Financing in Sacramento>Question Details

KJ, Home Buyer in Walnut Creek, CA

It may be time for me to refinance. BK discharge March of 2010 500k 50% LTV 4 years from discharge to apply or fund?

Asked by KJ, Walnut Creek, CA Wed Nov 20, 2013

Help the community by answering this question:



With RPM, for Chapter 7 BK's, there is a 4-year waiting period from date of discharge or dismissal.

For a Chapter 13 BK, there is a 2-year waiting period from discharge and 4 years from dismissal.

If your property is in Walnut Creek and not Sacramento, then your jumbo-conforming loan limit would be $625,500 and your transaction would be considered conventional/conforming and not traditional jumbo.

We are headquartered in Alamo, so let us know if we can assist.

Rob Spinosa
0 votes Thank Flag Link Wed Nov 20, 2013
I know and work with some Conventional lenders that don't require a four year wait period after a BK. Some don't have any wait period if you meet their guidelines. 50% LTV is more than good enough to meet one of them, the others being income/debt ratio and reserve requirements.

Would you mind telling us what your current rate and payment is? Or are you looking for cash/debt consolidation as well? That will help us tell if there is anything out there that can benefit you right now.

Thanks for the opportunity to discuss your options, KJ.


Senior Loan Consultant - 17 Years Experience
0 votes Thank Flag Link Wed Nov 20, 2013
Do it, especially if you are going to save more than 2% on your interest rate. Don't let all of the other factors confuse you, just go talk to a couple of lenders and see who can get you the best deal.

J.R. Thrasher
0 votes Thank Flag Link Wed Nov 20, 2013
Conventional financing requires 4 years from the date of discharge before you can apply. So it looks like you'll need to wait about 4 more months to get started. Please be aware that the conforming loan limit in Sacramento is $474,950 so you may need to pay the balance down a bit.

You should be able to FHA now. The downside to that is that you will have PMI on that loan regardless of the LTV and also you will pay a 1.75% funding fee.

My advice is to hold off until you can go conventional or even jumbo. Even if the rate is higher than FHA, the rate difference will be offset by a lack of MI.

Feel free to give me a call and we can review your options and set up a game plan.


Tony Grech | Mortgage Loan Originator | NMLS 977416
PMAC Lending Services, Inc.
Toll-free (855) 642-4762 | Fax (248) 945-4842 | Direct (248) 728-0078
0 votes Thank Flag Link Wed Nov 20, 2013

With that LTV some lenders will make an exception on the time.

I am no longer a loan officer myself, I am a trainer and consultant.

Here is the name and number of the Loan Officer I would recommend.

Glenn Olsson

He will be able to answer all your questions.

Thank you,

Jamie Collins
0 votes Thank Flag Link Wed Nov 20, 2013
Yes there is a possibility that you can refinance into a conventional, actually only two possibilities.

Alex Greer
Loan Officer
NMLS #1056079

0 votes Thank Flag Link Wed Nov 20, 2013
Good morning KJ! If your loan is (by chance) an FHA then we could do it right now. FHA Streamline refi only requires 12 month wait after BK. What is your current interest rate and is it fixed?
0 votes Thank Flag Link Wed Nov 20, 2013
Sorry not FHA
Flag Wed Nov 20, 2013
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