topic Re: Apply for FHA now or wait in Mortgage Loans

Apply for FHA now or wait

Anonymous — Mon, 04 Oct 2021 09:53:09 GMT

Question:

-Ch 13 dismissed 24 months ago

-no late payments (mortgage, installments) in last 20 months

-10% down payment

-680 fico

- low debt to income

-$150000 annual income

Do you think I can get FHA AUS now or should I wait until full 24 months no late payments?

Re: Apply for FHA now or wait

Mortgage-Specialist — Mon, 04 Oct 2021 14:46:37 GMT

Why was it dismissed? Was it for non payment?

Re: Apply for FHA now or wait

Anonymous — Mon, 04 Oct 2021 20:04:33 GMT

Yes nonpayment

Re: Apply for FHA now or wait

Mortgage-Specialist — Mon, 04 Oct 2021 21:19:03 GMT

You mentioned that you had no late payments in the past 20 months... Tell me about the previous 4 months. How many installment lates did you have? How many mortgage lates and how many revolving lates. Also reference if they were 30/60/90/120 days late

Re: Apply for FHA now or wait

Anonymous — Mon, 04 Oct 2021 21:31:14 GMT

Chapter 13 dismissed 10/2019

last late payment on mortgage 1/2020

Re: Apply for FHA now or wait

VALoanMaster — Mon, 04 Oct 2021 21:40:14 GMT

@Anonymous wrote:
Question:
-Ch 13 dismissed 24 months ago
-no late payments (mortgage, installments) in last 20 months
-10% down payment
-680 fico
- low debt to income
-$150000 annual income

Do you think I can get FHA AUS now or should I wait until full 24 months no late payments?

The guidelines say if you are not 2 years post discharge, the file must be downgraded to a Refer and manually underwritten.

How late did you go on the mortgage?

Re: Apply for FHA now or wait

Mortgage-Specialist — Mon, 04 Oct 2021 22:24:01 GMT

That's your only late in the past 24 months? Just a 1x30 on your mortgage?

Re: Apply for FHA now or wait

Anonymous — Tue, 05 Oct 2021 23:11:29 GMT

Last late mortgage 90 days February 2020. It will be a full 24 months of no lates on anything February 2022. Should I wait to apply March 2022? Ch 13 was dismissed 10/2019. Ive just reached the 2 year seasoning, but I'm concerned about mortgage late in 2/2020.

Re: Apply for FHA now or wait

Mortgage-Specialist — Wed, 06 Oct 2021 16:02:06 GMT

The 90 day mortgagr late will prevent you from getting a manual approval (within 24 months) but if you were to get an automated approval you'd still be okay

Re: Apply for FHA now or wait

VALoanMaster — Thu, 07 Oct 2021 16:35:24 GMT

@Anonymous wrote:
Last late mortgage 90 days February 2020. It will be a full 24 months of no lates on anything February 2022. Should I wait to apply March 2022? Ch 13 was dismissed 10/2019. Ive just reached the 2 year seasoning, but I'm concerned about mortgage late in 2/2020.

Since your file would have to be down graded to a manual underwrite, the 90 day late payment on your mortgage would be grounds for your application to be denied. Your best bet is to wait until the last late payment on your mortgage is 25 months old.

Re: Apply for FHA now or wait

Mortgage-Specialist — Thu, 07 Oct 2021 17:03:18 GMT

Re: Apply for FHA now or wait

Mortgage-Specialist — Thu, 07 Oct 2021 17:04:05 GMT

Not all lenders downgrade to a manual and will accept AUS.

Re: Apply for FHA now or wait

VALoanMaster — Thu, 07 Oct 2021 17:39:11 GMT

@Mortgage-Specialist wrote:
Not all lenders downgrade to a manual and will accept AUS.

If the FHA guidelines require it, they have to.