This ARTICLE Is Abou5 Buying House During Chapter 13 Repayment Plan Mortgage Guidelines

Buying House During Chapter 13 Repayment Plan is allowed only with FHA and VA loans. Borrowers can qualify for FHA and VA loans without the Chapter 13 Bankruptcy is discharged. FHA and VA are the only two mortgage loan programs that allow homebuyers to qualify for a mortgage. All other loan programs require Chapter 13 Bankruptcy to be discharged.

HUD and the VA are the only two federal agencies that allow borrowers to qualify for a mortgage during the repayment of their Chapter 13 Bankruptcy. Trustee approval is required. Bankruptcy Trustees will approve a home mortgage during the Chapter 13 repayment period unless the home is a high end home and above the borrower’s means. Timely payments to the trustee are required. Borrowers need to be timely on all of their monthly debt payments to both inside the bankruptcy and outside of the Chapter 13 bankruptcy.

When Can Borrowers Qualify For A Mortgage After Filing Chapter 13 Bankruptcy

In order to qualify for an FHA and/or VA loan during the Chapter 13 Bankruptcy repayment period, the borrower needs to be in the payment plan for at least 12 months:

• All FHA and VA loans during Chapter 13 Repayment Period are manual underwrites
• Not all lenders do manual underwriting on FHA and/or VA loans
• The good news is Gustan Cho Associates Mortgage Group are experts in VA and FHA manual underwriting
• A large percentage of our borrowers are folks who are in a current active Chapter 13 Bankruptcy Repayment Plans
• Gustan Cho Associates has no lender overlays on government and conventional loans

In this article, we will discuss and cover the Buying House During Chapter 13 Repayment Plan Mortgage Guidelines.

Buying House During Chapter 13 Repayment Plan Mortgage Guidelines On FHA Loans

HUD, the parent of FHA allows borrowers to qualify for an FHA loan during the Chapter 13 Repayment Period. Chapter 13 Bankruptcy does not have to be discharged. Borrowers need to meet all HUD Guidelines to qualify for an FHA loan. However, all Chapter 13 FHA loans are manual underwriting. There is no waiting period after the Chapter 13 Bankruptcy discharged date. However, if the discharge is not seasoned for at least two years, it needs to be a manual underwrite. All HUD Manual Underwriting Guidelines apply.

Here are the minimum FHA Chapter 13 Bankruptcy Guidelines:

• To qualify for a 3.5% down payment FHA loan, the minimum credit score required by HUD is 580 FICO
• HUD manual underwriting guidelines apply
• Verification of rent on all manual underwriting
• The great news at Gustan Cho Associates is if the borrowers do not have verification of rent, the borrower can get us living with the family rent-free letter in lieu of a VOR
• Chapter 13 Bankruptcy does not have to be discharged
• The bankruptcy trustee needs to approve the home purchase and/or refinance mortgage transaction
• Need to be in the Chapter 13 repayment period for at least 12 months
• No late payments during the Chapter 13 repayment period to the trustee and outside creditors outside the bankruptcy

Gustan Cho Associates are experts in helping homebuyers qualify for a mortgage during the Chapter 13 Bankruptcy repayment period.

Buying House During Chapter 13 Repayment Plan VA Mortgage Guidelines

Buying House During Chapter 13 Repayment Plan Mortgage Guidelines are exactly the same as those for FHA loans. However, not everyone qualifies for a VA loan. Only eligible borrowers who have a valid certificate of eligibility can qualify for a VA loan. VA loans are the best loan program for owner-occupant homes. The VA has the lowest mortgage rates out of any other loan program. One of the greatest benefits of VA loans is there is no mortgage insurance. A large percentage of our borrowers at Gustan Cho Associates are those applying for VA loans. The team at Gustan Cho Associates will help borrowers obtain their certificate of eligibility. There are no maximum loan limits on VA loans.

Minimum VA Agency Guidelines

Here are the minimum VA loan requirements:

• 100% financing with no down payment required
• There is no minimum credit score requirement on VA loans with an approve/eligible per automated underwriting system (AUS)
• There is no maximum debt to income ratio caps with an AUS Approval
• There is no maximum loan limit on VA loans

There is no mortgage insurance required on VA loans.

Qualifying For A VA Loans With A National Mortgage Company With No Lender Overlays

Being able to qualify for VA loans is one of the greatest rewards and benefits that is given by the U.S. Veterans Administration as a thank you to our members of the U.S. Military. A certificate of eligibility (COE) is priceless. VA mortgage rates are the lowest of any other loan program. Over 75% of our borrowers at Gustan Cho Associates are folks who could not qualify at other lenders due to lender overlays. Gustan Cho Associates is one of the very few national mortgage lenders with no lender overlays on government and conventional loans.  Over 30% of our borrowers are manual underwriting files. To qualify for a home loan with a five-star national mortgage company licensed in multiple states, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.