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*******Approved with a conditions and court approved request for home loan while in chapter 13! YAY!

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New Contributor

*******Approved with a conditions and court approved request for home loan while in chapter 13! YAY!

So a little bit of background. I'm currently in a chapter 13 payment plan and have been trying to rebuild my credit to buy a home. My husband and I been renting for the last 4 years paying $2000 per month for rent (ouch!!).

 

I applied for a loan late April and put an offer on home and it accepted early May. (Only I am on the loan since my husband have a few collections on his file.) Since then we've had the inspection which went well. So it's been a stressful few weeks while giving my LO my whole life file and waiting for the underwriter to get back to me. 

 

But on a good note - - I'm offically approved with conditions (15 to be exact). I also heard back from the court and they approved my request for a home loan! Smiley Happy I couldn't be happier! I was also locked in at a rate of 4.375% over 30 years FHA loan. 

 

My conditions:

  1. Information on who you will get Hazard Insurance From so we may send them the information
  2. A signed and dated letter of explanation regarding how many people will be living in the house.
  3. Documentation for the large deposit of $8060.06 dated 3/14/2018 (source where the funds came from)
  4. Provide documentation to support paid in full/source of funds for judgement to xxxxx
  5. Provide Proof that judgements for the following accounts are paid in full and document/source used to do so: (xxxxx, xxxxx, xxxxx)
  6. Provide 2 months bank statements to document cash to close $8710, and $8247 Reserves (must be own funds). 
  7. Provide documentation for ability to withdraw retirement funds
  8. Provide source of earnest money deposit and provide evidence check has cleared (copy of cancelled check)
  9. Provide Bank Statements from 4/19/2018-5/16/2018 explain/document any large deposits
  10. Provide a signed letter of explanation from 4/17/18 Consumer real Estate; 4/18 Cr Link/Smart Mtg; Crlnk/UNVL regarding credit inquiries on credit report and provide the terms of any accounts that have been opened or will be opened prior to loan closing.
  11. Provide final signed addendum to the purchase agreement to document (my husband) being removed from Offer (contact your realtor to help you with this)
  12. Provide proof of funds from retirement account are accessible
  13. Provide letter of explanation for derogatory credit (CH 13 BK, charge offs, NSF in bank account) sign letter as well.
  14. Provide Signed and dated letter from (my husband) to give access for use of the funds in checking account
  15. Provide documentation from the BK Court that you may proceed with the transaction
  16. * In addition - they also verified my rent through VOR form. 

Apprasial is ordered for next Tuesday and I'm hoping that goes well. I wanted to let everyone else know that it's definately possible after a bankruptcy chapter 13 to obtain a home loan and after rebuilding credit.

My LO assured me that it will be smooth sailing from here! Can't wait to hear the words - CLEAR TO CLOSE!


Do you guys foresee any issues??

 

Thanks!


Current Score: TU 633
Goal Score: EQ 720 TU 720 EX 720

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Senior Contributor

Re: *******Approved with a conditions and court approved request for home loan while in chapter 13!

It all looks pretty normal to me and we just refinanced our home at the end of March. The added "questions" have to do with your Chapter 13 and satisfying judgments, etc if I read that right - yeah that's typical. Just go down the list and reply to each as needed (documentation, letters, etc).

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New Contributor

Re: *******Approved with a conditions and court approved request for home loan while in chapter 13!

Thank you! I've sent just about everything I can in at this point! My bankruptcy was pretty straight forward and I had all the documentation. 


Current Score: TU 633
Goal Score: EQ 720 TU 720 EX 720

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New Visitor

Re: *******Approved with a conditions and court approved request for home loan while in chapter 13!

Hello Lovelygal31,

Thanks for posting this, I'm just about to wade into the same scenario below. Who was your lender?

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New Member

Re: *******Approved with a conditions and court approved request for home loan while in chapter 13!

ORDtoIAH,

 

I went through this same scenario back in 2015 for my first home and I didn't have as many conditions as OP, but I needed to get permission from the court and 30 days for written permission. I went with Lone Star Financing, which is a broker. Keep in mind that no bank at the time would touch me with a 10' pole.

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Established Contributor

Re: *******Approved with a conditions and court approved request for home loan while in chapter 13!

Everything looks like standard conditions. Great job for keeping your payments to the Trustee on time! I have closed hundreds of these over the years and it's a shame more people don't know that teh Agencies FHA, VA and USDA all allow this.

 

Best wishes to you!

Mortgage Banker - Since 1988 offering FHA, VA, USDA, Conventional, Jumbo, Portfolio and NonQM Loan Products. Licensed in AL, AR, AZ, CA, FL, GA, IL, IA, IN, LA, MI, MO, NC, NE, NV, OH, OK, OR, SC, TN, TX, VA and WI.
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