FHA Chapter 13 Guidelines in Wyoming to Buy and Refinance

In this article, we will cover and discuss the FHA Chapter 13 Guidelines in Wyoming to buy a home or do a refinance during the Chapter 13 repayment plan. With the surging values of homes in Wyoming, the FHA Chapter 13 Guidelines in Wyoming enable potential homebuyers to be able to purchase a home while in the Chapter 13 repayment plan. Most Chapter 13 repayment plan is for 60 months which is five years. Five years is a long time to be priced out of the housing market in Wyoming.

FHA Chapter 13 Guidelines in Wyoming on How Soon Can You Qualify To Apply for an FHA Loan after Filing Bankruptcy

Most Americans who file Chapter 13 bankruptcy are in a hard chapter of their life. But there is still hope to maintain current mortgage or buying the home of their dreams. Per FHA federal guidelines, homebuyers may enter into an FHA mortgage after 12 on-time payments to the Chapter 13 Bankruptcy Trustee. Feel like you have been told this before? And then tried to obtain a mortgage only to be turned down? This is very common.

Lender Overlays from Lenders Versus FHA Chapter 13 Guidelines in Wyoming

The reason home buyers were turned down is due to lender overlays. Majority of lenders in 2022 do not originate loans for clients who are currently in a Chapter 13 Bankruptcy. The good news the experts at Gustan Cho Associates Mortgage Group are here to help!. We are direct lenders with no mortgage overlays on government and conventional loans and just go off FHA Chapter 13 Guidelines in Wyoming. In this article, we will discuss and cover FHA Chapter 13 Guidelines in Wyoming to Buy and Refinance.

What Are FHA Chapter 13 Guidelines in Wyoming Requirements to While In Chapter 13 Repayment Plan

As stated above borrowers can become eligible to enter an FHA Mortgage once 12 On-Time payments have lapsed. Per HUD CHAPTER 13 Mortgage Guidelines, all borrowers in a Chapter 13 Bankruptcy or who just had a Chapter 13 Bankruptcy discharged and the discharged date is not seasoned for at least two years, it needs to be an FHA Manual Underwrite. FHA Manual Underwriting Guidelines needs to be adhered to:

There are a few more general rules of thumb to follow:

• 12 on-time payments to bankruptcy and ALL OTHER BILLS
• Clean rental history for at least the past 12 months
• Needs to be verifiable from Management company or canceled checks and/or bank statements
• The credit score of at least 580
• 3.5% down payment

One month reserves 1-2 unit properties. One month of reserve is equal to one-month PITI (principal, interest. Taxes, and insurance of TOTAL MORTGAGE PAYMENT). Note 3-4 unit properties require 3 months reserves (PITI).

FHA Chapter 13 Guidelines in Wyoming on Reestablished Credit

Establishing credit after the bankruptcy such as the following:

• a secured credit card helps but is not required

FHA Chapter 13 Guidelines in Wyoming on Debt To Income Ratio

Pass manual underwriting debt to income ratios:

• 500‐579 (and No score) credit score max DTI is 31/43
• 580 and above max DTI is 31/43 with no compensating factors
• 580 and above max DTI is 37/47 with one compensating factor
• 580 and above max DTI is 40/40 with no discretionary debt
• 580 and above max DTI is 40/50 with two compensating factors

Borrowers must also get permission to enter a new mortgage form Chapter 13 Bankruptcy Trustee. Mortgage Borrowers who have shown financial stability since entering their chapter 13 bankruptcy, the trustee is more than likely to grant home buyers permission. It is important that borrowers do not get payment shock. Payment shock is described with home buyers overall monthly housing payment increases substantially. Per HUD Chapter 13 Bankruptcy Mortgage Guidelines, a payment shock of less than 5% is considered a strong compensating factor.

FHA Chapter 13 Guidelines in Wyoming on Refinance While In Chapter 13 Bankruptcy?

The short answer is YES they can. Homeowners who are looking for an FHA cash-out refinance, they must pay the trustee off in full with the transaction.

The bankruptcy trustee more times than not will grant homeowners permission to enter into the cash-out loan assuming there is enough equity to complete the transaction.

This usually will discharge chapter 13 bankruptcy. It allows homeowners to continue to get back on their feet. Homeowners can also re-finance their current mortgage with a rate and term transaction. There must be enough savings to pass the net tangible benefit test with the new FHA Refinance Loan. The loan must make sense after borrowers factor in closing costs for the trustee to sign off on this.

FHA Chapter 13 Guidelines in Wyoming to Purchase and Refinance

Understand the FHA Chapter 13 guidelines in Wyoming to buy a house during or after Chapter 13 and refinance while in or after Chapter 13. Learn about the necessary manual underwriting, monthly payments, trustee approval, credit score, payment history, payment history, credit score, and how Gustan Cho Associates (GCA) helps Wyoming borrowers with no lender overlays.

Why the FHA Chapter 13 Guidelines in Wyoming are Important

For most people, buying or refinancing a home in Wyoming while in Chapter 13 or just emerging from it can be complex. However, with FHA, the process is significantly easier than with other lenders. The difference is in the experience and understanding of the lender in trustee approval, payment-history documentation, and most importantly, **manual underwriting. Borrowers in Wyoming, including those from Cheyenne, Casper, Cody, Rock Springs, Gillette, and Jackson, enjoy a very stable income and low property taxes, thus improving their debt-to-income ratio. With the FHA Chapter 13 guidelines in Wyoming, you can accelerate your home-buying process.

FHA Wyoming Home Purchase Chapter 13: Home Purchase Chapter 13 FHA Wyoming

Home Purchase FHA Chapter 13 Guidelines in Wyoming

Payments That Are Part of the Plan: 12 Consecutive Payments

• Twelve payments of 1\* per are termed as completed.
• According to the FHA, you are eligible only after making more than 12 consecutive payments.

Trustee Endorsement

• The Wyoming bankruptcy trustee has almost always had to accept the new mortgage.
• We help you, along with your lawyer, in making the mortgage request.

FHA Loans are Underwritten Manually

• The FHA loan is only accessible to those with good standing payments for three consecutive years during the Chapter 13.
• These payments, however, are exactly 3 years with no inconsistency.
• Over 30% Payments: The 43% DTI ratios are further supported by compelling reasons.
• These can include larger payments, good credit scores, consistent payments, substantial withdrawal payments, or monthly cash payments.
• Payments: 12 Month Period: Twelve months of good repayment with no outstandings under a mortgage or loan will stand as a strong compensatory rationale for you.
• FICO Score 580+: The minimum down payment required is 3.5\% in this case.
• Credit Scores & Late Payments: No late payment on Chapter 13 plan payments for the last 12 months is critical, but you do not have to perfect your credit.

Buying a House in Wyoming After Chapter 13 Discharge

No FHA Waiting Period After Discharge:

• The FHA’s policy has no waiting period after the discharge of a Chapter 13 bankruptcy.
• If the discharge is less than 2 years old, the file usually requires manual underwriting.
• If 2+ years have passed since the discharge, and you meet automated findings, you may qualify for standard underwriting.

Re-established Credit & Clean History:

• Try to maintain no new derogatory discharges to boost your credit score.
• That, combined with Wyoming’s low living costs, helps you keep your debt-to-income ratio in check.

FHA Chapter 13 Refinance in Wyoming: Streamline Your Budget

Refinancing During an Active Chapter 13

• 12 On-Time Payments + Trustee OK:Refinancing during Chapter 13 is permissible (typically of the rate-and-term type) after 12 timely plan payments with trustee approval.
• Purpose of Refinance: The purpose of the loan is to simplify your budget and reduce expenses while you finish your plan.
• Types of Manual Underwriting:Much like purchases during Chapter 13, active-plan refinances are typically manually underwritten.
• Documentation of income stability, reserves, and a history of available rental properties should be expected.

Refinancing After a Chapter 13 Discharge

No FHA Waiting Period Post Discharge:

• Directly after discharge, FHA closes the waiting period on a borrower and allows immediate eligibility (still requires underwriting).
• Options for FHA Streamline Refinancing. As long as you have met the criteria for a streamline, you can qualify for an FHA Streamline Refinancing, which requires little to no appraisal and usually less documentation, if you have an FHA loan.
• Cash-Out After Chapter 13:Cash-out refinancing requires greater equity and credit. Strategy on seasoning, LTV limits, and other factors should be discussed with GCA.

Important Underwriting Pillars for Wyoming FHA Chapter 13 Loans

Stable Income, Employment, and Employment History

Most underwriters focus on stable income with a reasonable chance of continuation. Workers from Wyoming in the energy sector, ranching, healthcare, education, construction, maintenance, and tourism should be able to provide consistent income documentation through W-2 forms, employee pay stubs, tax returns for self-employed individuals, and P&L statements for the current year, as well as other relevant documents.

Debt-to-Income (DTI) Ratios on Manual Underwrites

• Common Caps: Usually 31/43, 37/47, as high as 40/50 with supporting factors.
• Supporting Factors: Verified rent history, cash reserves, increment payments, equity, no payment shock, strong residual income, and more.

Credit Profile & Re-established Credit

• On-Time Payment Trend: For Chapter 13 plan payments and housing payments, the most important consideration is a clean 12-month history.
• New credit after filing: New credit is best kept limited and paid on time.
• New collections and late payments should be avoided.
• Scores: GCA assists credit-challenged borrowers, including those with credit scores below 620, through manual underwriting and compensating factors.

Property, Appraisal, and Other Wyoming Specific Considerations

• FHA Appraisal & Safety: The property must comply with the FHA’s minimum property standards.
• Roof, foundation, utilities, and safety items are in good order.
• Rural and Mountain Markets: Wyoming’s geography can restrict comps.
• Team up with a lender and a Realtor who understands rural valuation and seasonal access problems.
• County Loan Limits: FHA Loan limits vary by county and are updated annually.
• Check current FHA loan limits for Wyoming counties (Teton County is often higher; many rural counties follow the base limit).

Step-by-Step Process on How to Buy or Refinance an FHA Loan During or After Chapter 13 in Wyoming

Quick Discovery Call with GCA

Review your current situation in Chapter 13 and consider additional factors, such as credit history, payment history, income, housing situation, and goals (including whether to purchase or refinance).

Pre-Underwrite Your File

• We analyze your manual-underwrite DTI and compensating factors.
• We also had a conversation about the work done on the down payment and other reserves.

Trustee Coordination (If Still in Chapter 13)

• We assist you and your attorney in filing the Trustee Approval Request, during which we complete the necessary forms (requesting purchase or refinance approval).

Full Application and Documentation

• Required documents regarding income, rent, bankruptcy payment history, and additional letters of explanation.

Appraisal and Conditions

• Any property repairs and the FHA appraisal (if necessary) are addressed early in the process to ensure a timely closing.

Clear to Close

• The Wyoming home you wish to purchase or refinance can be done so with confidence as you obtain the final approval, closing disclosures, and funding.

Common Scenarios We See In Wyoming (and Solutions)

I’m 18 months in my Chapter 13 and rent in Cheyenne. Can I buy?

• Yes.
• With 12+ on-time plan payments and with trustee approval, you can pursue FHA purchases with manual underwriting.
• We will verify your rent, document your income, and work on your DTI.

My Chapter 13 case was closed last month. Do I have to wait?

• The FHA has no required minimum waiting time for borrowers following a Chapter 13 bankruptcy.
• If you are waiting to get under 2 years, you are likely to receive a manual underwrite, which GCA conducts daily.

I already have an FHA mortgage loan, and I would like to reduce my monthly payment.

• Inquire about FHA Streamline Refinance options if you have already been discharged.
• If you are still in the plan, a rate and term refinance may be done with the trustee’s approval.

What Are Some Good Titles for an FHA Chapter 13 Wyoming Guide?

• How to Navigate Wyoming’s FHA Chapter 13 Guidelines and Regulations for Home Buyers.

FHA Wyoming Manual Underwriting Guidelines DTI Caps Compensating Factors VOR

• FHA Chapter 13 Wyoming Refinance Guidelines Under Active Plan and Post-Discharge.

FHA Wyoming Manual Underwriting Guidelines DTI Caps Compensating Factors VOR

• Chapter 13 Wyoming Refinance Guidelines Under Active Plan and Post Discharged.

Frequently Asked Questions: FHA Chapter 13 Guidelines Wyoming

Can I Buy Real Estate in Wyoming While I Am in Chapter 13?

• Yes.
• FHA allows a purchase after 12 months of payments under a trust deed with manual underwriting.

Do I Need To Pay a Large Down Payment For an FHA Loan During Chapter 13?

• Not necessarily.
• If you have a credit score of 580 or higher, a down payment as low as 3.5% may be required.
• If the score is lower than 580, a larger down payment is required.

What Is The DTI Requirement to Obtain an FHA Loan During Chapter 13 Bankruptcy in Wyoming?

• With manual underwriting, many approvals are around 31% to 43%, with 40% to 50% for good compensating factors.
• We will tailor your file to fit your needs.

Is There an Enforced Waiting Period After My Chapter 13 is Discharged?

• The FHA does not have a waiting period after Chapter 13 is discharged.
• If it has been 2 years since then, manual underwriting is common.

Can I Refinance My FHA Loan If I Am Still Under Chapter 13?

• The answer is often yes, typically for rate and term refinance.
• If you have 12 on-time plan payments and approach the manual underwriter with trustee approval, yes.

What If I Want to Cash Out After Chapter 13?

• Cash out is possible if you have sufficient equity, good credit, and meet standard FHA LTV guidelines.
• We will be happy to discuss the timing and your options.

Does a Trustee For Wyoming Need To Approve a Home Purchase or Refinance?

• If you are still in the plan, then the answer is yes.
• GCA will assist with the approval, working closely with your attorney.

After Filing Chapter 13, Is There a Need For Perfect Credit?

• No.
• Concentrate on a 12-month “clean payment history.
• New derogatory credit is a loss.
• Let GCA help you enhance your credit profile.

What is The Difference For Manual Underwriters In Wyoming?

• Manual underwriters examine the overall picture, including income stability, rent history, payment reserves, and payment history.
• This works well in Wyoming.

Does Every County in Wyoming Have The Same FHA Loan Limit?

• No.
• Every county has its own limit, which changes annually.
• GCA will check your county limit for county pre-approval.

At What Age Is It Necessary To Have an Appraisal In Wyoming?

• For purchases, Yes.
• For refinancing, if you qualify for a Streamline refinance, you may not need an appraisal; however, if you qualify for a rate-and-term or cash-out refinance, you usually do.

What’s The Quickest You Have Ever Closed in Chapter 13?

• It depends on trustee approval, the time required to obtain an appraisal, and the number of documents.
• GCA utilizes a fast-track closing process once all necessary approvals are in place.

What if I Pay With a Money Order, or do a Month’s rent?

• We Offer Reliable Solutions for Rent Verification with Third-Party Documents and Other Alternatives.

Can Someone Use Chapter 13 in Wyoming To Make a Down Payment Assistance?

• Some programs allow it.
• Availability and overlays vary.
• GCA will try to find the best Fit for manual underwrites.

Why Work With Gustan Cho Associates For FHA Chapter 13 in Wyoming?

• Gustan Cho Associates Cho offers the main benefits of Chapter 13.
• No lender overlays, deep manual underwriting expertise, and hands-on trustee coordination.

Get Pre-Approved the Right Way — GCA Makes It Simple

GCA Forums and Gustan Cho Associates’ hard files deserve real solutions. Suppose you are in Chapter 13 bankruptcy actively, or have been newly discharged. In that case, we will work with you to obtain approval and help you achieve homeownership or a smarter refinance through the GCA Forums, a Wyoming-style approach.

Ready to start?

Call Gustan Cho Associates at 800-900-8569 or through GCA Forums. We are ready to help you plan your Wyoming FHA Chapter 13 Bankruptcy.

The Team at Gustan Cho Associates are Experts on FHA Chapter 13 Guidelines in Wyoming

Reach out to the FHA mortgage bankruptcy experts at Gustan Cho Associates Mortgage Group. We are available seven days a week at 800-900-8569 or text us for a faster response. Or email us at Gustan Cho Associates at gcho@gustancho.com.

The experts at Gustan Cho Associates Mortgage Group also have a full portfolio of Non-QM loans available for borrowers who find themselves in tough situations.

Even one day out of foreclosure, short sale, deed in lieu, there are loan programs available. Start your mortgage application today and let the experts find the best loan product for you. Over 80% of our borrowers are folks who could not qualify for mortgages at other lenders due to their lender overlays. Gustan Cho Associates has zero mortgage overlays on government and conventional loans.