Will desktop underwriter deny my fha loan because I have a dismissed chapter 13 just over a year old?

Asked by Jsmith87966, Phoenix, AZ Wed Apr 10, 2013

My lender keeps telling me that DU doesn't deny based on that but is denying based on the comments and or remarks on the credit report that still states accounts in chapter 13 and had me fix the remarks to remove that comment. Will it be approved now? I have been doing everything they have asked for almost 2 months now and still no closer just 2000 dollars poorer with the appraisal and earnest etc

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paul124, Home Buyer, 14212
Tue Oct 29, 2013
Hi Jsmith87966

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Roy Bush, Both Buyer And Seller, Phoenix, AZ
Sun Aug 4, 2013
CFS Mortgage, http://www.cfsflex.com, has a flexible loan program. They allow a mortgage after a foreclosure, short sale, or chapter 7 bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
0 votes
Reginald Opa…, , Phoenix, AZ
Fri Apr 12, 2013
I would like to say once again that yes Du will approve your FHA. Please call when you get a moment today and we can discuss your senario.253-3312-5980 Direct
0 votes
Korene L. Cl…, Mortgage Broker Or Lender, Glendale, AZ
Fri Apr 12, 2013
As a direct lender we do loans while people are in a Chapter 13 BK with the trustee's permission as long as they have made their required payments on time. Therefore a dismissed BK 13 should be do-able with credit and downpayment etc.
Everyone is an individual so we do not cookie cut our clients but we work to get them qualified. I am a Mortgage Banker in metro Phoenix, AZ. I lend in both Arizona and California where I will be pleased to help you. If you or someone you know is looking for financing options, please feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman NMLS # 218520 KLCSLoanTeam.com We are Direct Lenders, WE CLOSE LOANS!
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Reginald Opa…, , Phoenix, AZ
Thu Apr 11, 2013
Your loan will not be denied. Desktop underwriter should approve your loan if you discharged bankruptcy chapter 13
over a year ago. if you need any help dont hesitate to call my cell 253-332-5980 or Office 480-423-6870.
0 votes
Roswell Moore…, Mortgage Broker Or Lender, Scottsdale, AZ
Thu Apr 11, 2013
Hi Jsmith87966,

As long as you don't have any 30 day lates on your credit report and if your Chapter 13 bankruptcy is now over 12 month old, plus you qualify based on your debt-to-income ratio, cash reserves, job history & credit (have at least a 580 credit score for example) you should qualify for an FHA loan.

Please feel free to contact me directly if you have any further questions, I'd be glad to help.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
Scottsdale, AZ 85260

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline refinance loans (NO minimum credit score, NO appraisal required), HARP 2.0 - No Appraisal Required for Refinance for Underwater Home Values, HomePath, Investor Friendly (10 financed properties), VA, VA Refinance loans (NO appraisal required on IRRRL loans), USDA loans, Jumbo loans, Conventional loans, plus, we allow Escrow Hold-Backs!
Web Reference:  http://www.ezAZloan.com
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Gregorio Den…, , San Diego, CA
Thu Apr 11, 2013
Sammy says;
"...as a licensed realtor, this question would be out of my league. ..."
"...you have to wait a minimum of 3 years to buy from the date of your last bk,..."

Sammy, you should have stuck to your first instinct and not answered. You don't need 3 years for a BK 13, you need 12 months.

Here is the guideline direct from HUD.

"A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an
FHA-insured mortgage, provided that the lender documents that
• one year of the pay-out period under the bankruptcy has elapsed
• the borrower’s payment performance has been satisfactory and all required
payments have been made on time, and
• the borrower has received written permission from bankruptcy court to enter
into the mortgage transaction.

TOTAL Scorecard Accept/Approve Recommendation Lender documentation must show two years from the discharge date of a Chapter 13 bankruptcy. If the Chapter 13 bankruptcy has not been discharged for a minimum period of two years, the loan must be downgraded to a Refer and evaluated by a Direct Endorsement (DE) underwriter."

Jsmith, it sounds as if your loan officer doesn't know how to handle this correctly. I suggest you find an experienced FHA LO and ignore what licensed Realtors tell you regardless of how many homes they have purchased.
0 votes
Voices Member, , Phoenix, AZ
Wed Apr 10, 2013
hi jsmith... as a licensed realtor, this question would be out of my league. however, because i pick my loan officer's brain, have purchased 3 homes in my lifetime and am savvy with bk's, foreclosures & modifications, i can say this:

you have to wait a minimum of 3 years to buy from the date of your last bk, foreclosure. i'm pretty much saying the same thing as lowell sterling (the broker before me).

now... you will have to re-establish your credit and that i can help you with. i am a licensed nfcc-certified credit counselor (and also a licensed hud-certified housing counselor) and i did have to re-establish my credit to purchase real estate after 2 foreclosures from 2008/ 2009.

call me if you're interested in what i have to say.

sammy hernandez, realtor
clients first realty, llc
(602) 622.0703 c.
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