U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 08-29-2011, 11:19 AM
 
Location: Deep in the heart of Texas
1,917 posts, read 6,058,540 times
Reputation: 1942

Advertisements

Hi everyone
Some background first
Ch.7 bankruptcy discharged last October (90% medical bills, lots of health issues in the past)
Credit Score around 645
VERY solid work history
I am saving up around $12K to put down towards a new home to buy around July of next year.
What is the required credit score for FHA?
I only have a small credit card balance $300/$600 limit no other debt save for student loans all current.
I have some time to continue to build up my credit score, yes?
I am thinking of buying a home in the range of $250K in my name only since my husband is self employed and we think that in my name we'll qualify with a $70k a year income on my own.
We live in Texas. Do you think I'll qualify thru a credit union if I open an account now and just start putting in $1000-1200 per month into that account then apply for a mortgage thru them using that same money?
Thanks in advance,
Reply With Quote Quick reply to this message

 
Old 08-30-2011, 02:47 PM
 
576 posts, read 809,753 times
Reputation: 608
Quote:
Originally Posted by CTR36 View Post
Hi everyone
Some background first
Ch.7 bankruptcy discharged last October (90% medical bills, lots of health issues in the past)
Credit Score around 645
VERY solid work history
I am saving up around $12K to put down towards a new home to buy around July of next year.
What is the required credit score for FHA?
I only have a small credit card balance $300/$600 limit no other debt save for student loans all current.
I have some time to continue to build up my credit score, yes?
I am thinking of buying a home in the range of $250K in my name only since my husband is self employed and we think that in my name we'll qualify with a $70k a year income on my own.
We live in Texas. Do you think I'll qualify thru a credit union if I open an account now and just start putting in $1000-1200 per month into that account then apply for a mortgage thru them using that same money?
Thanks in advance,
What is the balance of your student loan?
Reply With Quote Quick reply to this message
 
Old 08-31-2011, 07:47 PM
 
Location: Long Island (chief in S Farmingdale)
17,921 posts, read 13,507,071 times
Reputation: 3560
You can qualify for an FHA loan with your credit score, however you will generally need to be two years from the chapter 7 discharge date.
Reply With Quote Quick reply to this message
 
Old 09-03-2011, 08:43 AM
 
Location: Plano, Texas
1,676 posts, read 6,112,064 times
Reputation: 683
Yes. FHA requires 2 years from the ch. 7 discharge date. Minimum scores varies from lender to lender, with most lenders minimum being 620. I know of a few that go to 580.

Until the bankruptcy is discharged for 2 years, you really have no chance at a traditional mortgage. You could contact a hard money lender, but the rate would be much higher, you will have to put down a large sum of money,20 to 30%.
Reply With Quote Quick reply to this message
 
Old 09-03-2011, 01:55 PM
 
Location: Deep in the heart of Texas
1,917 posts, read 6,058,540 times
Reputation: 1942
Oh So I can't apply for a loan until October of 2012?! That sucks. Our lease here ends in August. That means we're going to have to go month to month. We really wanted to move during the summer so the kids could be all situated in the new home and they would start the new schools with everyone else. Would 3 months REALLY make that much of a difference? I was planning on applying in July....
Reply With Quote Quick reply to this message
 
Old 09-04-2011, 05:57 PM
 
Location: Plano, Texas
1,676 posts, read 6,112,064 times
Reputation: 683
Quote:
Originally Posted by CTR36 View Post
Oh So I can't apply for a loan until October of 2012?! That sucks. Our lease here ends in August. That means we're going to have to go month to month. We really wanted to move during the summer so the kids could be all situated in the new home and they would start the new schools with everyone else. Would 3 months REALLY make that much of a difference? I was planning on applying in July....

Unfortunately, yes. Required to have 2 years from discharge.
Reply With Quote Quick reply to this message
 
Old 09-05-2011, 02:58 PM
 
Location: Deep in the heart of Texas
1,917 posts, read 6,058,540 times
Reputation: 1942
Sigh. I guess when it's getting close I'll talk to the CU loan person. But if it has to be it has to be.
Reply With Quote Quick reply to this message
 
Old 09-07-2011, 05:33 PM
 
Location: Lending in all 50 states
187 posts, read 672,397 times
Reputation: 109
Quote:
Originally Posted by CTR36 View Post
Oh So I can't apply for a loan until October of 2012?! That sucks. Our lease here ends in August. That means we're going to have to go month to month. We really wanted to move during the summer so the kids could be all situated in the new home and they would start the new schools with everyone else. Would 3 months REALLY make that much of a difference? I was planning on applying in July....

Actually it's 12 months from discharge of a chapter 7 if there were extenuating circumstances (EC) for an FHA loan. It certainly sounds to me like you have EC based on your previous major medical issues and the fact that your bk mainly consisted of medical bills.
Reply With Quote Quick reply to this message
 
Old 09-09-2011, 03:33 PM
 
Location: Deep in the heart of Texas
1,917 posts, read 6,058,540 times
Reputation: 1942
nmb30 yes! All my issues were due to me almost dying due to my medical issues, the my husband's business suffered because of the recession, I had to quit my job due to my medical problems, spiral downward, you get the picture. That was back in 2008. We couldn't keep up with all the medical bills and so we had to file the ch. 7. Like I mentioned before it was discharged last year in October and in fact our schedule of creditors you can see all the creditors are doctors and collections agencies for the medical bills. Some are credit cards which we used to pay for bills due to the job losses. But they were NOT high balances.
Reply With Quote Quick reply to this message
 
Old 09-10-2011, 10:00 PM
 
Location: MID ATLANTIC
7,120 posts, read 16,109,668 times
Reputation: 7075
Ask every loan officer you meet how many extenuating circumstances they have seen to warrant waiver of the 2 year wait and I'm betting we don't have a single one. I've been doing this for over 30 years and only once have I been successful getting an underwriter saying they would work with it. (It was a family of 6 that lost two children the same year due to a congenital heart defect and had racked up over 2M in medical bills). DU, the automated system will not allow for an "approve/eligible" on a BK in under 24 months. So right off the bat, you need someone willing to step to the plate willing to manually underwrite the file - rather rare. I have to agree with the rest in saying be prepared to wait to the very day 2 years after DC.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages

All times are GMT -6.

2005-2017, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 - Top