USDA -bk7 discharge 7 months

[debtfull]

I am looking for a lender that will do a usda loan before the 2 year discharge date. I had extinuating circumstances (Medical debt, and spouse lost job) and had great credit up until 1 year before bk and have restablished credit since discharge. I have saved up $7000 and cant find a lender Everyone I talk to says 3 years. I live in WI btw-Any suggestions!?

[Logan]

I am looking for a lender that will do a usda loan before the 2 year discharge date. I had extinuating circumstances (Medical debt, and spouse lost job) and had great credit up until 1 year before bk and have restablished credit since discharge. I have saved up $7000 and cant find a lender Everyone I talk to says 3 years. I live in WI btw-Any suggestions!?

FHA is 2 years and you'll need more than $7000.

[songbird81]

FHA is 2 years and you'll need more than $7000.

This is incorrect. OP asks about USDA not FHA.

Try creditboards.com - there are lenders and brokers there who can help.

[Logan]

This is incorrect. OP asks about USDA not FHA.

Try creditboards.com - there are lenders and brokers there who can help.

What I said is incorrect? OK

[Logan]

This is incorrect. OP asks about USDA not FHA.

Try creditboards.com - there are lenders and brokers there who can help.

Hey Songbird....Do you think someone will loan this guy money 7 months out of BK with 7K in the bank?

[songbird81]

Hey Songbird....Do you think someone will loan this guy money 7 months out of BK with 7K in the bank?

Yep, USDA will do it, which is what the OP was asking. Even if the OP wanted to go FHA and wait the 2 years (or 3 if a home was included in BK), they would just need 3.5% down. Depending on the home price, it's totally doable with $7k.

[DebtEnder]

http://www.bkforum.com/showthread.php?t=37041&highlight=usda

This member got a usda backed loan within 10 months of being discharged. However he he did say it up to the bank to offer the program. So yes it could be very possible if you can find a bank willing to offer the terms, but the do not have too.

[Logan]

http://www.bkforum.com/showthread.ph...highlight=usda

This member got a usda backed loan within 10 months of being discharged. However he he did say it up to the bank to offer the program. So yes it could be very possible if you can find a bank willing to offer the terms, but the do not have too.

According to the post you cited the income for 2 must be below 54K and their DTI was 29% which isn't much of a house in much of this country. I don't think this is a realistic scenario for most and I would bet that the number of people that will fit the criteria of a USDA backed loan will fit in a Fiat.

I can tell you right now that 1.5 years out of BK with a 668 FICO and 40K in the bank USDA would turn me down.

Sorry but I stand by my original post and wait two years and go FHA.

Logan

[Logan]

This is right from the horses mouth at http://www.usda.gov/wps/portal/usdahome


Rural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans.

Purpose: Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility: Applicants for direct loans from HCFP must have very low or low incomes. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to review area income limits for this program. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant's income. However, payment subsidy is available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. .

Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy.

Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.

Approval: Rural Development officials should make a decision within 30 days of the Rural Development office's receipt of the application.

Basic Instruction: 7 CFR Part 3550 and HB-1-3550

[songbird81]

According to the post you cited the income for 2 must be below 54K and their DTI was 29% which isn't much of a house in much of this country. I don't think this is a realistic scenario for most and I would bet that the number of people that will fit the criteria of a USDA backed loan will fit in a Fiat.

I can tell you right now that 1.5 years out of BK with a 668 FICO and 40K in the bank USDA would turn me down.

Sorry but I stand by my original post and wait two years and go FHA.

Logan

Yours would be an easy approval for a USDA Guaranteed. There are two types of USDA loans - the Direct loans are for low income and the house must be under a certain price. Both the income limits and house price are very dependent on the area you'd be buying in. The second type is the Guaranteed loan which has some income limits, but no limit to the house price. Works just like FHA in that a lender approves you and USDA backs the loan. I know what I'm talking about - I'm going through underwriting right now for a Guaranteed loan and I'm 15 months out of BK 7. Here's the link with geographic income and housing limits (as applicable):

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

[Logan]

[QUOTE=songbird81;270638]Yours would be an easy approval for a USDA Guaranteed. There are two types of USDA loans - the Direct loans are for low income and the house must be under a certain price. Both the income limits and house price are very dependent on the area you'd be buying in. The second type is the Guaranteed loan which has some income limits, but no limit to the house price. Works just like FHA in that a lender approves you and USDA backs the loan. I know what I'm talking about - I'm going through underwriting right now for a Guaranteed loan and I'm 15 months out of BK 7. Here's the link with geographic income and housing limits (as applicable):

http://eligibility.sc.egov.usda.gov/...lcomeAction.do[/QUOTE

I make too much for a USDA loan and I'm also looking for a multi-family so someone else can pay my mortgage and the properties will not meet USDA guidelines. USDA loan limits in Santa Barbara where I am from aren't even high enough to buy a condo let alone a single family home.

Logan

[rf99k]

According to the post you cited the income for 2 must be below 54K and their DTI was 29% which isn't much of a house in much of this country. I don't think this is a realistic scenario for most and I would bet that the number of people that will fit the criteria of a USDA backed loan will fit in a Fiat.

I can tell you right now that 1.5 years out of BK with a 668 FICO and 40K in the bank USDA would turn me down.

Sorry but I stand by my original post and wait two years and go FHA.

Logan

To clarify: Under the USDA guidelines; The 29% DTI Ratio is for the front end, the back end(PITI + all other liabilities) ratio max is 41%, or 43% if the home was built after 2001.