Conventional loan after HELOC Discharge

[Anonymous]

Need to find an answer to this, I'm currently approved for an FHA 30 year fixed rate at 4.85%. Catch is I have to pay PMI even though I'm putting dow 20%. I had a home equity discharge back in August 2016. Can I get a conventional loan? Or is it a 3 year wait? I thought I could get a conventional after 2 years with a extenuating circumstances letter.

[kc0039]

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@Anonymous wrote:
Need to find an answer to this, I'm currently approved for an FHA 30 year fixed rate at 4.85%. Catch is I have to pay PMI even though I'm putting dow 20%. I had a home equity discharge back in August 2016. Can I get a conventional loan? Or is it a 3 year wait? I thought I could get a conventional after 2 years with a extenuating circumstances letter.

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Discharge? What do you mean by discharge? Bankruptcy Discharge? Chapter 7 or 13?

Extenuating circumstance nowadays is more like an economic disaster. That's what most underwriters would take to even consider approving a loan with extenuating circumstance. Are you VA eligible? If you are, go that route. Also, I would put less down with the FHA loan, put the rest of the money in a fund where it makes more than 5%, wait the recommended "cooling" down period and refinance to a conventional loan. That's just my opinion though.

[Anonymous]

We owed $65,000 on the HELOC, we got an offer of $35,000 to pay it off, I used $35,000 cash to pay it off and settle it. Sold the house normal last year

[kc0039]

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@Anonymous wrote:
We owed $65,000 on the HELOC, we got an offer of $35,000 to pay it off, I used $35,000 cash to pay it off and settle it. Sold the house normal last year

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Oh okay. So a short sale. Then yes, the waiting period is a total of 4 years for short sale. You'll definitely have to go FHA then.

[Anonymous]

But it's not really a short sale, like I said we sold it normally a year later, shows up as a discharge on my credit

[kc0039]

A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished. (Wikipedia). 

If it is a discharge and NOT considered a short sale, why is your lender giving you an FHA? There's a lot of pieces that haven't been mentioned. Credit score, down payment, debt-to-income?

[Anonymous]

Average credit score 696, 20% down. I make $125k a year

[kc0039]

If its says discharge on the credit report, then you can go conventional IF any bankruptcies in the past 4 years?