FHA Portfolio Lenders

[jojomomma]

I am 4 years post foreclosure.  As I understtand it FHA guidelines require 3 years post foreclosure without extenuating circumstances, less time with extenuating circumstances.  I went to my credit union this morning and the rep there said I won't qualify for any of their products until 7 yrs have passed, even FHA.  I understand the credit union may have overlays, adhering to fannimae guidelines.  So I told him I was surprised it was 7rs, thought it ws 3, asked if it was an overlay requirement of theirs and he said no it was FHA's quidelines.  He said FHA changed things in 08 because people were bailing and walking out on mortgages so they raised the wait time to insure shady people wouldn't be applying again.  I about fell out of my chair.  The only negative I have is this foreclosure, no lates, etc,. Foreclosure started in 09, deed transfered in 9/2010.  FICO scores all in 715-723 range, suspect it will be a bit higher since paid down utilities in past few days.  5 charge cards, only 2 with balances, one for $267 and the other 344. 33k income,  5k in savings, 10k in 457 accnt, wanted to put a contract on $59,900 reo. Only monthly debt is the credit cards, no car payment, student loans or anything.  Do I really have to wait another 3 years to apply for FHA? TIA for any advice.

[TimeToRecover]

Well my foreclosure was offical in june of 2010.  so 4 years now.  I am getting a FHA loan with no issues (at least not so far) and the lender said for them it is 5 years for conventional.  So my plan is when I hit 20% ltv I will be past thier required time after foreclosure and I will refinance conventional to remove the pmi.  (asuming interest rates haven't sored making it not worth it.

So my experience with my lender is that FHA is NOT 7 years.  I would talk to other lender or even a different LO.  I would look for a good mortgage banker.

[StartingOver10]

TimetoRecover is right.

Your credit union sounds very conservative.

You can easily get a FHA mortgage 3 years from the date the deed was transferred back to the bank.  There is no 7 year requirement for an FHA loan. There is one for a some of the conventional home loan mortgages.

Look for a good mortgage banker. If you don't know where to find one, ask your Realtor or friends and family or pm me and I will give you a couple of resources.

The rest of your file looks great You really shouldn't have any issues at all based on your post.

[jojomomma]

Thanks TimetoRecover and StartingOver for responding so quickly!  I am convinced this rep I talked to in the credit union really has no clue.  Their main office is located in another town, all thier home loan officers work out of that office. I tried to be as informed as possible via these boards and researching.  I waited till I was in the best possible shape financially before I felt I was ready to dive back into home ownership.  I wasn't excited about FHA and the PMI but thought it would be better to lock down a place now before they get out of my price range and then refi  with conventional once foreclosure drops off. This mornings experience kinda took the wind out of my sails!  I've been with this credit union for almost 20 yrs now, even have positive tradelines with them, including 2 diferent home loans, the most recent paid off early in 2006.  I walked out of there, clutching my papers, head down, feeling very defeated and embarrassed.

[StartingOver10]

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@jojomomma wrote:

Thanks TimetoRecover and StartingOver for responding so quickly!  I am convinced this rep I talked to in the credit union really has no clue.  Their main office is located in another town, all thier home loan officers work out of that office. I tried to be as informed as possible via these boards and researching.  I waited till I was in the best possible shape financially before I felt I was ready to dive back into home ownership.  I wasn't excited about FHA and the PMI but thought it would be better to lock down a place now before they get out of my price range and then refi  with conventional once foreclosure drops off. This mornings experience kinda took the wind out of my sails!  I've been with this credit union for almost 20 yrs now, even have positive tradelines with them, including 2 diferent home loans, the most recent paid off early in 2006.  I walked out of there, clutching my papers, head down, feeling very defeated and embarrassed.

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No way you should be embarrassed.  I don't know your credit union, but I would bet five bucks that the person you spoke with is uninformed. It could be possible that the CU is really that conservative, but I am more inclined to believe the rep didn't bother to look up the difference in the loan types (FHA vs conventional).

In any event, any number of lenders would lend to you so it is their loss

[ezdriver]

To the best of my recollection, Credit Unions do not offer FHA mortgages. I recently financed a home purchase with an FHA mortgage just one year post bankruptcy and four years post foreclosure. While I was shopping for a mortgage, I visited three credit unions and all three told me that they do not offer FHA mortgages. Sounds to me like that "LO" at the credit union did not know what they were talking about.