I am confused about the seasoning of a Chapter 13 requirement when trying to get a mortgage. We are applying for a VA loan and have a full VA entitlement.
My wife filed a chapter 13 bankruptcy in August, 2009. We made payments under the plan for 5 years and it was discharged in September, 2014. No foreclosures.
Since then our credit has significantly rebounded. Our scores are 706/720/737 and my wife is 696/702/710. Our back end debt ratio will be below 40%. There are no late payments on the credit report. There is one medical collection from 2011 for $730. This collection account has been in dispute since its inception and to be quite frank - we are not paying it until the original creditor can produce the reason why they did not bill our second insurance (the original creditor billed our secondary insurance for 5 other procedures on the same date, but somehow missed this statement). When we disovered the error in 2011, we offered to pay the doctor what insurance would have ultimately settled for, but instead they sent it to collections. Either way, this is the only post BK derogatory item.
Our credit cards are for the most part paid off - we are below 10% utilization.
So why the Refer recommendation.
Fannie Mae guidelines seem to state we have to wait 2 years from the 9/2014 discharge date, yet I see other guidelines that say as long as we made 12 months of on time payments under the bankruptcy plan (this would have occured in September, 2010), we are fine. So if I am reading the Fannie Mae guidelines correctly, if you file a 7, you can get a loan 4 years later. But if you enter a repayment plan and file a 13, you have to wait the 5 years + 2 years after diacharge. So confused.
Can somebody in the industry shed some light on this for me.
