Help! Problems getting mortgage 4 years after Ch7

[ShanetheMortgageMan]

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@ScottsdaleDad wrote:
I had a similar situation. My bk7 was discharged 2 years ago, and is not reporting on the credit bureaus. But, I have multiple mortgage lates (most recently in Jan. 2018) that are reported with the lender on a reference. My lender is New American Funding. I contacted them and asked about a new purchase loan, and they just approved me for an FHA loan. No one else would touch a new loan for 12 months. They may have approved me because they know my story and I'm a current customer, but I'm just happy they approved me. You may want to try them.

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There are two ways to qualify for an FHA mortgage.  An automated underwriting approval or being manually underwritten. 

On the topic of mortgage payment history...

To recieve an automated underwriting approval for FHA, during the most recent 12 months, you must not have three or more late payments of greater than 30 days late, one or more late payments of 60 days plus one or more 30-day late payments, or one payment greater than 90 days late.

To recieve an approval via manually underwriting, for the past 12 months you must have have made all mortgage payments on time and no more than two 30-day late mortgage payments in the past 24 months.

If there is a mortgage that isn't reporting to credit, then it is not being considered by automated underwriting.  This can still be OK as long as it's not currently delinquent, there haven't been any lates in the past 12 months, and no more than two 30 day late payments within 24 months of the FHA case number assignment date (this occurs after you have an accepted contract on a property).  If it doesn't meet those requirements, then the loan is required to be manually underwritten, which from as you can see in the paragraph above, the payment history would also fail to meet FHA guidelines.

These are standard FHA guidelines that lenders will go by (some could have overlays that are more restrictive, but none will have guidelines that are more lenient).

All of the above info can be found within the FHA guidelines at https://www.hud.gov/sites/documents/40001HSGH.pdf.