FHA Loan Requirements

Anonymous · ‎06-09-2009

We filed CH. 7 BK in June, 2007, discharged Sept. 2007. We included home to be surrendered in BK because we had to move out-of-state for a job. No foreclosure is anywhere on credit reports. We were told we had to wait 2 years from discharge before qualifying for an FHA loan. We recently looked at brand new homes being offered by D.R. Horton, we were told that we would qualify, and could close after Sept. 2009. They ran out credit, scores between 630-660. No late payments and no foreclosure on credit report. D.R. Horton asked what we did with house, we told them it was included in the BK. At that point, I was treated like scum, called a low life, and told that no one would ever give us an FHA loan.

What are the guidelines, and does FHA monitor their list of authorized lenders?

granny031350 · ‎06-09-2009

because you surrendered the home in the BK, it is a foreclosure (just not on your credit report) and the FHA requirement is 3 years from the foreclosure date. So in 2010 this wouldnt be an issue for you. As a Bk person I understand your frustration at being humiliated. However just remember that you made a business decision that was best for your family at the time and move on. Those who have never filed have no clue what it is like to do so and just do not understand the emotional issues involved. You might have to wait another year to get your home. Or you could talk to another LO. Be upfront with them but if it isnt on your credit report, you might be ok. I was discharged from my Chapter 13 on March 3 and applied on March 4 this year and closed May 8th. (Chapter 13 requires no waiting period as does Chapter 7) and my LO told me what is on the credit report is what is important. GL

Anonymous · ‎06-09-2009

Ditto to what Granny said.

Personally, I'd not be above telling ALL of your friends, associates, co-workers, acquaintances, strangers on the street (you get the picture) how shabbily you were treated. The average person with half a brain cell knows that filing BK ain't easy - neither is losing your home to foreclosure.

So while there will be some utter, complete, undeniable a$$holes that will treat you like dirt because of it, it ain't the average person's reaction. And those a$$holes that *do* treat you badly, well, they'd prolly push their mama under a bus at rush hour for $1K in life insurance and her collection of Precious Moments figurines. :/

AKA, they don't matter. They're jerks.

Meanwhile, if you have a need to, think about Karma and how that'll be spanking those jerks sometime soon. And while you're at it, get your patootie in gear and (like Granny said) start calling LOs.

Best of luck to you ... and big ol' hugs!!!!

Anonymous · ‎06-09-2009

Thanks for all your info. You know, you are right - there are many that don't know what its like to have to file BK. We were okay until my husband lost his job, which is why we moved out-of-state. If we had stayed, we would have lost the house anyway. To everyone who has filed BK, just remember, we are not garbage. In a few years, we will have the option of refusing our business to the companies that have treated us badly.

Anonymous · ‎06-09-2009

I too filed in Nov 2001. I decided to let it be dismissed because most of my debt was unsecured, neverless, it was still a tough decision and I've been turned down many times for credit and even apartments for the bk. I've since rebuilt and will be buying a home (hopefully I can close next month). The same people who turned me down, send me preapprovals in the mail. HA!

Just focus on rebuilding. Save as much money as you can, and learn from your mistakes. Time will fly, and then it'll be off your credit. You made the best decision for you and your family, that's more than anyone can ask of you.

Just a thought, we've even had a president with bad credit. So it can happen to anyone.

Anonymous · ‎06-09-2009

Chelsea,

What city was this in? We, too, were looking at DR Horton. Actually, we're renting in a DR Horton neighborhood right now in North Carolina, but the owner has to sell. The loan officer we spoke to was pretty nice to talk to, although we won't be ready until March of 2010.

Anonymous · ‎06-09-2009

JoelInNC:

This was in Las Vegas, NV, a brand new D.R. Horton gated community. Of course, the sales staff were extremely cordial, it wasn't until we talked to the financing dept, then their true colors came out. It's okay, because we knew several other people that had also intended to take a look at their homes, but after we told people the way we were treated, they are not interested and have continued to tell other people. I guess its true, what goes around, comes around.

homewardbound · ‎06-11-2009

Hang in there! My CH 7 BK was discharged in June of 2007 and I have had to wait 2 yrs to qualify for an FHA loan. I am finally able to qualify and am closing on my home next month. I didn't own a home previously so can qualify after 2 yrs. It is a LONG wait, but look at it this way, it is worth the wait, keep boosting your credit and saving cash and next year will come before you know it! Best of luck to you.

Anonymous · ‎06-11-2009

Thanks for the support, we will just hang in there because we know we will get there eventually. Also, congratulations on getting your home. I wish you the best of luck, its so good to see something good happen.

Desert-Rat · ‎06-12-2009

chelsea1,

Bad things happen to good people! Keep your chin up!

If I understand correctly, you were trying to finance through the builder. Is that mandatory? Perhaps you can get financing through another lender?

Just wondering,

D-R

Edited to add:

On second thought and after doing a google search on "DR Horton, LV, NV, complaints," I think you hit the jackpot! This outfit has lots of derogatory stuff on consumer affairs web site, plus many other sites. Check it out yourself. Good luck to you.

Message Edited by Desert-Rat on 06-12-2009 09:29 PM