FHA Loan After BK7

[Broman]

My wife and I had our BK7 discharged in June 2017, which puts us at June 2019 to qualify for an FHA loan.  My question is when would be the earliest we could actually speak with a lender about qualifying for a loan?  Our goal is to move into a house very soon after the June 2019 date our BK was discharged.  We would like to have some of the leg work out of the way and not have to wait until the exact date of our discharge to start the paperwork process.

 

Our lowest middle score is currently 679, our DTI is 33% (back end), and our gross salary combined is 160,000.  I am sure our middle score will be well above that by early next year.  We are considering purchasing a new Ryan home and possibly utilize their in-house financing which is NVR, just not sure when we should approach them.

 

Thanks.

[MarvBear]

Welcome to CreditBoards.  Our pros will be glad to chip in and help answer some of your questions.

[Captchaos145]

You can get rolling a couple of months ahead of time. Where did you obtain that credit score?  How many accounts did you open AFTER the BK was discharged. Lenders will use the middle credit score of the lowest borrower.  For example if husband has a 720-679-650 and wife has a 550-575-600 the score that will he used is the 575. If the husband can afford the loan on his own then using his 679 will be best.  I’m in the industry do I’m not chiming in as just anyone. 

[Broman]

I obtained our scores from myfico.  We both have memberships and monitor our scores and reports every month.  So that's how I know our lowest mortgage middle score is 679, but I know when time comes to actually set down with a mortgage company our middle score will be closer to 700.

 

We both have opened multiple accounts since our BK.  Each of us has a car loan, and we have a total of 5 CC's opened.  We each have our own Quicksilver, NFCU CashRewards, NFCU GoRewards, and discover.  Then we added each other as authorized users.  Total credit line is around $20,000 with utilization around 6% for me and 2% for my wife.

 

We also have a CLOC through NFCU for $4500, and $1000 through PENFED.

[liverichly]

With precision timing, you'll be able to close around 2-3 weeks after your 2-year BK discharge date.  Loan officer can gather up all documents and even check credit, the main thing is the FHA case # can't be pulled until the anniversary, which is needed for the appraisal to be ordered, and that may take a week or even longer just depends on the local appraisers.  So the appraisal comes back and can close a week or so later.