Mortgage Lenders with No Waiting After Chapter 13 Bankruptcy

[Anonymous]

Does anyone know of lenders who will do a mortgage loan after chapter 13 bankruptcy? 

Thanks!

[Anonymous]

I believe there are a lot of them.  Search your particular area, or if you have a realtor they could help.

I just closed on my house and I was approved just past a year of discharge of my 13.  I waited because I wanted to bring my score up to get the better rates, save a bit more money etc.  I actually was going to wait 2 years, but bit the bullet early.

[Anonymous]

Thank you! Definitely will do that!  Been searching locally might need to expand some.

[Anonymous]

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@Anonymous wrote:

I believe there are a lot of them.  Search your particular area, or if you have a realtor they could help.

I just closed on my house and I was approved just past a year of discharge of my 13.  I waited because I wanted to bring my score up to get the better rates, save a bit more money etc.  I actually was going to wait 2 years, but bit the bullet early.

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So you don't have to wait 2 years?  Is this 2 year rule because it takes most people that long to build up their score?

[Anonymous]

For conventional, yes, 2 years.  FHA, nope.

[Anonymous]

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@Anonymous wrote:

For conventional, yes, 2 years.  FHA, nope.

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Even if I can put 20% down?  I just don't want to wait 2 years for a conventional loan.

Can I still do a FHA loan with 20% down and not pay any points?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

For conventional, yes, 2 years.  FHA, nope.

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Even if I can put 20% down?  I just don't want to wait 2 years for a conventional loan.

Can I still do a FHA loan with 20% down and not pay any points?

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No.  Conv is 2 years regardless.  You can do FHA then refi to conventional later.  Thats my plan, but I will wait until I can have 20% equity in the house at that time to drop the PMI.

20% down and FHA will allow for MIP to drop off after 11 years instead of entire life of loan.  Points are what you pay to bring a rate down.  Generally 1% loan orig fee is required.  You prob just need to find a mortgage company and talk through options with them.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

For conventional, yes, 2 years.  FHA, nope.

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Even if I can put 20% down?  I just don't want to wait 2 years for a conventional loan.

Can I still do a FHA loan with 20% down and not pay any points?

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No.  Conv is 2 years regardless.  You can do FHA then refi to conventional later.  Thats my plan, but I will wait until I can have 20% equity in the house at that time to drop the PMI.

20% down and FHA will allow for MIP to drop off after 11 years instead of entire life of loan.  Points are what you pay to bring a rate down.  Generally 1% loan orig fee is required.  You prob just need to find a mortgage company and talk through options with them.

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Thanks!  I plan to do that.  I just really don't wnat to have to pay MIP (I need to look this up).  I should find a decent FHA loan calcualtor and see what I am looking at.

I'm just ready to move and it seems I cannot get the type of mortage I would prefer and use my bank instead of someone else.

[Anonymous]

We do. We have no waiting period after a Discharge of a Chapter 13 for any FHA, VA, or USDA or Portfolio Loan Program. Conventional Loans require a 2 year waiting period unless you meet the extenuating circumstance guidelines.

For those in an active Chapter 13, you can apply for either a FHA, VA or USDA Loan providing you have made at least 12 months on time payments to the Trustee. Once we issue you a Pre-Approval and Fee Sheet, you can forward these documents to your Attorney so they can request a Motion to Incur Debt.

Please feel free to reach out to me.

[Anonymous]

FHA with PMI might end up being a better financial option for you than conventional and 20% down, even if you had the choice. If your FICO mortgage score is under 680, the better FHA rate and PMI is usually cheaper.