I have difficult to find FHA lender in Southern California due to my chapter 7 case, discharge January 2011.

Asked by dcrealty, Los Angeles, CA Wed Jan 16, 2013

FHA guideline for Chapter 7, two years after discharged, but most big lender not issue the loan. I had been ask five top bank agent, no luck. Anybody know any lender will issue the loan, I already built up my credit to 670.

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billyart, , Los Angeles, CA
Wed Jan 16, 2013
BEST ANSWER
I am an FHA lender in Los Angeles County - 640 credit score will do it- gettnig a loan with a Chapter 7 BK's will depend on the circumstances-FHA 2 years- strength of current financials-income and job history help. iServe Residential Lending 213-840-7651 Bill Sherwood " Certified NHEC Credit Expert"
0 votes
, ,
Wed Jan 16, 2013
Hi dcrealty. The reason you may be having a tough time finding a lender right now is that the credit report is reading that your BK was discharged in January of 2011 - it doesn't know if it was January 1st or January 31st. So during this month when they run the credit report, and the automated underwriting approval, it will come back with a decision saying "Refer", meaning the loan has to be referred to a human being underwrite to approve it rather than being approved through the automated underwriting system. So while technically you may be past the 2 year mark that FHA requires on a Ch 7 BK, the way the credit reporting & automated underwriting systems are set up, it won't recognize that until February 1st. I am helping another client now who was in a similar position, their Ch 7 BK was discharged in 12/2010, so we had to wait until January 1st to check credit & run the automated underwriting approval and everything turned out fine. Most loan officers don't realize that, so they will try to get an approval now and they'll get a "Refer" response, not realizing what the issue is. If you'd like I'd be happy to review your situation now to make sure your debt to income ratios would be OK, but we would want to wait to check credit until February 1st.

Shane Milne | Lending in all 50 states | NMLS #81195
2 votes
Roy Bush, Both Buyer And Seller, Phoenix, AZ
Sun Aug 4, 2013
I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. I introduced a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
0 votes
, ,
Wed Jan 16, 2013
Hi FHA Buyer, You should be able to purchase again, you just need a Loan officer to take care of this for you. I can help with this so give me a call or email if you would like.

http://www.mwfav.com

gabriella.godde@mwfinc.com

Cell 661-713-3460 Office 661-949-0260
0 votes
Michael Abram, , Los Angeles, CA
Wed Jan 16, 2013
Hello,

You need at least 2 years seasoned from the date of discharge on the Chapter 7 BK to qualify FHA. I know a portfolio lender that will consider exceptions, but it requires a minimum loan of 300K and a purchase price no less than 600K.

Best of luck to you.

Michael Abram
RPM | Los Angeles
Cell: (310) 995-0975
mabram@rpm-mtg.com
http://www.rpm-mtg.com/mabram
0 votes
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