Thank you for the information ..me and my husband are currently under contract and we are looking for a program that will hep with our down payment and closing cost. We filed chapter 7 two years ago and our Leander is telling us that we will not qualify for any assistance due to our bankruptcy, is this true?
Every program is different with their own rules & requirements but generally I have not seen additional rules/overlays for these programs related to bankruptcies. What state are you purchasing in? What down payment assistance program were you considering? I assume you are using FHA financing for your 1st mortgage?
I’ve ask couple realtors, loan officers about getting a home loan after chapter 13 discharge. They all said I have to wait for at least 2 years. Not easy like you say that we can apply for FHA loan during chapter 13 with only proving 12 month payments on time.
You can apply for a loan anytime. There is no restriction on the application date. Underwriting will require at least 2 years to close. There are a few other factors that will need to be considered including a clear CAIVRS report required by underwriting which could take a bit more time after the 2 years. If we can help you, please feel free to reach out.
The waiting period is separate from the score. Both the minimum score and the waiting period are requirements. Even if you have a high score (800s in your example) you must still wait the full waiting period.
Since we can’t close until two years, is it possible to start looking before? For example, my two year is up in Sept 2023, can I start the process in July to start looking and get a lender etc but just not close until Sept? I know it can take a long time to find a house and get everything together.
Natalia I don't think it would make sense to start looking as homes for sale today will be gone within just a few days or weeks. So anything you would see would not be available for you to purchase when you are ready in a couple of years. You could certainly check out the market to see what type of homes are available but from a true home search perspective I don't think it would make sense. Working with a lender prior to the end of the 2 year waiting period is a great idea. The lender can review your situation and provide guidance on how to improve your situation even better than you may be able to do on your own so you may be able to get even better terms on your mortgage financing when your waiting period is over.
@@wynn-team sorry not july this year lol I mean july 2023 I know its way too early to look now but thank you for the response I really appreciate the feedback hopefully it slows down a little next year
@@nataliaveladez got it...I think planning about 12 months ahead on getting a pre-approval and about 4-6 months ahead for starting your home search would be about right.
When it comes to bankruptcies, foreclosures, etc. strong co-borrowers do not normally help to "offset". Instead you must have met the requirement for the appropriate waiting period. My guess is the bankruptcy was a Chapter 13 bankruptcy?? Can you confirm that's the case. If so, FHA & VA only require a 12 month waiting period after a CH13 discharge or with 12 months of on time payments. In some, very rare, situations you can do a FHA or VA loan with just 12 months time after a Chapter 7 bankruptcy but requires extenuating circumstances.
COVID has impacted many peoples' lives in many ways. Unfortunately, however, COVID (on it's own) is not considered an "extenuating circumstance" that would be considered a "pass". If COVID had an impact on something such as a death of immediately family member or loss (and regained) employment it could be considered "extenuating" (but would be at the discretion of the underwriter). If you are referring to having COVID or the impact COVID had on the economy, you will have to wait the normal waiting period of 1 yr of repayment on CH13 bankruptcy and 2yrs since discharge on a CH7 bankruptcy.
Good info. Ty!
Glad it was helpful!
I want buy home in houston ,Tx after chapter 7, now it's 2 yers ago
How can we help you make it happen?
@@wynn-team its my first time ,wht to do first
Text us “FTHB” at 888-231-2444 with your email address and we will send you a free first time home buyer guide.
@@wynn-team ok
Thanks for your helpful video. 👍
Glad it was helpful!
Thank you for the information ..me and my husband are currently under contract and we are looking for a program that will hep with our down payment and closing cost. We filed chapter 7 two years ago and our Leander is telling us that we will not qualify for any assistance due to our bankruptcy, is this true?
Every program is different with their own rules & requirements but generally I have not seen additional rules/overlays for these programs related to bankruptcies. What state are you purchasing in? What down payment assistance program were you considering? I assume you are using FHA financing for your 1st mortgage?
I’ve ask couple realtors, loan officers about getting a home loan after chapter 13 discharge. They all said I have to wait for at least 2 years. Not easy like you say that we can apply for FHA loan during chapter 13 with only proving 12 month payments on time.
It can be done. Happy to help. We've helped others. What state are you planning your purchase?
12 on time payments and you can definitely purchase a home.
Thank you only video i found that really explained!
Once you hit the 2 year mark are you basically clear to apply the next day or is it more time
You can apply for a loan anytime. There is no restriction on the application date. Underwriting will require at least 2 years to close. There are a few other factors that will need to be considered including a clear CAIVRS report required by underwriting which could take a bit more time after the 2 years. If we can help you, please feel free to reach out.
Is the year wait due to the credit scorebtaking such a big hit after the bankruptcy? What if you can get a credit score close to 800 within in 1 year?
The waiting period is separate from the score. Both the minimum score and the waiting period are requirements. Even if you have a high score (800s in your example) you must still wait the full waiting period.
Since we can’t close until two years, is it possible to start looking before? For example, my two year is up in Sept 2023, can I start the process in July to start looking and get a lender etc but just not close until Sept? I know it can take a long time to find a house and get everything together.
Natalia I don't think it would make sense to start looking as homes for sale today will be gone within just a few days or weeks. So anything you would see would not be available for you to purchase when you are ready in a couple of years. You could certainly check out the market to see what type of homes are available but from a true home search perspective I don't think it would make sense. Working with a lender prior to the end of the 2 year waiting period is a great idea. The lender can review your situation and provide guidance on how to improve your situation even better than you may be able to do on your own so you may be able to get even better terms on your mortgage financing when your waiting period is over.
@@wynn-team sorry not july this year lol I mean july 2023 I know its way too early to look now but thank you for the response I really appreciate the feedback hopefully it slows down a little next year
@@nataliaveladez got it...I think planning about 12 months ahead on getting a pre-approval and about 4-6 months ahead for starting your home search would be about right.
We got a preapproval for a va loan and my bankruptcy is less than a year old... but I have a strong coborrower do you know how this is possible?
When it comes to bankruptcies, foreclosures, etc. strong co-borrowers do not normally help to "offset". Instead you must have met the requirement for the appropriate waiting period. My guess is the bankruptcy was a Chapter 13 bankruptcy?? Can you confirm that's the case. If so, FHA & VA only require a 12 month waiting period after a CH13 discharge or with 12 months of on time payments. In some, very rare, situations you can do a FHA or VA loan with just 12 months time after a Chapter 7 bankruptcy but requires extenuating circumstances.
Is going into bankruptcy because of covide considered a pass to get a fha loan.
COVID has impacted many peoples' lives in many ways. Unfortunately, however, COVID (on it's own) is not considered an "extenuating circumstance" that would be considered a "pass". If COVID had an impact on something such as a death of immediately family member or loss (and regained) employment it could be considered "extenuating" (but would be at the discretion of the underwriter). If you are referring to having COVID or the impact COVID had on the economy, you will have to wait the normal waiting period of 1 yr of repayment on CH13 bankruptcy and 2yrs since discharge on a CH7 bankruptcy.
@@wynn-team, Bullshit.
Or a pandemic