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Member
jenfox
Posts: 14
Registered: ‎06-04-2012

FHA Purchase-Credit Approval Questions

My Husband and I am going to put our house on the Market. We should walk away with a minimum of about $20k. We are looking to purchase a new home no greater than $165k. Our combined income for 2011 was $110k and we do not have any loans other than Mortgage-Vehicle. Here is where it get's tricky. He is currently under a Chatper 13 with only 1 1/2 years left on it, all payments have been on time and we have our Mortgage and Vehicle figured into that so all of our monthly payments besides utilites are included into the payment. We did it this way to make sure we didnt get in trouble. He had a job loss and we had a few outstanding unsecured loans that forced him to file a BK. He is now 4 years on the job, me 3 years on the job. My credit however is lacking. I have a lot of collections but no active tradelines. I have plenty of alternative tradelines with over a 12 month positive history though. I do not have judgements or liens just a lot of medical. What does it look like our chances of getting approved for an FHA purchase are? We will have over 10% down. Thanks!

Frequent Contributor
germaine47
Posts: 305
Registered: ‎07-05-2011

Re: FHA Purchase-Credit Approval Questions

i would take copies of my credit file to a MB and see how well you are doing.  I think that your BK have to be discharged before you can apply for a mortgage.  My minimum had to be a 640 middle score but I think some lenders require a lower score.

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Member
kascls
Posts: 8
Registered: ‎04-13-2011

Re: FHA Purchase-Credit Approval Questions

I think that your BK have to be discharged before you can apply for a mortgage.

 

OK, well, I have no idea about your prospects for approval, but this is most definetly not true.

Regular Contributor
sewmuchdebt
Posts: 162
Registered: ‎05-14-2009

Re: FHA Purchase-Credit Approval Questions

chapter 7 bk wait time and chapter 13 bk wait time are different. i believe you can qualify for home 1 yr after chapter 13.


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Contributor
ProudMomof5
Posts: 81
Registered: ‎11-05-2008

Re: FHA Purchase-Credit Approval Questions

I want to purchase a house this year or early next year.  I was told that I only have to wait one year after filing my Chapter 13 and my score has to be what the lender requires and three tradelines.  Your husband's credit sounds like it would be okay, if his credit score is what it needs to be.  However, you all might not qualify with your  name on the mortgage because of the collections and the fact that you don't have any tradelines.  

Super Contributor
DallasLoanGuy
Posts: 6,096
Registered: ‎07-03-2007

Re: FHA Purchase-Credit Approval Questions


sewmuchdebt wrote:

chapter 7 bk wait time and chapter 13 bk wait time are different. i believe you can qualify for home 1 yr after chapter 13.


 

For FHA loans

Ch. 7  = 2yrs wait time

Ch. 13 = after 1yr of on time payments and permission of trustee.... you can get a loan while still in the ch13 repayment plan.

or 1 day out of ch13 with no permissions.

 




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