mortgage unless you get more than those pay off amounts in your new financing.  The mortgage loan officer will be able to answer that question for you.

---

From my understanding you cannot get a conventional loan for 2 years after a Chapter 13 discharge.

---

^^No. That is Ch 7.  

[Anonymous]

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@StartingOver10 wrote:

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@Anonymous wrote:

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@StartingOver10 wrote:

I will pm you two resources for mortgage lenders that do conventional loans for those with a Bk.  The time periods are different if you filed a Ch 13. They can actually refi you during the 13. I don't know if that time period changes if you have received your discharge. 

You do need to show that you have been making your current mortgage payments on time. Usully that means you need to show cancelled checks or your bank statements showing the electronic payment.

The scores you are quoting from Capital One are not the scores that are used for mortgages at all.  You need the 3 B report. Look under the section labeled 'used for mortgages'. The mortgage lender uses the mid score - the lowest mid score of the applicants on the mortgage. The FICO mortgage scores are completely different than the Capital One scores - not at all the same. 

Look at the mortgage subforum for additional details. 

I don't think you are going to be considered 'cash out' refi because you are paying off the first and second mortgage unless you get more than those pay off amounts in your new financing.  The mortgage loan officer will be able to answer that question for you.

---

From my understanding you cannot get a conventional loan for 2 years after a Chapter 13 discharge.

---

^^No. That is Ch 7.  

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Everything I am finding online says you have to wait 2 years to get a conventional loan

http://www.nolo.com/legal-encyclopedia/when-can-i-mortgage-after-bankruptcy.html

https://gustancho.com/conventional-loan-after-chapter-13-bankruptcy