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Established Member
Posts: 12
Registered: ‎11-28-2007
0

New Home mortgage after BK

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?

 

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
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Re: New Home mortgage after BK

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

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Super Contributor
Posts: 6,657
Registered: ‎03-06-2010
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Re: New Home mortgage after BK

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.

 

 

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
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Re: New Home mortgage after BK

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! :-)
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Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
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Re: New Home mortgage after BK

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.

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
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Re: New Home mortgage after BK

+1
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
Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
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Re: New Home mortgage after BK

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.
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
Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: New Home mortgage after BK

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.

Valued Contributor
Posts: 3,302
Registered: ‎06-09-2010
0

Re: New Home mortgage after BK

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.
Good Luck
May all your dreams and wishes become a reality!
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Established Member
Posts: 12
Registered: ‎11-28-2007
0

Re: New Home mortgage after BK

Thanks for all the infoSmiley Happy

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