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Loan? (paying off ch.13 and all debts)


Maury1965
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My wife and I have just sold our home. We live in Texas. We are going to use the equity from the sell to pay off a ch.13 and all of our debts. We will not have any payments, including automobile. We’ll be dept free!!! We are currently attempting to get a mortgage loan for a $129K home. We have been dealing with texaslending.com over the phone for the past couple of months. The loan officer has been telling us that we would be able to qualify for a loan with nothing down, .05% at the most. Now, of course, since we’ve sold our home, he’s telling us that we will have to put a minimum of 15% down. We will have some money left, but not enough to put that much down. My wife’s middle score is a 620 and mine is a 571. I make approx. $55K per year. My wife only makes approx. $10K per year.

My question is… Should I be able to qualify for a conventional loan with a maximum of .05% down? I expect to take a beating on the interest rate until I better my credit score and am able to refinance. If I don’t qualify, what other options are available for us? I don’t know if it matters, but the house is for sale by owner.

Thanks,

Maury Taylor

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I would be considering FHA for this one, as long as the Chapter 13 has two year aging from the file date, and you have met all your credit obligations since filing.

You would not be able to get financing if you have any deragatory credit since filing the Chapter 13.

Debt ratios are limited to 29% for housing expenses and 41% total debt on FHA financing, and the purchase price would be no problem.

You also must have no outstanding collections, judgments or chargeoffs that have not been addressed, and payment arrangements made.

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