topic Re: FHA Loan after Chapter 13 in Bankruptcy

FHA Loan after Chapter 13

Anonymous — Tue, 27 Apr 2010 03:01:28 GMT

I filed Ch. 13 in 2005 and I was discharged in October of 2008. When will I be able to get a first time home buyer FHA Loan? (There wasn't a home involved in the BK). I'm being told 3 years by a friend that is an LO. However, everywhere I can find online shows 2 years, including the FHA website itself. Will this vary from lender to lender? Does anyone have any recommendations on who I should talk to when my 2 years has passed?

Re: FHA Loan after Chapter 13

Anonymous — Tue, 27 Apr 2010 04:14:19 GMT

Hi Bosrich,

Congrats on getting through your CH 13 successfully!

We thought we'd have to go FHA after CH 13 discharge. We were surprised to be approved for conventional (refi) six months after discharge.

Make some phone calls and find a mortgage lender that works with both conventional and FHA - they will be able to help you determine which will suit you better and what the appropriate timelines are.

And, of course, pull your reports and scores so you know where you stand.

Re: FHA Loan after Chapter 13

Anonymous — Tue, 22 Jun 2010 16:59:29 GMT

In fact, FHA requires NO waiting period following Chapter 13 -- the 2-year proviso applies to Chapter 7 filers -- and might, with trustee permission, guarantee loans to filers with more than a year in a bankruptcy plan:

http://www.fha.com/credit_issues.cfm

I closed a little over a year ago, for example, an FHA mortgage 55 days after discharge.

Most conventional lenders DO, indeed, require a 3-year wait, and regardless of which loan program ones uses, the borrower, of course, must meet the applicable credit standards.

It's very important for a post-bankruptcy applicant to find and use a mortgage broker or loan officer experienced in servicing such applicants. Many, even in the banking and housing industries, don't know the rules for BK filers, and many filers don't know where to look for lenders amenable to loaning to post-BK borrowers.

Re: FHA Loan after Chapter 13

Anonymous — Wed, 28 Apr 2010 20:03:12 GMT

Most conventional lenders DO, indeed, require a 3-year wait, and regardless of which loan program ones uses, the borrow, of course, must meet the applicable credit standards.
That must be 3 years post filing, not discharge. Because Ch 13's require a 3-5 year payment plan, once discharged you should be able to find lenders that will take you on. Our mortgage broker didn't specialize in post-BK, and we were approved through the computer system without a manual review. Our broker was pretty dang surprised. So were we!

OP, how are you doing with meeting those applicable standards i.e. FICO scores?

IME, I would stay away from brokers that advertise that they specialize in post-BK. But your experience may be very different.

Re: FHA Loan after Chapter 13

Anonymous — Thu, 29 Apr 2010 00:22:28 GMT

My eligibility is ok. I definitely meet any income requirements. My wife's scores are low 700's and my Experian and Equifax are in the 690's. My TU is in the low 600's because my Sallie Mae loan keeps showing up as a new derogatory every 30 days for some reason. I can't seem to get someone to work with me on that one. My only credit since discharge is a car loan, a secured card, and my Sallie Mae student loan that has started up with payments again. I'm hoping to start looking for a mortgage this time next year when I'll have time to get into the 700's and get my annual bonus for a downpayment. On a side note, I work for a financial services company that is a big lender. I'm hoping they will be willing to work with me. Thanks for the help, any other advice you have would be much appreciated.

Re: FHA Loan after Chapter 13

rwhite59 — Sat, 01 May 2010 19:48:07 GMT

We were discharged from BK13 on September 8, 2009. We closed on our house using a 100% financing (VA loan) on September 14, 2009. We were actually approved before we were discharged. Once discharged as soon as we received the discharge papers we proceeded with the closing.

Re: FHA Loan after Chapter 13

Anonymous — Mon, 21 Jun 2010 17:33:01 GMT

Currently shopping for FHA loans in last month of Chapter 13. Most banks are looking for a mid FICO of at least 620. With 700's, you should be fine. Many loan officers do not understand the difference between Ch. 13 and Ch. 7, or even FHA guidelines. Find a knowledgeable mortgage broker, and good luck.

Re: FHA Loan after Chapter 13

Anonymous — Tue, 22 Jun 2010 14:37:43 GMT

It must depend on the lender. My Chapter 13 was discharged in May 2009. I sent WellsFargo $45,000 and paid off my home in May 2010. In June I applied to get a preapproval to get another home, with VA as the guarantee. You would think having just paid off my home with them would make it pretty easy right? WRONG. I was denied due to my bankruptcy. I was told I had to wait 2 years post discharge. I didn't feel like arguing, and I decided I would just wait until next year. I won't being going with WellsFargo though. They were reporting my account incorrectly, and it said that they were included in the bankruptcy, although they were paid outside the plan.

Re: FHA Loan after Chapter 13

Anonymous — Tue, 22 Jun 2010 17:07:33 GMT

http://www.fha.com/credit_issues.cfm Again, as noted earlier, FHA itself requires NO other waiting period after you've reliably been in a Chapter 13 plan for one year. Please read the above link to the FHA website itself. Also -- again, as noted earlier -- lenders very well may have more stringent requirements than FHA. In other words, although FHA doesn't require a prescribed waiting period Wells Fargo, for example, might. A borrower must meet the most stringent standard presented. That said, there are some lenders who WILL loan to filers immediately post-discharge -- or even, with trustee permission, while the borrower is still paying his/her Chapter 13 plan -- if lending standards otherwise are met. It's not easy, however, which is why the knowledge of a mortgage broker or loan officer experienced in dealing with BKs is crucial.

Re: FHA Loan after Chapter 13

krielly — Wed, 23 Jun 2010 18:19:40 GMT

sounds like a VA issue then.....not FHA, which is what the OP was talking about obtaining.

We just did a cash out re-fi on our FHA mortgage with Wells Fargo and just received our discharge 4/9/10.

FHA requirements don't require that you are discharged for a 13, however.......it is possible to obtain a FHA mortgage DURING your 13 (meeting all sets of criteria).

Re: FHA Loan after Chapter 13

Anonymous — Thu, 24 Jun 2010 17:29:24 GMT

Thread title: "FHA Loan after Chapter 13" Why does this sound like a VA issue to you?

Re: FHA Loan after Chapter 13

krielly — Mon, 28 Jun 2010 20:54:58 GMT

Who peed in your Cherrios?

i was replying to the post by sgtm7, not the OP.

If you read my post carefully, you would notice that I DO acknowledge the OP was talking FHA, but sgtm7 had mentioned a VA Guarranty.

I was trying to make it clear to them that if they were talking VA vs FHA, it was apples & oranges.

Re: FHA Loan after Chapter 13

Anonymous — Fri, 17 Sep 2010 15:20:48 GMT

There is no waiting period after a discharged bankruptcy.. Edited

Re: FHA Loan after Chapter 13

Anonymous — Thu, 18 Nov 2010 02:09:21 GMT

Wife and I filed chapter 13 in August 2009. Made our final payment in October 2010. Should have our discharge papers in about 4 weeks. I've been online looking for mortgages and cant seem to find a lender. Would you mind telling me who you used? Anyone else know of a mortgage company that works with people just out of chapter 13?

Thanks!

Re: FHA Loan after Chapter 13

Anonymous — Sat, 09 Apr 2011 03:26:13 GMT

Hello, My wife and I are also trying to find a lender who will service a recently discharged ch 13. Our income is very suitable, we never missed a bankruptcy payment, credit score is good, etc. Banks keep telling me to wait 1 or 2 years. However I see many places online where people are talking about being able to get a loan immediately after discharge, including this thread. Were you able to get any referrals to lenders and/or does anyone have a referral for who they used? Many thanks,

Re: FHA Loan after Chapter 13

Anonymous — Sat, 09 Apr 2011 14:52:36 GMT

Feel free to email me at [Edited]

Hi leapa777,

I had to remove your email address because personal information is not allowed to be posted in the public forums per the Terms of Service. This is done for everyone's safety and security. You are free to exchange such information via PM (Private Message).

Thanks for your understanding.

-Marinevietvet, myFICO moderator

Re: FHA Loan after Chapter 13

Anonymous — Sat, 09 Apr 2011 11:05:43 GMT

We did a refi with National City Mortgage six months after discharge of a CH 13. Our BK was a non-issue; our FICO mid scores were 720 and 730.

National City Mortgage is now a part of the PNC Bank. Two months after we completed our refi, National City Mortgage transitioned to PNC Mortgage.

Hope that's helpful.

Re: FHA Loan after Chapter 13

Anonymous — Thu, 31 Jan 2013 01:38:20 GMT

Hi...I filed chapter 13 in 2008 and am about to be discharged. What bank did approve your loan? I have contacted about 10 mortgage brokers and all of them have a 1 to 2 year waiting period. We'd like to be able to get approved earlier than that if possible.

Re: FHA Loan after Chapter 13

Anonymous — Thu, 31 Jan 2013 20:49:04 GMT

You might want to start a new thread as this thread over two years old.

You typically have to wait 2 years from discharge or when the Chapter 13 is deleted off your credit reports, whichever occurs first. You can get approved before discharge but after discharge, you have to wait.

I had to wait 2 years from my Chapter 13 discharge to buy a house as well. Luckily, the 13 aged 7 yrs before the 2 year anniversary from discharge. I am closing in a week. I filed Ch 13 in Oct 2005 and it was discharged in Jan 2011. If you got the same answer from 10 different lenders, that should tell you that you can't purchase at home at this time. You will need to wait until Feb 2015.

Mortgage rules are very dynamic right now and requirements are getting stricter. This thread represents what was possible two years ago, not what is possible today.