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Can I qualify for USDA or FHA right now with previous lates.....

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Established Member

Can I qualify for USDA or FHA right now with previous lates.....

Completed BK including house in 2010, got USDA loan in Dec 2012, due to HVAC system meltdown in Summer 2012 , went on repayment plan w/ Chase , so we show 30 day late July 2013, 60 day late August 2013,  September 2013. Only other late is cap one -1 30 day sept 2013. Has now been 12 months since mortgage lates, we have 5k in reserves and would like to buy another home. We should make enough from house sale to easily have 3/5% down payment for FHA. Will the lates on the USDA mortgage thru Chase disqualify us from USDA or any mortgage from that matter. For the last year we have made all payments on time or early. Have 70k +income looking at 200k home, very little other debt.

 

Please advise!

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New Member

Re: Can I qualify for USDA or FHA right now with previous lates.....

You would have to have Loan officer run it through Automated underwriting and I would think you have a good chance (assuming you were selling that other house).  Go with a broker since they have the most options.

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Super Contributor

Re: Can I qualify for USDA or FHA right now with previous lates.....

It's been 12 months, so there is a decent chance you'd be OK.  If there was no previous BK or foreclosure, I'd say you'd have an excellent chance, but when there are late payments after a BK/foreclosure the underwriter will apply greater scrutiny.  Just make sure you have a detailed letter of explanation for when the underwriter reviews, as that'll help increase your chances.

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 3 of 10
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Established Member

Re: Can I qualify for USDA or FHA right now with previous lates.....

Forgot to mention my score is curerently 670, my only other concern is I am in sales and my income has jumped from 50k in 2013 to an estimated 80k i will makew this year. That may bump me out of USDA guidelines. Do they average last 2 years income or what? Which is best choice for my, USDA or FHA?

 

THANKS SO MUCH FOR BOTH RESPONSES!

Message 4 of 10
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Super Contributor

Re: Can I qualify for USDA or FHA right now with previous lates.....

USDA income eligibility is based on projected income, and won't average the past 2 years.  So if you are on track to make $80k in 2014 then that will be what USDA uses as the eligibility income.  But for qualifying income it'll be an average of the past 2 years (assuming you are referring to bonus, OT or commission income).

 

USDA is the better financing option in my opinion, but FHA is a little easier going on credit.  The USDA process also takes a little longer since it needs to be reviewed by the state USDA office (which in a lot of states is taking anywhere from 3-4 weeks).

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 5 of 10
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Established Member

Re: Can I qualify for USDA or FHA right now with previous lates.....

My year to date income is only 49k, so that averaged by 8 months is 72k, some of my bonuses will be year end, that may push me to 80k. Hoepfully they will average year to date.

 

BTW, I am working woth the same broker who i used last time, last time was very helpful, this time has been kind of ignoring me, that's why I thought we may have truoble getting bought this time. He is now managing the mortgage company i think, so he is probably just busy.

 

Also is it possible for us to get pre-approved thru underwriting so we can shop for a home and know we are approved and for how much, does USDA or FHA do this?

 

Thanks for the help!

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Super Contributor

Re: Can I qualify for USDA or FHA right now with previous lates.....


@tradinglife wrote:

Also is it possible for us to get pre-approved thru underwriting so we can shop for a home and know we are approved and for how much, does USDA or FHA do this?

 


For sure, and I'd highly recommend it.

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 7 of 10
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Established Member

Re: Can I qualify for USDA or FHA right now with previous lates.....

Update:

 

Closed on current homw we were seleling 10/14/14

Signed contract on home 10/15/14

$180,000 home on 5 acres

income $72,000

 

faxed bank statments, pay stibs, etc 10/16/14

Appraisel done 10/27/14

done with underwriting 11/04/14, had to send bank deposit VOD, letters regarding 3 late payments.

Supposed to be off to USDA for final approval today 11/05/14.

Broker thinks we will hear back within a week......fingers crossed!

Message 8 of 10
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Established Contributor

Re: Can I qualify for USDA or FHA right now with previous lates.....

That's great! Congrats.
EQ 773 * EX 786 * TU 797
Message 9 of 10
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Established Member

Re: Can I qualify for USDA or FHA right now with previous lates.....

Congratulate me when i get the clear to close call ha ha! Have to be out of our home we sold by 11/15/14. Already looking at rent houses just in case deal does not go thru, I am a worrier.

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