Discussion: Can Bankruptcy Filers Get Home Loans

[bkfiler]

Discussion: Can Bankruptcy Filers Get Home Loans

"You will not qualify for a FHA until a chapter7 has be discharged for 2 years. A chapter 13, you will only have to wait a minimum of 1 year from filing date."

ok i just read yet another new thing about chap 13. i heard this about chapt 7 however i have not been able to verify it yet.

maybe time to call FHA and get the facts.

what do you know about home loans and bankruptcy?

[bkfiler]

"FHA home loans allow first time home buyers and current home owners buy a home with less than 3% down or FHA home mortgage refinance up to 97% of the homes value. "

[bkfiler]

FHA Loans - Buying a Home using a FHA Loan
.................................................. .............................
The FHA loan program was created to help increase homeownership. The FHA program makes buying a home easier and less expensive than other types of real estate mortgage home loan programs. Some highlights of the FHA loan program are:

Minimal Down Payment and Closing Costs.
Downpayment less than 3% of Sales Price
100% Financing options available*
Gift for downpayment and closing costs allowed.
No reserves or required.
FHA regulated closing costs.
Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

-No minimum FICO score or credit score requirments.

-FHA will allow a home purchase two years after a Bankruptcy.

-FHA will allow a home purchase three years after a Foreclosure.

-Easier Debt Ratio & Job Requirement Guidelines such as:

-Higher Debt Ratio's than other home loan programs.

-Less than two years on the job is allowed.

-Self-Employed individuals o.k.

These advantages of the FHA loan program has made it one of the best options for most first time home buyers as well as move-up home buyers.

You do not have to be a first time buyer to obtain a FHA loan, anyone may use a FHA loan as long as you do not have more than one FHA insured loan at any one time.

Following is a list of some the various type of FHA loan programs available. Next to the name of the program is a brief description of the FHA mortgage program. Once you find a program that best suites your needs, please click on it for a detailed program description.

http://www.fha-home-loans.com/purchasing_a_home_using_fha.htm

[bkfiler]

geez, they got stuff for everyone. sounds very nice.

sunshine this one is for you!
-----------------------------


Officer Next Door Program
.................................................. .............................

The Officer Next Door (OND) Initiative offers HUD-acquired, single family homes to public police officers with the following significant benefits:

50 percent discount off appraised value.
Only $100 Down Payment required*.
Under the Officer Next Door program, HUD offers homes located in designated revitalization areas. Revitalization areas are typically in low- and moderate-income neighborhoods, have many vacant properties and often have high crime rates, but are considered good candidates for economic development and improvement.

Homes offered for sale in the program were previously insured through the FHA and then foreclosed. HUD also reduces the downpayment requirement to just $100 if the home is purchased with an FHA insured mortgage.

Following are the requirements that Officers must meet to use the program:

Officers must live in the property as their sole residence for at least three years after purchase.
Officer must be a full-time, sworn law enforcement officer who works for a city, county, state or Federal law enforcement agency. You must have the general power of arrest - not just arrest authority limited to a building or facility.
In order to purchase an Officer Next Door Home you should be pre-approved and have a letter of commitment for an approved loan.

Once your offer is approved, you will have only 48hrs. to provide the required down payment and begin your loan approval process. Get started before making your offer to insure a smooth, stress free, transaction.

[StaciMM]

FHA is not the only way to go...

[JimH]

Filer, Do you have a question or are you just bored?

[bkfiler]

its a discussion. im researching home loans now and no reason to not benefit the group.

im glad to see both of you contributing to the discussion lol

[StaciMM]

There is a discussion elsewhere on the topic... I've contributed a good bit there, and don't see the need to repeat/rehash.

[SinkingFast]

One attny specifically discussed that with us. He said you can buy after one foreclosure, but 2 foreclosures is a killer.

Also, the attny said at the 2 year post BK point, it's mandatory that certain Federal programs have to extend financing if you are otherwise qualified. FHA was one. Fannie Mae and Sallie Mae were a couple others I think I remember him saying. He rattled off a whole bunch of stuff. I don't know if the 2 year marker applies to private financing or not.

Seems like 3% down for FHA is right. We used FHA once years ago. We lost our butts on our first house and didn't have much money for downpayment so we went FHA. But FHA has it's own set of quirks you gotta adhere to. The property has to be within a certain range of the median price of the area you're buying in. The buyer's income has to be within a certain range of the median for the area. One quirk I remember is you can't have to walk thru one room/bedroom to have access to a room/bedroom. We looked at one house that had what the seller's were calling a "bedroom" off the dining room. You had to walk thru the bedroom to get to the living room at the front of the house. No hallway connection from the dining room to the living room. The Real Estate Agent said FHA wouldn't approve the house because of that. FHA has a whole set of criteria/codes you have to keep in mind while selecting the house you wanna buy. But,....... With FHA, if you don't have the associated closing costs and points, FHA doesn't have a problem with letting a parent "Gift" you the $$$ you need. You only have to get the people giving you the money to sign FHA's Gift Letter. Basically says the money/gift is freewill, is not being borrowed for repayment, and the Giver is not taking a secured interest in the property being purchased.

VA is available to people who've earned it serving in the Armed Forces.

[bkfiler]

FHA is not the only way to go...

There is a discussion elsewhere on the topic...

yes thank you for your contribution. very insightful.

here is the link to the other thread regarding buying a home after bankruptcy for quick reference:

Buying a house after Bankruptcy: http://www.bankruptcyforum.com/showthread.php?t=103

i am hoping to take it to a different level. bring articles, helpful information and tips from the authors regarding lendors, realtors and mortage professionals.

i will post as i find information. if you find any new information feel free to post it here as well.

[LostOne0069]

I just finished talking to a lawyer about filing bk... and he said that on chapter 13 you can't incurr any new debt until your bk is discharged... meaning after your 5 year plan... so... did I just talk to a bad attorney or is this true?

[bkfiler]

any new loans have to go through the trustee. and if you start making more money then he is going to want larger payments.

but your rent or current home loan payment can be used for it isntead it seems to me. depends on if that is a reasonable number.

[Anj]

We filed Chapter 7 in 2001 and was dichared in July of that year - we were able to buy a house in 2/04 - so just over 2 1/2 years after filing a chapter 7 - we got a fairly good interest rate - just .25% above what everyone else was getting...

we kept our credit spic-n-span - no late payments - we took out 2 small credit cards and kept them paid off after charging small amounts

we have a conventional loan - to avoid PMI... FHA would have required PMI which would have tacked on a couple hundred to the monthly tab.

We are in 13 now because of the house - LOL - ironic huh? We are perfect examples of how life can bite you in the butt - even being perfect angels w/unsecured debt!!

A

[bkfiler]

We filed Chapter 7 in 2001 and was dichared in July of that year - we were able to buy a house in 2/04 - so just over 2 1/2 years after filing a chapter 7 - we got a fairly good interest rate - just .25% above what everyone else was getting...

we kept our credit spic-n-span - no late payments - we took out 2 small credit cards and kept them paid off after charging small amounts

we have a conventional loan - to avoid PMI... FHA would have required PMI which would have tacked on a couple hundred to the monthly tab.

We are in 13 now because of the house - LOL - ironic huh? We are perfect examples of how life can bite you in the butt - even being perfect angels w/unsecured debt!!

A

are you saying you filed a new chapter 13?

[SinkingFast]

I just finished talking to a lawyer about filing bk... and he said that on chapter 13 you can't incurr any new debt until your bk is discharged... meaning after your 5 year plan... so... did I just talk to a bad attorney or is this true?

We've been advised that you can take on a loan to buy a home in Ch 13. But that's the only credit you can get while you're in the plan. And, you will have to get approval from the Trustee. The mortgage payment will have to be lower than your rent payment when you entered into the plan. That's to allow for extra for maint and upkeep of the house.

Also, I read on here in another thread, that you have to be in Ch 13 for a year before trying to buy a house.