Home Buying in Chicago>Question Details

Fournee, Home Buyer in Chicago, IL

I need a mortgage, final payment on chapter 13 posted June 13th. Will FHA finance me?

Asked by Fournee, Chicago, IL Mon Jun 30, 2014

Hello everyone. My 36 months of chapter 13 payments ended on the 13th of June. I am now waiting for discharge. I am in the process of house hunting. My rent is going to be almost 1500.00. I want this to go towards a home. I was informed that while I was in an active bankruptcy I could have qualified for a mortgage. But now that I will soon be discharged, I have to wait 1 year. My scores are in the mid 600's. Income is approx 60,000. Did I miss my chance for getting a loan during my bk13? Can anyone approve me for a FHA loan?

Help the community by answering this question:


Good Morning,

One year must have passed since the discharge of your chapter 13 bankruptcy to qualify for FHA financing. Also, you must have established a credit history of at least 12 months since the bankruptcy. You are best to meet with a mortgage lender who can look at your situation and determine if you can qualify for FHA financing and if so, how much you can get preapproved for.

I give a free consultation where I review your credit, income & assets to determine if you would qualify. If you do not qualify, I will be able to show you what needs to be done to put you in a position to purchase a home as quickly as possible.

Should you have any questions, please contact me at the below phone or email.

Good Luck,

Nick Nelson (NMLS#384413)
Mortgage Lender
Community Bank of Rockford (A Division of Harvard State Bank)
2470 Eastrock Dr
Rockford, IL. 61108
815-289-0880 - Cell
nnelson@thehshb.com - Email
1 vote Thank Flag Link Tue Jul 1, 2014
Also, you must have a perfect payment history since the filing of the Chapter 13. I had a situation with someone where the credit report was showing late payments, although the borrower said that all payments were made on time to the court appointed representative. Until this is straightened out on a credit report, a mortgage cannot be obtained. You have a year, so you should have someone look into this for you, and can possibly get things corrected by then.
1 vote Thank Flag Link Thu Jul 3, 2014
Hello Fournee, For a CH. 13 Bankruptcy, 1 year of the payout must elapse and payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage.

So you should talk to the court and see if you can get permission to enter into a mortgage.

I would be happy to discuss this with you and work with you on getting you into an FHA Mortgage. In IL, if you credit score is above 640, you may qualify for the IHDA Welcome Home IL DPA of $7500.

Many people are finding themselves in this position after the financial hardships many of us faced in the late first decade. FHA is designed for someone like you to get back on your feet and into a home of your own. Give me a call to discuss.

With warm regards,

Mary Kay Laurent
Associate Vice President of Mortgage Lending

o: 773.516.6859 - m: 312.403.4150 - f: 773.328.1740
3940 North Ravenswood , Chicago, IL 60613
NMLS ID: 870598
1 vote Thank Flag Link Thu Jul 3, 2014
Possibly but this is a better questions for a lender to answer. Let me know if you'd like me to refer you a great one.
1 vote Thank Flag Link Wed Jul 2, 2014
Probably not. But speak with a lender. They can put you on programs to help build credit.
1 vote Thank Flag Link Wed Jul 2, 2014
You should talk to a qualified lender. I am happy to refer one to you. Feel free to contact me for more information.

Brian Bleers
Century 21 SGR, Inc.
(630) 414-5373
1 vote Thank Flag Link Tue Jul 1, 2014
Hello Fournee,

I work with a few lenders who may be able to help you. FHA requires that the borrower wait 12 months from the payout period of the CH 13 BK. As long as all payments were made on time and you can get permission from the court to obtain a mortgage, we shouldn't have a problem with your BK. Please let me know if you have any additional questions or if you would like to get started with a free professional assessment.

Thank you,

Ashley Pimentel
Mortgage Consultant
Market Place Mortgage
0 votes Thank Flag Link Thu Jul 10, 2014
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