Qualifying For FHA Loan After Chapter 13 Bankruptcy Discharge
Is There A Waiting Period To Qualify For FHA Loan After Chapter 13 Bankruptcy Discharge
I have many home buyers who have just gotten their Chapter 13 Bankruptcy discharged after being going through the Chapter 13 Bankruptcy repayment plan for the past several years and apply for a FHA Loan with a mortgage lender to be told that they do not qualify because there is a two year mandatory waiting period after a Chapter 13 Bankruptcy discharge. Many home buyers who apply for FHA Loan After Chapter 13 Bankruptcy Discharge are told by banks, credit unions, and mortgage lenders that they cannot qualify for a FHA Loan unless they meet the 2 year waiting period. This is absolutely not true under FHA Guidelines to qualify for FHA Loan After Chapter 13 Bankruptcy Discharge. The reason why so many mortgage lenders deny FHA mortgage loan borrowers who apply for FHA Loan After Chapter 13 Bankruptcy Discharge is because they have their own set of lending guidelines called lender overlays . FHA mortgage lender overlays are FHA mortgage lending requirements that are above and beyond the minimum FHA mortgage lending guidelines where each mortgage lender can require. For example, to qualify for a 3.5% down payment FHA Loan, the minimum credit scores required by the FHA mortgage loan applicant is 580 FICO. However, most banks will not approve and qualify a FHA mortgage loan borrower who does not have at least a 640 FICO credit score. The higher FHA mortgage lending standards is called the mortgage lender overlays. Mortgage lenders are not required to just go off the minimum FHA mortgage lending guidelines and can impose and implement tougher credit requirements. Under FHA mortgage lending guidelines, there are no waiting period requirements to qualify for a FHA Loan After Chapter 13 Bankruptcy Discharge. A home buyer can qualify for a FHA Loan one day after being discharged of their Chapter 13 Bankruptcy.
FHA Loan After Chapter 13 Bankruptcy Discharge: Waiting Period Versus No Waiting Period After Discharge Date
Under 2016 FHA Guidelines there are no mandatory waiting period to qualify for FHA Loan After Chapter 13 Bankruptcy Discharge. FHA mortgage loan borrowers who are told that they do not qualify for a FHA Loan After Chapter 13 Bankruptcy Discharge by banks and other mortgage companies are because each individual bank and mortgage lender can set their own mortgage lender overlays and set a mandatory waiting period after a Chapter 13 Bankruptcy discharge which is called mortgage lender overlays. Mortgage lenders, such as myself, who do not have mortgage lender overlays do not require any waiting period to qualify for FHA Loan After Chapter 13 Bankruptcy Discharge. However, all FHA Loan After Chapter 13 Bankruptcy Discharge underwriting are manual underwriting . All manual underwriting mortgage loans require verification of rent which can only be valid by the renter providing 12 months of canceled checks and/or 12 months bank statements that show that the rental payments have been taken out of the renter’s bank account and transferred to the landlord’s bank account. For renters who have been renting from a property management company, canceled checks and/or bank statements are not required and a VOR, verification of rent is the only thing that is required which is a form provided by the mortgage lender and completed by the property management representative certifying that the tenant has been timely on all of his and/or her monthly rental payments for the past 12 months.
FHA Loan After Chapter 13 Bankruptcy Discharge: Other Requirements
If you have been told that you do not qualify for a FHA Loan After Chapter 13 Bankruptcy Discharge by a bank or other mortgage lender, please contact me at 262-716-8151 or email me at firstname.lastname@example.org. I specialize in helping mortgage loan borrowers who just got their Chapter 13 Bankruptcy discharged and need to qualify for a FHA Loan. We have no lender overlays and do manual underwrites. If you had a Chapter 13 Bankruptcy Discharge, do not be late on any monthly minimum payments and do not have any bank overdrafts in the past 60 days. Again, please do not hesitate to contact me anytime, 7 days a week, weekends, evenings, and holidays if you have any questions.