FHA loan after Chapter 13 dismissal

I am confused, I just spoke with a large mortgage Co and she stated that I could get a FHA refianance next month when my chapter 13 discharge is a yr old? Is there an exception to cut the wait time down for 13 comparitive to 7 because of the three yrs of payments instead of just walking away ?

We assume that means she is right that with our 690 FICO that the lower FHA 15yr fixed will be an option at 1yr not 2 which means a better rate to pay down quicker .

yes, jon, you should be able to obtain financing next month...i agree with what you were told.

Hi all, have read most of the posts on FHA and Chapter 13. I have done some digging, and on a Chapter 13 it says as long as you have 1 year of on time payments on your plan, you can qualify for an FHA as long as the trustee says it is okay. I filed Chapter 13 5 years ago, paid it off, got a discharge and made my payments on time everytime. I am now trying for an FHA loan...... My current debt to income ratio is around 23% with an average household annual income of 120,000. What do you think my chances are? We have made all payments on time for our current car payments, etc.... No lates at all. All replies would be appreciated.

with good income, good ratios and good credit in the last 5 years, i don't know why you'd have any troubles, lake.

there are underwriters who have an aversion to bankruptcy, and you can't predict who they work for; but what you can arm yourself with right now is an explanation letter for the bankruptcy, reiterating all that you've just stated, along with the reasons for the bankruptcy and your success in making that work.
go for it.

Hi Lake,

"Chapter 13 it says as long as you have 1 year of on time payments on your plan, you can qualify for an FHA"
You've got it right. If you've been making on-time payments for the past 1 year since the Chapter 13 filing, it is likely that you'll qualify for an FHA loan. By the way, have you checked your current credit score? You need to have a minimum of 620 FICO score as per the new rules in order to qualify for an FHA mortgage. The trustee's approval is required and of course as George said, a letter of explanation for the bankruptcy filing will hopefully help you qualify.

Regards,

Jessica.

my question is how do i get a better credit score. i'm in a charpter 13 and i want to get a house under obama's plan what can i do? how about a discharge would this increase my credit score. HELP! up front i want to say thank you. (21/2 yrs in chap13, making regular payments to the trustee

Hi

Since you have filed a bankruptcy your credit will take a hit. But under the chapter 1 plan if you keep making the payments on time, your credit score is bound to improve. Just make sure you are current on your payments and bills. You should not make any big purchase or a new loan as it can affect your credit and DTI ratio. Usually, lenders would like you to wait at least 2-3 years after the bankruptcy discharge before you apply for a loan. If you make regular payments under chapter 13 plan, the lenders may offer you a loan. But your credit score has to be good for that.

MADE CURRENT HOUSE PAYMENT ON TIME AND CHAPTER 13 PAYMENTS ON TIME UNTIL COMPLETED. SPOUSE AND MYSELF MAKE 92K YEARLY. CARS PAID OFF. DISCARGED FROM CHAPTER 13 3 MONTHS. WILL WE BE ABLE TO GET LOAN TO BUILD HOME . NO OUTSTANDING DEBT OR LATE PAYMENTS T

hi etta,

you won't be able to get a mortgage 3 months after your chapter 13 bankruptcy discharge. you'll have to wait for 1 year in order to qualify for a fha loan and 2 years after the discharge for a conventional loan.

take care.

we come off capt...13 and we still have bad c. but we still want to buy a home ,,want can we do

Hi Amelia,

Immediately after a bankruptcy discharge, you will not be able to get a mortgage. After chapter 13 discharge, you will have to wait for 1-2 years to get a mortgage. In the meanwhile, you can take steps to improve your credit score.

Thanks