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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,
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,
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%.
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....
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.
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.
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.
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.
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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.
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....
