Tag: Chapter 13

FHA – Repeated Bankruptcy: If a client has a Chapter 7 in 2012 and a Chapter 13 that was recently dismissed due to withdraw, will FHA allow this? [Derogatory Credit Wait Periods – All Agencies – Chart]

Answer: The Chapter 7 wait period is well past, and FHA has no mandatory wait periods after a Chapter 13 dismissal, and does not discuss this event at all in their guidelines. That said, prudent underwriting would require a lot of scrutiny on the borrower’s payment history for the last 12-24 months as well as explanations regarding the borrower’s […]

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FHA – Chapter 13 Bankruptcy: Is it possible to do an FHA loan for someone who is still paying on a Chapter 13?

Answer: FHA will allow a borrower who is still repaying a Chapter 13 to obtain a mortgage after they’ve completed at least 12 months of on-time payments and have the court’s permission to obtain the new mortgage. They do also require that the loan be manually underwritten, which means that the transaction will be subject […]

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