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Answers (12)
- archie1610
- Contributions:31
Sydney,We have a good amount saved up. The house we are interested in is new construction.It will only be ready around July 2011.We have about 1 yr of money saved up in our price range house mortgage in case of no money flowing in.
The point is where shud I be looking for lenders?
The point is where shud I be looking for lenders?
- Sydney10
- Contributions:31
It's great that you want to move forward. But I would think long and hard about whether you are truly ready when you haven't paid off old debts yet.
First time buyers don't always know that houses come with large additional expenses and obligations, both predictable and unpredictable. The term "money pit" is pretty accurate. :) You need a substantial emergency fund to cover those things, and more importantly, in case of any future job loss. At least six months of income saved is a basic minimum to protect yourself from future disaster.
If you're not really ready financially, the smartest thing to do is wait.
First time buyers don't always know that houses come with large additional expenses and obligations, both predictable and unpredictable. The term "money pit" is pretty accurate. :) You need a substantial emergency fund to cover those things, and more importantly, in case of any future job loss. At least six months of income saved is a basic minimum to protect yourself from future disaster.
If you're not really ready financially, the smartest thing to do is wait.
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
last I heard a chapter 13 was a repayment plan; I wouldn't call anyone in Ch 13 a deadbeat.
- archie1610
- Contributions:31
bmbutler,That was uncalled for. We had tough times before I had to resort to bankruptcy. It was not a cakewalk. I was jobless for about an yr and with no way out I had to do it. Its very easy to say GIVE ME A BREAK!! when you are not in it.
I am not asking for a handout or charity donation for that condescending remark.
- wetdawgs
- Contributions:26781
Although you will be closing the loan 2 months after you've completed the program, the builder is likely to want pre-approval before you can sign on the dotted line for the lot. This will occur before you get to the end of the bankruptcy period, so yes, strengthen things by getting approval from the court.
- Brad Dragoo, "braddragoo"
- Contributions:3
Archie,
A Chapter 13 Bankruptcy does not disqualify a borrower from obtaining FHA financing. You must have completed 1 year of payments to the trustee, never late. You must recieve written permission from the court to enter into the mortgage transaction.
The only other thing you need to know is that with this loan, you will not be able to receive automated underwriting (most lenders prefer the loan to be approved from an automated system first). Your loan will have to be manually underwritten which just means the Underwriter will ask for more documentation to verify your ability and willingness to repay the loan. As far as purchasing a new home, you should get lender approval prior to the builder starting the construction. Good Luck.
A Chapter 13 Bankruptcy does not disqualify a borrower from obtaining FHA financing. You must have completed 1 year of payments to the trustee, never late. You must recieve written permission from the court to enter into the mortgage transaction.
The only other thing you need to know is that with this loan, you will not be able to receive automated underwriting (most lenders prefer the loan to be approved from an automated system first). Your loan will have to be manually underwritten which just means the Underwriter will ask for more documentation to verify your ability and willingness to repay the loan. As far as purchasing a new home, you should get lender approval prior to the builder starting the construction. Good Luck.
- Andy Holloman, "MortgageRaleigh"
- Contributions:7
archie - i agree with andrew's comments below, you have a difficult situation but it should be do-able because you have been in your chapt. 13 plan long enough....you have the appropriate credit score... if you don't have any other issues, FHA will be an option .....a
- bmbutler
- Contributions:24
You filed bankruptcy to wipe away debt, and then you except a lender to turn around and loan you probably the largest amount of money you will ever borrow? GIVE ME A BREAK! Sorry, but I get so tired of people in or just out of bankruptcy excepting lenders (no matter who they are) to give them money and upset that they don't!
- archie1610
- Contributions:31
Andrew, I am looking for a new construction. I will be selecting a lot now and the house will be ready in July 2011. That is 2 months after my bankruptcy.Do I need to ask permission from the court.
Will I still be eligible for Mortgage after Chapter 13. Or shud I wait for 2 yrs after that?
- Andrew Adams, "203K Specialist"
- Contributions:9349
Ken the two year rule applies to the Total Scorescorecard and if the lender will mannually underwrite the file it can be done prior to discharge.
- Andrew Adams, "203K Specialist"
- Contributions:9349
You will need to get written permission from the court to obtain FHA financing and you will need to find a lender that does not have an overlay to FHA guidelines.
I woudl guess the person you spoke to at Wells didn't know the difference between a Chapter 7 and Chapter 13!
- Ken Kopper
- Contributions:1578
Archie, the seasoning requirement for Ch13 is being affected b/c you are still in the plan. In order to qualify here for FHA, you will need to have either finished the plan or pay the plan off AND the filing date of the CH13 must at be 12 months ago with zero delinquency to the trustee or other creditors from the time of the filing for the 13.
Wells Fargo says no to Chapter 13 FHA Loan??Why??
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