FHA In Two Years

[freshcredit]

Hi, We just received out discharge from Chapter 7 in May. I am aware that we will have to wait at least two years to refi our mortgage. We have a 5 year ARM that we took out in 12/06 and it is negative amortization. The rate will be ok for the next couple of years, but I am concerned about the appraisal with the current market conditions.

Our current obligations coming out of this are the house and two cars. Will we be able to refi the house if we can show ontime payments? What if the house is upside down? Before the BK I was the only income earner, but now spouse has a full time job.

[Stilltheone]

I'm pretty sure that in order to refi, you still have to wait the 2 years....and I don't think you can be upside down in the house to do it.

We are currently upside down in our home as well...worth about $245K, owe $260K. We want to buy a larger home in 2 years and hope that the market will pick up in the next 2 years to make up our difference.

Good luck to you!