USDA mortgage - 10 months after BK7 Discharge!

[awayalways]

I just wanted to tell everybody that it is possible to get a mortgage 10 months after BK7, even with a home IIB on your credit report. I just did! And I got a USDA guaranteed mortgage that I applied for at my local Bank. I applied with a 663 middle fico and was approved for a 30 year 5.5% interest rate up to 43% DTI (but I only used 29%). No PMI, no money down and seller paid the closing costs. Just closed today!

I hope everyone else needing a home will find a way too.
May God Bless you all.

[spearmint]

What is "IIB"?

[StartingOver08]

iib = included in bankruptcy

[spearmint]

Ohhh - thank you!

And congratulations to the OP!!!

[Scooter10]

I just wanted to tell everybody that it is possible to get a mortgage 10 months after BK7, even with a home IIB on your credit report. I just did! And I got a USDA guaranteed mortgage that I applied for at my local Bank. I applied with a 663 middle fico and was approved for a 30 year 5.5% interest rate up to 43% DTI (but I only used 29%). No PMI, no money down and seller paid the closing costs. Just closed today!

I hope everyone else needing a home will find a way too.
May God Bless you all.

Thats great, give us some more details. I looked into the program but my income is to high. what was you income? how much of a loan? where at?
If you don'y mind sharing....

[awayalways]

Thats great, give us some more details. I looked into the program but my income is to high. what was you income? how much of a loan? where at?
If you don'y mind sharing....

In my area of Florida, income for two was limited to 54k. But if you have more people living with you the income limits are higher. Just check out the USDA website for the income limits in your state and county based on your household size to see if you qualify. My home loan was 120k for a newer 2000sf home. It was an REO property that appraised for 170k. I applied for this loan with a USDA approved bank instead of using a broker and the whole process went very smoothly. My lender told me that the USDA guaranteed loans usually only go up to 29% DTI but because I had no other debts, I could go up to 43% DTI. Also, the lender said that with a middle fico of 660 or higher, that you do not need a letter of explanation.

Every other board I have visited said there was no way to get a mortgage less than 3 years after BK7 with your house IIB on your credit report. Well I was approved in 9 months and closed in 10 and I hope other people can too.

[hopejones]

That's so, so, so good to hear! Congrats to you. I'd never heard of an USDA loan.....thanks so much for sharing. As we are in desperate need of a somewhat larger place, I'm off to research this.

[relief13035]

That is amazing news. Congratulations.

[tiredofdebt1]

So i have checked out the website. How do you apply?

[awayalways]

So i have checked out the website. How do you apply?

The USDA website has a list of approved lenders. Contact whoever you prefer in your area and then ask them for an application. In my case, I went to the bank with a copy of my credit report and explained my situation. They gave me an application to fill out, and a week later I returned with all the information they requested. Another week and I received a pre-approval letter from them. Then get a realtor to find a home that meets all your lenders requirements. The USDA website has a page where you can enter an address and it will tell you if it is in a USDA approved area. Generally these are outside the city limits.

After you find your dream home, and the seller accepts your offer, the lender will order a survey, appraisal and such. Provided this is all good, the final step is USDA approval. My lender submitted my application to the USDA online and received an answer in 2 days.

I hope you can find a good home too.

[gophermn]

AWESOME post!! I am happy for you!!
I am about 1yr into my discharge and have been told (in this forum) that I need to sit for 2yrs before even applying for a refi.
THIS IS KILLING ME - 9.25% when rates are at 5%.
You give me hope! And in todays economy - a lot of us need that!!

[Ugh07]

This is possible with USDA but not every USDA lender will do it. If a lender follows USDA guidelines eaxactly then the only requirement is a 620 score, anything above that and no explanations are required regarding credit. The problem is most Banks/Lenders are not following that guideline and are in fact requiring 3 years post BK/FC. Good Job on finding the right lender.

Also, USDA is for purchase money only, no refinances

[PoorGrammyinBK7]

I couldn't find on the USDA site where it shows the actual areas that qualify for these loans. Can you post a link? I am looking at Florida.

[awayalways]

I couldn't find on the USDA site where it shows the actual areas that qualify for these loans. Can you post a link? I am looking at Florida.

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Then select your housing type from the menu on the left side.

[PoorGrammyinBK7]

Thanks - that helped!