FHA after bankruptcy

[Anonymous]

Yes, we would qualify based on those statements. The down payment isn’t too much of an issue.

[Scupra]

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@Anonymous wrote:
Yes, we would qualify based on those statements. The down payment isn’t too much of an issue.

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I would start looking for a Loan Officer that will work a deal like this. The exception is there, trying to find a lender that will do it is the hard part. My understanding is that it is not an easy process. I wish you the best of luck!!

[Anonymous]

Thanks for the heads up. If we had to wait 2 years it would be fine, too. Didn’t realize the difficulty involved.

[Scupra]

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@Anonymous wrote:
Thanks for the heads up. If we had to wait 2 years it would be fine, too. Didn’t realize the difficulty involved.

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Waiting 2 years would put you in a much better postion. Talking with some LO's at this point couldn't hurt anyway. If you find someone who is willing to take some time with you now, you know they will be a good LO to work with while you are going through the buying process. Last thing you want is a LO that cant respond  

[homeloanexpert]

Hello,

After a BK Chapter 7 depending on the loan program, the waiting can very. Here is a quick rundown.

• NonQM/Portfolio – 1 day after BK, Short Sale, Foreclosure. These loans are 100% credit score driven. The higher the score the lower the rate. They do have higher rates and fees and down payment requirements. These programs can be viable way to enter the housing market as long as you have an exit strategy.
• VA – 2 years unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year. Under the extenuating circumstances waiver, you will need to provide appropriate documentation to support your hardship.
• FHA – 2 years unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year. Under the extenuating circumstances waiver, you will need to provide appropriate documentation to support your hardship.
• USDA Rural Development Loan – 3 years, unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year.
• Conventional – 4 years, unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 2 years.

Hope this helps!

[twono]

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@homeloanexpert wrote:

Hello,

After a BK Chapter 7 depending on the loan program, the waiting can very. Here is a quick rundown.

• NonQM/Portfolio – 1 day after BK, Short Sale, Foreclosure. These loans are 100% credit score driven. The higher the score the lower the rate. They do have higher rates and fees and down payment requirements. These programs can be viable way to enter the housing market as long as you have an exit strategy.
• VA – 2 years unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year. Under the extenuating circumstances waiver, you will need to provide appropriate documentation to support your hardship.
• FHA – 2 years unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year. Under the extenuating circumstances waiver, you will need to provide appropriate documentation to support your hardship.
• USDA Rural Development Loan – 3 years, unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year.
• Conventional – 4 years, unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 2 years.

Hope this helps!

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Are the time frames and circumstances for each type of loan you listed....the LAW?  As in you CANNOT get an FHA in less than 2 yrs if there are no hardship circumstances to warrant a 1 yr post BK FHA loan?

i.e.....At  18 months post BK, I put down $50k on a $120k house and fico scores are in the 680 range and perfect credit history for 20 yrs up til the BK filing....still no FHA for 2 yrs?

[twono]

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@twono wrote:

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@homeloanexpert wrote:

Hello,

After a BK Chapter 7 depending on the loan program, the waiting can very. Here is a quick rundown.

• NonQM/Portfolio – 1 day after BK, Short Sale, Foreclosure. These loans are 100% credit score driven. The higher the score the lower the rate. They do have higher rates and fees and down payment requirements. These programs can be viable way to enter the housing market as long as you have an exit strategy.
• VA – 2 years unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year. Under the extenuating circumstances waiver, you will need to provide appropriate documentation to support your hardship.
• FHA – 2 years unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year. Under the extenuating circumstances waiver, you will need to provide appropriate documentation to support your hardship.
• USDA Rural Development Loan – 3 years, unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year.
• Conventional – 4 years, unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 2 years.

Hope this helps!

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Are the time frames and circumstances for each type of loan you listed....the LAW?  As in you CANNOT get an FHA in less than 2 yrs if there are no hardship circumstances to warrant a 1 yr post BK FHA loan?

i.e.....At  18 months post BK, I put down $50k on a $120k house and fico scores are in the 680 range and perfect credit history for 20 yrs up til the BK filing....still no FHA for 2 yrs?

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Anyone?  Will a large down payment change the parameters for a FHA loan inside the 2 yr post DC mark?

[Anonymous]

I’m not sure if it’s law but I’ve been told that there is absolutely 0 chance of an FHA loan (or any kind) in under the timelines unless there were very extenuating circumstances around it that are unlikely to happen again. This honestly makes sense, both on the bank’s behalf and the person needing the loan. If you couldn’t handle money before, it’s better to just wait out the timeline and get a good handle on your finances. Two years really isn’t that long - just enough time to build better habits, build up emergency savings so you don’t end up in debt again, and save for a home. If your situation was due to the death of a family member or some other extreme situation, that’s what the exception (1 year) is there for, as it should be.

[twono]

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@Anonymous wrote:
I’m not sure if it’s law but I’ve been told that there is absolutely 0 chance of an FHA loan (or any kind) in under the timelines unless there were very extenuating circumstances around it that are unlikely to happen again. This honestly makes sense, both on the bank’s behalf and the person needing the loan. If you couldn’t handle money before, it’s better to just wait out the timeline and get a good handle on your finances. Two years really isn’t that long - just enough time to build better habits, build up emergency savings so you don’t end up in debt again, and save for a home. If your situation was due to the death of a family member or some other extreme situation, that’s what the exception (1 year) is there for, as it should be.

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Thanks and understood....but, what if i've been paying $1200 mo for rent for the last 10 yrs, and would like to better manage my finances by lowering my monthly housing payment which would involve buying a home whereas my monthly payment would be sub $700?

I don't see any difference in managing your monthly rent payment vs mortgage payment, especially when the payment is $500 less thus making it much easier to manage.

[Anonymous]

The difference is that if you have a major issue with the rental, it isn’t your responsibility. Owning a home means that you would need to have a lot more emergency savings in order to handle home issues (which will happen). Also, if your financial situation changes, it’s much easier to get out of a lease than it is to get out of a mortgage. There are many hidden costs that come with owning a house that require more financial stability.