Construction loan after chapter 7?
I have a two year old chapter 7 that was due to a serious illness that caused me to have to work reduced hours and that led to the inability to pay my bills. We filed proactively and never had a late payment before, during or since bankruptcy. I have a current mortgage (never been late, even before and through bankruptcy). Annual combined income is $160,000 and DTI is currently at about 12% excluding my current mortgage. Credit score is between 680-700. Same job for 14 years. Just wondering if we might be able to obtain a construction loan for land and new build? Or should we wait a while longer? We could potentially put 20% down with the equity from sale of current house. Thanks! by kelley937765 from , California. Jul 2nd 2020
Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 2,431 contributions
Unfortunately, I am unable to locate a lender that will lend to you in your current credit circumstances. Construction loans are underwritten using conventional loan underwriting, with additional requirements. You will need to wait until your Bankruptcy has seasoned, which is 4 years and one day from the date of discharge of a chapter 7 bankruptcy. You will also need to have re-established a good payment history on several accounts post discharge and clean up any bad or erroneous reporting on your credit report getting your score to at least a 680 middle FICO score. You have two years to do this, so unless you have already started repairing your credit, get started ASAP. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We got you covered. NEXA Mortgage is licensed in 46 states ~ www.ApplyYes.com 480-889-9000
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