Best lender to get mortgage while in Chapter 13?

[Anonymous]

Anyone have experience getting a mortgage while you are in the middle of a chapter 13?  Also what lenders are the nicest to deal with, and follow the FHA guidlines?

[FireMedic1]

I just googled your topic. There seems to be many out there. But certain guidlines have to be met. I did see they take your Chapt 13 payments into consideration to your DTI percentage. I dont know if we can list a certain borrowers on the site. Dont want to take a chance. The mortgage section has many real estate and mortage folks there that could really help you out. Good Luck either way!

[homeloanexpert]

Hello YoureWelcome!

I done hundreds and hundreds of these over the years. The process is pretty simple and straight forward so don't stress yourself out. All government loan programs i.e. FHA, VA and USDA allow for borrowers to finance a home while in an active Bankruptcy Chapter 13 as long as you have made the most recent 12 months payments on time (not being 30 days past due) to the Trustee.

You will need to provide the Loan Officer a copy of your Voluntary Petition with Schedules and copy of your payment summary to the Trustee. The Loan Officer will take your application, run your credit and review your income and asset documentation. 

Providing you meet the lender’s criteria, they will issue you a Pre-Approval spelling out all the details to include maximum sales price, loan amount, maximum interest rate and total payment. In addition, the Loan Officer needs to provide the Court with a copy of your loan application and the fee sheet showing the necessary funds to close.

There are two methods of accomplishing a Court Approval. The Court will either except the documents listed above, or they will want the above items in addition to the petitioner being under contract on a home. It just depends on the Court. You will need to ask your Attorney which one is applicable.

Your Attorney who will then request a motion to incur debt. The Court should approve your request and issue an approval. In 30 years of doing home loans, I have only seen 1 Judge deny my borrower's petition. The process can take 5 days and up to 1 month depending on the Court. I hope this helps!

[Anonymous]

Thanks for all that great information.  My only concern is what will the trustee say when you present all this, and they see that you have like $20k saved to close with?  Whats stopping them from denying the motion then demanding that closing money be paid into the plan to the creditors.  We are no where close to paying 100% in our plan.  Thats a concern that our lawyer has as well.  Its a big one obviously.  We would need about $18k to close between the dp and the closing fees.  Thats a lot of money to be sitting on when you are supposed to be paying every red cent into your plan.  Any thoughts on this?  Also if you havent already, can you PM me your info.  I'd like to start this process with you if you are willing.

[webhopper]

homeloanexpert, 

Thank you for posting this.  I am extremely nervous.  A job loss in 2017 had me declaring Chapter 13 when I finally found a job in another state. My daughter is living in the home in Oklahoma (primary residence which exemption was claimed). I want to get a home construction loan in Texas using FHA.  The lender will basically allow me to lease the home in Sapulpa to my daughters boyfriend, who just so happens to want to buy the home in Oklahoma as soon as I am able to sell it. My daughter doesn't make much money but her boyfriend has good income and prime credit history.  Your post was great and I appreciate you sharing your experiences!  For the FHA loan I will have a co-borrower who is not in bankruptcy and this is where the land purchase and any down payment will come from.  Have you seen this situation before?