FHA with not so great credit?

JMMD · ‎06-11-2013

My husband and I filed BK in 2011 and were dischanrged in 2012. After we were discharged we had some lates on my husbands SL. Stupid but whats done in done. We have cleaned up our CR as much as we can and are planning on GW the SL, but I am not very hopeful they will remove the lates. We got a secured loan and secured CC and plan to get another secured CC this month to help build out credit scores.

We are hoping to buy in April 2014. We already spoke with a LO and he said it might be an issue because of the lates after the BK, but mentioned having reserrves to offset the lates. I'm not entirely sure how this would work. Anyone have sucess obtaining a loan undderr similar circumstances?

Anonymous · ‎06-11-2013

If these are federal loans isn't there some type of rehab program where the loan is eventually returned to a positive status and the lates "disappear". If they are private loans I know there is not much chance. In any event trying to speculate what lender guidelines will be like in another year or two is about the same degree of success as predicting who will win all of next years major sports championships. We may all have an opinion and statistics to back it up, but the reality is often surprising.

With the housing market coming back at the moment it's just as likely that qualifications will ease as it is that they will stay the same or tighten. I don't mean ease to the "Can they fog a mirror" standards of the early 2000's or the liar loan standards. But when lenders are confident that they can get their money back if you default, they are more willing to give out their money and overlook minor blips.

JMMD · ‎06-11-2013

@Anonymous wrote:
If these are federal loans isn't there some type of rehab program where the loan is eventually returned to a positive status and the lates "disappear". If they are private loans I know there is not much chance. In any event trying to speculate what lender guidelines will be like in another year or two is about the same degree of success as predicting who will win all of next years major sports championships. We may all have an opinion and statistics to back it up, but the reality is often surprising.

With the housing market coming back at the moment it's just as likely that qualifications will ease as it is that they will stay the same or tighten. I don't mean ease to the "Can they fog a mirror" standards of the early 2000's or the liar loan standards. But when lenders are confident that they can get their money back if you default, they are more willing to give out their money and overlook minor blips.

@I'm not sure. The months since we started repaying all show OK, so i don't know? I did cal and ask @ the lates and the rep told me to write a letter and they would review it, but she didnt sound very positive.