FHA Loan?

[Logan]

Has anyone applied for a mortgage with less than 2 years out of Ch.7.

I'm calling around and getting mixed answers. My own research say 2 years but if you have a good reason (job loss and divorce for me) it can be as little as 1 year for an FHA loan.

I need a broker who actually knows they can get exceptions since my fiance and my income combined is 140K and she has very little debt. I am the bread winner so I'm the qualifier.

Thanks,

Logan

[halloweendmb1]

Logan I am a mtg professional and FHA is pretty hard and fast on the 2 yr rule. Fannie/Freddie are now saying 4 years out of BK.

I would try a community bank/credit union and walk in there pleading your case, make good money be prepared to put at least 20% down and show them you manage your money now properly. FHA loans are too expensive a communoty bank/credit union will be a better option. Yes it will be a 3-5 yr arm but that will buy you time for the bk to get older and proof you can pay on time. I work for a community bank and we would consider this if you made that much with a 20% down payment and a budget plan

[Logan]

Logan I am a mtg professional and FHA is pretty hard and fast on the 2 yr rule. Fannie/Freddie are now saying 4 years out of BK.

I would try a community bank/credit union and walk in there pleading your case, make good money be prepared to put at least 20% down and show them you manage your money now properly. FHA loans are too expensive a communoty bank/credit union will be a better option. Yes it will be a 3-5 yr arm but that will buy you time for the bk to get older and proof you can pay on time. I work for a community bank and we would consider this if you made that much with a 20% down payment and a budget plan

Thanks....I did get approved yesterday with 5% down. My FICO is 684 and my DTI would be about 38%.

I'm going to wait a little longer since credit may loosen a bit later in the year.

What is your max LTV these days?
Logan

[HHM]

By DTI, you mean that your monthly payment would be 38% of your Gross Monthly Income? If that is the case, f'ing run. From a purely practical financial perspective, that is way too high and you are setting yourself up for a future BK, sorry to say.

[monkatom]

HHM I have heard 25% no more than 30% of gross for DTI does that sound right?
Thanks

[HHM]

HHM I have heard 25% no more than 30% of gross for DTI does that sound right?
Thanks

Correct, but even 30% of gross is pushing it, because at 30% gross, you are really pushing 42-46% of net.

[Logan]

By DTI, you mean that your monthly payment would be 38% of your Gross Monthly Income? If that is the case, f'ing run. From a purely practical financial perspective, that is way too high and you are setting yourself up for a future BK, sorry to say.

Really? I beg to differ.

BTW, I'm looking at homes for 450K.....

Logan

[Logan]

Correct, but even 30% of gross is pushing it, because at 30% gross, you are really pushing 42-46% of net.

So I net 9K a month so I'll still have $4500 left over.....I think I can live on that.....

[hereforinfo]

Good luck getting that loan to closing. Most of the approvals these days are getting shot down before closing. BTW, what lender approved 95% LTV?

[Logan]

Good luck getting that loan to closing. Most of the approvals these days are getting shot down before closing. BTW, what lender approved 95% LTV?

I was a loan officer for a Hard Money/Private Money lender for 4 years so I know immediately if a lender is full of it and I know how to present my case.

I've actually spoken with two that can approve me and many others that cannot. I'm going to wait until September anyways since I can save another 30K by then so that I'll have more reserves and then I will have no doubts about FHA approval. I just wanted an approval now just in case I find a property I cannot resist.

Unless you can put 20% down most people are better off putting as little down as possible so they have reserves in the bank for the piece of mind. I recommend at least 4 months reserves available after the home purchase.

Logan

[HHM]

Really? I beg to differ.

BTW, I'm looking at homes for 450K.....

Logan

Ok, knock yourself out. Go get a house payment for 50% of net. I can't help but wonder how much better that money can be spent. Some people give into desires, and others plan and calculate to acheive goals.

[movingon]

I also agree with the "if you can't put down 20%, put down as little as you can" to fatten up reserves. When Sept hits (that's 2 yr discharge date), I'll be using my VA loan, rolling the origination fee into the mortgage and my company pays my closing costs (relo benefit). However, I am looking into NACA to see if anything can be done sooner; heard mixed info, but I won't know till I give it a shot. Worse they can do is say no and I'll wait till Sept.

I net $7200 a month, but I'm looking at $150K-$225K range...first time in my life (had 4 mortgages already) that I won't be mortgage strapped. BK made me realize that has been the root of my past financial issues. My high mortgages in the past never allowed me to save...

Good luck with your loan.

[halloweendmb1]

Logan, Hard money lenders never give good rates. Right now prime customers with perfect credit are getting 30 yr fixed rates ta 4.75%, I would bet a hard money lender will give a rate 8.5% or higher.

As for the DTI I will never go over 25% net income from here on out.

Plus the 5% down approval will require PMIwhich I don't think you can get w/ a bk less than 2 yrs out.

[Mark80]

Ok, knock yourself out. Go get a house payment for 50% of net. I can't help but wonder how much better that money can be spent. Some people give into desires, and others plan and calculate to acheive goals.

Completely agree, I have had a few loans over the years with 35-40% of net and it seemed like I would have TONS of cash sitting around. How wrong I was, after utilities, taxes, insurance and all the little things we all want it really added up.

Then throw in more kids, and things start to get tight. I learned my lesson and will never peak 25% again.

[hereforinfo]

I was told MI is impossible to get right now, even with a perfect credit score.