FHA credit guidelines

[greenthinker]

Our Chapter 13 was discharged in March 2015. We surrendered our home in the BK, but the lender did not begin making collection efforts until after discharge. We finally sold it in a short sale in August 2016. So my question is, which waiting period applies before we can get a new loan. Do we have to wait three years from the date of the short sale (August 2019) for an FHA loan? Or, does only the two years from the date of the Chapter 13 discharge (eligible as of March 2017) apply? Since, the home was surrendered in the BK, I am hoping it’s the latter situation. Thank you in advance for any help!

[Quicke23]

Wondering if anyone has some success stories about buying a new home after Chapter 13 discharge? We're over 12 months post-discharge now and just starting to work with a lender. It would be nice to know that there are people out there who were approved between the 12 and 24 month marks post discharged. Would keep our spirits up, since right now we're just expecting rejection after rejection, even though we can more than afford a new home. Thanks!

Did you try shopping for a mortgage right after discharge? I'm supposed to get my discharge next month and I am already working with a personal friend of mine that is a loan officer about obtaining an FHA loan. We want to buy new and new in So Cal will be greater than the FHA limit. I'll let you know how it goes- I'm expecting a denial; but the positive thing I have going is that my wife has excellent credit and was not on my BK.

[LadyInTheRed]

I shopped around for a refi 18 months after discharge. I was told by several brokers and direct lenders that I would qualify for an FHA loan, but I didn't want to pay for mortgage insurance, so I decided to wait another 6 months for the BK to fall of my reports. I think if you are willing to go with FHA and you have decent credit scores, you'll qualify. Be sure to shop around. Rates, fees and lender credits varied a lot.

[cspa522]

Wondering if anyone has some success stories about buying a new home after Chapter 13 discharge? We're over 12 months post-discharge now and just starting to work with a lender. It would be nice to know that there are people out there who were approved between the 12 and 24 month marks post discharged. Would keep our spirits up, since right now we're just expecting rejection after rejection, even though we can more than afford a new home. Thanks!

[mlopez60120]

Great information but when one has Foreclosure and bankruptcy on the same mortgage what is the waiting period. BK happened first and the mortgage was included in the BK and discharged the foreclosure is happening now 3 years after BK discharged

[tobee43]

LOL!!! thanks Lady! got 'em!

[LadyInTheRed]

VALLLLLLLLLLLLLLLLLLLLLLLLEEEEEEEEEEEE we gotta spammer here in our house!!!!!!!!!!!!!!!

Not any more.

[tobee43]

VALLLLLLLLLLLLLLLLLLLLLLLLEEEEEEEEEEEE we gotta spammer here in our house!!!!!!!!!!!!!!!

[amartin]

A good-looking property is a property that will appeal to buyers, or even the FHA. Do you know the best way to get your sale house ready? Here are some tips for making your house FHA eligible - because buyers with an FHA home loan are plentiful, and you'll want to make sure that the FHA will be prepared to finance the purchase of your sale house

[marchelala]

Marcer, I hope you still around this forum and can take a second to answer my question .... We discharged in 2010, condo was IIB and non-reaffirmed, we are STAYING in a condo till now and paying it accurately... We are planning to buy a new house with FHA loan now ... I understand that we satisfied all or the waiting period already, but my question is .... so we have to explain what we are going to do with our current discharged mortgage ?? or because it is discharged, non-reaffirmed, non-reported mortgage FHA will not care ? Appreciate your input... thanks!

[researchnerd]

2. Eligibility for FHA-Insured Financing, Continued
4155.1 4.A.2.g
Waiting Period for Borrowers With Past Delinquencies, Defaults or Claims on FHA Loans

If the borrower has had past delinquencies or has defaulted on an FHA insured loan, there is a three-year waiting period before he/she can regain
eligibility for another FHA-insured mortgage. The three-year waiting period begins when FHA pays the initial claim to the lender. This includes deed-in-lieu of foreclosure, as well as judicial and other forms of foreclosures.

Is it different for foreclosure on non-FHA loans? Sorry if this has been answered before and I missed it.

Our Ch7 was discharged 11/2010 and the mortgage was IIB, but the lender didn't get off its a$$ and foreclose until almost a year later, 10/2011. The mortgage was a standard, non-FHA, fixed rate loan.

So -- if we want an FHA mortgage, do we have a 3-year wait or a 2-year, and does it start from 11/2010, or 10/2011? We're not in a big hurry to buy another house, I just want to know when we could realistically start looking.

[denisec]

Listen to Marcer all, he knows what he's talking about! Thank goodness for some accurate information!

[ValleYum]

What do you plan to do with your current house you live in? Sell it? Rent it out?

Mom wants an FHA refi

[marcer]

We were discharged on our Chapter 13 and I have not found a single broker that will work with me to get an FHA refi on my house. 4 different people have said I have to be 2 years past discharge, which is what it appears to be for chapter 7, but apparently that applies to Chapter 13 now too. Ridiculous. If anyone has any suggestions, please message me We are paying 8.5% interest and I'd hate to do it for another 2 years, I'd rather save that money to put towards a new house, my kids education, anything but interest...

Momof3~

You do not need to wait 2 years from discharge!!!!! While 2 years is ideal, less than two is completely do-able. The post I provided above and which was taken from the 4155 clearly addresses it. What you are being told is in-correct as it applies to FHA. It may be as mentioned above...to lazy, to stupid, both, or......their overlays will not allow it. An over-lay is an additional guideline on top of the exisiting guidelines in an effort to make the loan higher quality and more apt to be insured or bought. And, since FHA did not incur a loss, no additional waiting period is needed.

An example of overlays, and why some can do and others cannot. FHA requires 10% down on credit scores 500-5-579, 5% down 580-599 and 3.5% for scores above 600. If over 600, the funds can come from any close source=cept interested party, We have an overlay to this which requires All required down payment come from borrower if scores less than 640. This is not a FHA requirement, but rather our requirement. Again...in short...you can refinance your home with less than 2 years discharge ch 13.

[GettingGoing]

We did not foreclose, we kept our house through our Chapter 13 and are now discharged. I had one person tell me that it would have been better to refi while we were still IN our plan...that sucks, because we finished it!! We make to much money for a modification and we are not behind on our payments everything is current. Looks like maybe I just need to be persistent and keep trying to find a broker or lender that is willing to take the extra step or just wait until we are two years out, at that point our bankruptcy should be off our credit report too.

What do you plan to do with your current house you live in? Sell it? Rent it out?