topic Re: 2 Years Post Chapter 7 & Construction Loan? in Mortgage Loans

2 Years Post Chapter 7 & Construction Loan?

ToofDoc — Tue, 05 Oct 2021 03:11:01 GMT

Do you guys know of any construction loan companies that will work with applicants with a 2 years after discharge to chapter 7?

Here are some DPs:

I am building a brand new $1.5M house and can put up to 35% down. I know FHA loans do accept 2 years post discharge applications, but they do have a max loan cap at $356K in the county that I plan to build my new house so a FHA loan will not work.

My time frame is I like to have a preapproval set up by August 2022 (10 month from now). My current mortgage middle credit score (FICO 5, 4, 2) is 625 and will for sure increase by August 2022.

I talked to a loan company today and he said he would need 5 years after discharge for a traditional construction loan! 😱

Any ideas on who I can call that will offer construction loans in the state of PA that will work with a 2 year old bankruptcy discharge?

Re: 2 Years Post Chapter 7 & Construction Loan?

TattnallTrio — Tue, 05 Oct 2021 03:28:07 GMT

Call BECU and ask them. They are licensed for mortgages in select states (WA, OR, ID, CA, AZ, IL, PA, SC) and Pennsylvania is on the list.

Re: 2 Years Post Chapter 7 & Construction Loan?

ToofDoc — Tue, 05 Oct 2021 03:47:11 GMT

@TattnallTrio wrote:
Call BECU and ask them. They are licensed for mortgages in select states (WA, OR, ID, CA, AZ, IL, PA, SC) and Pennsylvania is on the list.

Thanks! I looked them up, doesn't look like they offer construction loans? Did you have past experiences with this Credit Union in construction loans?

Re: 2 Years Post Chapter 7 & Construction Loan?

VALoanMaster — Tue, 05 Oct 2021 17:38:56 GMT

@ToofDoc wrote:
Do you guys know of any construction loan companies that will work with applicants with a 2 years after discharge to chapter 7?

Here are some DPs:

I am building a brand new $1.5M house and can put up to 35% down. I know FHA loans do accept 2 years post discharge applications, but they do have a max loan cap at $356K in the county that I plan to build my new house so a FHA loan will not work.

My time frame is I like to have a preapproval set up by August 2022 (10 month from now). My current mortgage middle credit score (FICO 5, 4, 2) is 625 and will for sure increase by August 2022.

I talked to a loan company today and he said he would need 5 years after discharge for a traditional construction loan! 😱

Any ideas on who I can call that will offer construction loans in the state of PA that will work with a 2 year old bankruptcy discharge?

You're in a tough spot in my humble opinion.

A jumbo construction loan with a 2 year old BK and a 625 mid score is a unicorn.

Construction loans are generally tied to conventional underwriting guidelines and jumbo loans are generally even tougher on major derogatory hits like foreclosure and BK.

Good luck and please update us if you do find an option.

Re: 2 Years Post Chapter 7 & Construction Loan?

ToofDoc — Tue, 05 Oct 2021 19:11:06 GMT

@VALoanMaster wrote:

You're in a tough spot in my humble opinion.
A jumbo construction loan with a 2 year old BK and a 625 mid score is a unicorn.
Construction loans are generally tied to conventional underwriting guidelines and jumbo loans are generally even tougher on major derogatory hits like foreclosure and BK.
Good luck and please update us if you do find an option.

I will! I'm afraid my situation will be a tough battle to over come.