Mortgage Loans

[sprint100]

Hello all

I filed Ch7 BK that was discharged in April of 2012. My wife and I are moving to Denver within the next 3 months. Since I have heard of FHA mortages being approved before the 2 year mark but not being able to close until the 2 year mark is reached. My question is, if there is a home that has to built and will take 7 or 8 months to complete can we be apply and be approved 5 or 6 months in advance of that 2 year mark?

[tooleman694]

Yes you can do that, you will get a condition that says you can't close till that date.

[StartingOver10]

Be careful here, the underwriter looks at the time period from your BK filing date to your new loan application date.

If you didn't surrender a home in the BK or lose it to f/c than the min period is 2 years. There are rare exceptions for extenuating circumstances that will allow for less than two years.

[MovingForward_2012]

Actually, I am in Denver and the lenders I have worked with here have told me it has to be 2 years from the discharge date not the filing date to prequalify.

OP, there are a ton of new homes being built out here and we are on Contract for a brand new home finished late last year.

Go to www.chfainfo.com to find out about the CHFA homeopeners plus 1st/2nd 30 year fixed mortgages through Colorado's Housing Authority. They will roll your required 3% down and closing costs into a 2nd mortgage! We are going through them for our home loan and have to only come out of pocket $2,500 for a $347,900 home!

Welcome to Denver! :-)

[tooleman694]

The way I understand it, you can still prequalify but you can't actually close till it has been discharged for 2 years.

I have something kind of like this going on, I prequalified but I can't close till April thats when the time is up for the baddie I have.

I got my DU approval, went thru underwriting and approved but my condition was that closing had to be April.

[MovingForward_2012]

+1

[MovingForward_2012]

You're right tooleman now that I remember it correctly. I pre qualified in July but couldn't move forward until the BK 13 was discharged for 2 years. It was deleted off my report in Oct as it hit the 7 year mark in Oct. I didn't know I qualified to close in Oct and found out I was good in Dec, 1 month before the 2 year mark from discharge.

[tooleman694]

Yup yup, so if you plan it right. You could wait it all out as your new home builds.

This is what we are doing.

[JM-AM]

As mentioned earlier it still depends on circumstances.

Not everyone qualifies.

Even when you can try to get the process started in advance it can be limited to 3-6 months.

[sprint100]

Thanks for all the info