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My CH13 was discharged April 2016, but the banks I've reached-out to seem to require a period of two to four years after discharge to apply for a new jumbo mortgage. Are there mortgage lenders that will orginate mortgages sooner? If so, please let me know which lenders to contact.
I'm moving your post to the mortgage section. Ch 13 rules are different from Ch 7 for obtaining a mortgage. You can get one even during a Ch 13. The issue I don't know is if the fact that you are seeking a jumbo mortgage changes the timelines.
@StartingOver10 wrote:I'm moving your post to the mortgage section. Ch 13 rules are different from Ch 7 for obtaining a mortgage. You can get one even during a Ch 13. The issue I don't know is if the fact that you are seeking a jumbo mortgage changes the timelines.
+1
Jumbos are by definition portfolio loans, and if S10 hasn't seen an answer to this question on explicit lenders (and that sort of stuff changes with time anyway) I don't know if it's been asked at all.
You'll need to just keep talking to lenders to find one that will play ball with you as there's absolutely no standardization other than some coherence on rates between the big boys.
@startingout wrote:My CH13 was discharged April 2016, but the banks I've reached-out to seem to require a period of two to four years after discharge to apply for a new jumbo mortgage. Are there mortgage lenders that will orginate mortgages sooner? If so, please let me know which lenders to contact.
Hi Startingout,
Most true jumbo programs have even longer waiting periods after bankruptcies & foreclosure so we need to clarify whether or not you need a true jumbo or if you're looking for what's called an agency jumbo.
The conforming loan limit in most areas is $424,100. If you go over that amount it's considered a true jumbo. In the high costs counties, the loan limits can range anywhere from $431,000 - $721,000 & over 1.2 million for a 4 plex. If your loan amount is over $424,100 but under the county limit in these areas, you're looking at a conforming jumbo.
For example: In Los Angeles County CA, the FHA loan limit is $636,150. In this case you're looking at the same FHA guidelines as someone buying a home for $250,000. Unfortunately a lot of loan officers either don't pay attention to the underwriting guidelines or they work for institutions that have their own overlays. Here's what I mean. FHA will allow someone 12 months into a chapter 13 bankruptcy to qualify for an FHA mortgage but their guidelines for someone that's been discharged is 2 years? That doesn't make sense, right? Well it's not true. The FHA guidelines actually say IF a person has been discharged less than 2 years from a chapter 13 BK, the underwriter is to down grade the file to a manual underwrite. That's it. That doesn't mean you're not eligible for 2 years.
So with all of this in mind, what area are you looking to buy in & what is your purchase price?
Thank you Moderators and VALoanMaster for your responses.
This would be a true jumbo at a purchase price of around $2,000,000 for 2-units. The FHA loan limits covering 2-4 units in our area are higher than average, but not high enough.
Even though it would be a “Portfolio Loan”, the feedback from lenders seems to be pretty standard. Multiple banks and mortgage companies refer to investor guidelines requiring a 2-5 year waiting period after CH13 Discharge based on internal guidelines.