I'm looking already into the future here......way down the line of course. I've been doing a lot of reading how you can get approved for a FHA-insured mortgage 2 years after BK as long as you have 3% down payment and of course have maintained good credit after filing BK. My question is this- Is this only available for people under a certain income? We gross a little over $70,000/yr. Is this too high of an income to qualify for this type of loan? I was just wondering if it's only available for certain people that don't have a very high yearly income.
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An FHA loan is secured through a private lender, but guaranteed by the FHA, so you can go to whichever lender you choose.
There is no minumum or maximum salary requirement. There is, however, a cap on the mortgage amount. Typically, also, you must have been gainfully employed for the last 2 years, be out of foreclosure for 3 years, and discharged from BK for 2 years.
The debt to income ratio is usually around 30% and it is of utmost importance that you do not cloud the process with any major purchases before your loan closes.
The FHA loan is more forgiving of previous financial problems than a conventional loan, hence, it is a good vehicle for people who have had past financial problems.
If a problem arises in underwriting, a letter of explanation from the mortgagor usually does the trick to alleviate the snag.
Don't get too excited yet though, the cap on the mortgage tends to be low compared to most of the nation's cost of housing. Just depends on where you live. -
Thanks B12- Acutally I looked on my Bank's website and it looks like they offer FHA secured mortgage's. They will approve a loan up to 176K I believe is what they said. That will buy you a whole lot of house in my kneck of the woods. More than I even need I'm sure. Thanks again!Comment
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LOL glad to hear it. In FL here you can't even get a 1Br condo for that much, but prices are falling every day.
If you run into any problems about past history, just write a letter of explanation in detail. FHA loves a good sob story!Comment
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Thanks, I'll keep that in mind. LOL We are going to wait the standard 2 yr. before we even try to apply for the loan. So hopefully we won't run into any snags. We have good credit prior to BK and hopefully with some hard work on our credit reports after BK we will rebound. We don't plan on accumulating any debt and HOPE to maintain perfect credit after we file. If anyone has gotten one of these FHA secured loans, I would love to hear your story and experience. Was it hard? Is it as simple as it looks as far as qualifying for it after BK?Comment
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