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New FHA Loan - After Chapter 13 Discharge...

Valued Contributor

Re: New FHA Loan - After Chapter 13 Discharge...

It is not a universal yes that right after Ch 13 discharge you can get a mortgage. The only reason I qualified before January 2013 is because the 13 was deleted off my credit report Oct 2012...2 months before the 2 year mark after discharge.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 11 of 18
Super Contributor

Re: New FHA Loan - After Chapter 13 Discharge...


MovingForward_2012 wrote:
Trust me I did. I also think it depends on the state you are in as well.

 

shane the mortgage man lends in all 50 states. i will send him an email link to this thread. i never heard of such, that different states have different guisdelines on this.

 

Retired Lender
Message 12 of 18
Super Contributor

Re: New FHA Loan - After Chapter 13 Discharge...


MovingForward_2012 wrote:
It is not a universal yes that right after Ch 13 discharge you can get a mortgage. The only reason I qualified before January 2013 is because the 13 was deleted off my credit report Oct 2012...2 months before the 2 year mark after discharge.

 

no. if you have lates after ch13 then it is not an automatic yes.

or if you have no credit left and cannot show on time rent and utilities for alternate credit, then it isnt an automatic yes.

 

but on the other hand.... 850 credit score and $100K income to buy a $50K condo is not an automatic yes either.

 

bottom line: it plainly states in the guidelines for fha.... 'no waiting'. if the op here gets turned down, then they need to seek another lender that doesnt have that lender guideline overlay.

 

 

 

i dont know why the deletion of a record made a difference to your lender.... it shouldnt. thats weird

Retired Lender
Message 13 of 18
Valued Contributor

Re: New FHA Loan - After Chapter 13 Discharge...

A Broker I went to ran my credit and I had a high fico of 754 and the mid was in the 730's. he sent my file to the UW to test the waters and it came back declined for the sole reason BK not discharged for 2 years. I still have the denial paperwork that also shows the scores. My Chapter 7 is old...discharged in 2003 so that wasn't a factor.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 14 of 18
Super Contributor

Re: New FHA Loan - After Chapter 13 Discharge...

it wouldnt be the first time an underwriter blew it on a loan guideline.

 

i actually had the head underwriter get with corporate and re-write a loan guideline a couple of years ago because they were written wrong.

 

denial got turned into approval.

 

your story is a classic case of why persistence is important. call 10 lenders and ask one question...... you are liable to get several answers.

 

Retired Lender
Message 15 of 18
Valued Contributor

Re: New FHA Loan - After Chapter 13 Discharge...


DallasLoanGuy wrote:

it wouldnt be the first time an underwriter blew it on a loan guideline.

 

i actually had the head underwriter get with corporate and re-write a loan guideline a couple of years ago because they were written wrong.

 

denial got turned into approval.

 

your story is a classic case of why persistence is important. call 10 lenders and ask one question...... you are liable to get several answers.

 


That is possible.  The good news is that the waiting period worked in my favor as I learned that my landlord was plotting to rip me off.  So the waiting period gave time for that to come to light and for me to find another house. :-)

Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 16 of 18
New Member

Re: New FHA Loan - After Chapter 13 Discharge...

Okay, well here is an update on my situation:

My Chapter 13 Bankruptcy was discharged on 28 November 2012.

I'm a first time buyer, $74,800 income (15 years of federal service), completing a five-year (2008) auto loan with 4 payments left (no lates ever).

I have  two newly re-established tradelines (1 Navy FCU Visa @ $500.00 & 1 Capital One MC @ $500.00). Both cards are being paid in full monthly.

My credit scores are 642-658.

I have $25,000 for a down payment.

I'd like to start looking to buy as soon as my car is paid off, but, I can wait until December so that at least 1 year will have passed since discharge.

 

Do you know anyone who will work with these parameters to underwrite a loan in Maryland?

Message 17 of 18
New Visitor

Re: New FHA Loan - After Chapter 13 Discharge...

How did you get your ch 13 removed from your credit report in only 2 yrs?

Message 18 of 18