Ch13 Dismissal, Refinance Possibilities

A dismissal is where you ask the court to cancel the Bankruptcy. A discharge is where you finish the payment plan and the trustee pays to the creditors their proportionate share of the plan payments as determined by the court and then the court discharges (finalizes) the bankruptcy plan and closes the bankruptcy case. After 36 months in the plan, if you actually asked the court to dismiss the bankruptcy, then you are going to have to wait two years (at a minimum) in order to be eligible for a conforming loan, HARP or otherwise. If it was discharged, then FHA would allow you to finance after 12 months in the plan, but since you cancelled the plan, you are still going to have to wait two years. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

FHA will allow a loan 1 year after a Chpter 13 with good established credit. Talk to a Lender411 loan officer to help with your situation and keep in mind that not all investors will accept the minimum FHA guidelines. If told no then look for another lender. Good Luck.

Ch13 dismissal in July 12 - need July 13 to be able to go FHA, however, is this a 2nd home or investor home -- if it's not owner occ changes rules? as you mentioned that your "current mtg" means to me you live elsewhere. My suggestion, call current lender and ask if they can lower your rate my best advise for now. Virginia @Geneva Financial, LLC

If your appraisal does come in at $150,000 your maximum loan amount will be $120,000. (80% of your loan amount) You will not be able to borrow above this 80% because your credit score is too low for Private Mortgage Insurance Underwriting Guidelines. This means it is likely that you will have to cover some of the closing costs, pre-paids, escrow. Johnson Bank can roll some of the costs into the rate and we don't have to collect escrow funds up front already sitting at your current lender which will help keep out of pocket money lower. The loan approval will rely on other factors such as debt ratios (you income in comparison to your monthly debt) and reserve accounts (how many monthly payments you would be able to make with your current assets if your income would dissapear) and other credit considerations (What type of existing obligations you have and how much). If you apply for a loan I would be able to give you a definitive answer within 24 hours. You can apply at johnsonbankmortgage.com/yjenkins. Yvette Jenkins, Johnson Bank, NMLS ID 455918

FHA may be your best choice.

On Conventional and HARP loans a Chapter 13 waiting period is 2 years after the discharge date, but 4 years from dismissal date unless the bankruptcy was filed due to extenuating circumstances such as a major health crisis, loss of job, etc., which have to be well documented.FHA does not have a waiting period requirement for dismissals, however once again we would need good documentation from the bankruptcy trustee as to the dates of filing and dismissal and that no other bankruptcies had been filed afterward. It sounds like you've worked hard to reestablish a good credit rating. I would say let's take a look at the full scenario and see if we can get an approval. Give me a call at 801-971-7916. Best regards,Cory

Yvette has give a very accurate answer.

You can go with FHA providing the lender you choose does not have an overlay requiring 1 year + from dismissal date. We offer rsate and term Fha refinance down to 600 credit score 1 day from dismissal or discharge. There are other compensating factors required. If yoo are in New Jersey get in touch with me @ 908-516-2190 Ext. 301 or carlos@keypointmtg.com