Chapter 13 Trustee Mortgage Approval on FHA or VA Loans
This Article Is About getting Chapter 13 Trustee Mortgage Approval on FHA or VA loans. You can buy a house during the repayment plan during Chapter 13 Bankruptcy. You do not have to wait until the Chapter 13 has been discharged. Not too many loan officers, realtors, or even bankruptcy attorneys realize that you can qualify for an FHA or VA loan during Chapter 13 Bankruptcy repayment.
The team at Gustan Cho Associates can help you qualify and close on an FHA or VA loan while you are in an active Chapter 13 repayment plan after you have made 12 timely payments. That is correct. After you filed for Chapter 13 Bankruptcy, you make 12 timely payments, and you will be eligible for an FHA or VA mortgage loan with Gustan Cho Associates. We will even help you and guide you on getting Chapter 13 trustee mortgage approval.
FHA or VA loan Chapter 13 Trustee mortgage approval during The COVID-19 Outbreak was extremely difficult. However, the team at Gustan Cho Associates got it done and we got our loans closed. We can help you get approved for an FHA or VA loan during Chapter 13 repayment plan with a manual underwrite. In the following sections, we will cover getting Chapter 13 trustee mortgage approval for a VA or FHA loan while you are in an active bankruptcy repayment plan.
Mortgage Lenders Experts In Chapter 13 Bankruptcy
Gustan Cho Associates dba of Gustan Cho Associates have built a name for themselves helping individuals and families who are currently in an active chapter 13 bankruptcy. Or other borrowers have their Chapter 13 discharged but have less than two years discharged from a Chapter 13 Bankruptcy discharge. We specialize in FHA and VA manual underwriting.
Not all lenders help borrowers while in an active Chapter 13 Bankruptcy repayment plan get approved for a VA or an FHA loan. Gustan Cho Associates has no lender overlays and can help borrowers during Chapter 13. There is no waiting period after Chapter 13 discharge. We are experts in manual underwriting.
Most mortgage companies do not participate in manual underwriting. This is true even before this pandemic. The team at Gustan Cho Associates are experts in helping borrowers while in an active Chapter 13 Bankruptcy repayment plan.
Mortgage During Chapter 13 Bankruptcy During Coronavirus Crisis
During the COVID-19 coronavirus outbreak, we have received an increase in mortgage applications surrounding chapter 13 bankruptcies. We are here to help you and your family buy or refinance a property during these tough times. Detail the trustee approval process during the pandemic. In this article, we will discuss and cover getting approved for an FHA or VA loan during the Chapter 13 Bankruptcy repayment period.
Getting Chapter 13 Trustee Mortgage Approval Post COVID-19 Outbreak
As of today, it is estimated that over 51 million Americans are out of work. The good news is jobs are starting to become available again. While the COVID-19 cases is still actively in the news, it seems like the death toll has slowed down. This is a good sign for the future of Americans and the global economy.
Home prices keep on skyrocketing year after year. Many homebuyers who thought we were going to have a housing correction have now changed their minds and do not want to take any chances in not being able to buy a home due to increasing home values.
Many individuals were in an active Chapter 13 Bankruptcy before the pandemic struck believed we were going to have a housing correction. A housing correction did not happen. On the contrary, home prices kept on increasing and so did rates. Many people in an active Chapter 13 Bankruptcy do not want to lose an opportunity to let the housing market pass them up and lose a chance to become a homeowner.
Mortgage Guidelines During COVID-19 Financial Crisis
If you were unable to continue your payments due to COVID-19, you may not be eligible to enter into a mortgage transaction. However, if you were able to keep your job and continue to make payments to the trustee, you are more than likely eligible to purchase (or refinance) a single-family home with an FHA or VA mortgage.
Getting Chapter 13 Trustee Mortgage Approval
One of the biggest fears homebuyers in a Chapter 13 repayment plan has is not getting Chapter 13 trustee mortgage approval. The team at Gustan Cho Associates are experts in working with borrowers while they are in a Chapter 13 repayment plan.
Buying a new primary residence during an active chapter 13 bankruptcy. Buying a new home is exciting. Even if you are in an active chapter 13 bankruptcy or less than two years discharged from your chapter 13 repayment plan, you are eligible to buy a new home. While in the active chapter 13 bankruptcy, you will need to get permission from the TRUSTEE to enter into the new mortgage obligation. Below are a few pointers for this process.
- Stay within budget
- If you are currently paying $1500 for rent, nine times out of ten, the trustee will approve you for a mortgage payment of up to $1500
- If you go to the trustee to be approved for a $3000 monthly payment, they may reopen your bankruptcy and reevaluate your financial obligations
- It is not the best idea to max out your qualifications
- Just because your debt to income may qualify you for a high payment, it does not mean that is the best decision for you
We strongly encourage you to stay within your budget.
Most Bankruptcy Trustees Will Approve A Home Mortgage
Ask for trustee approval as early as you can during the process. Many counties will allow you to get trustee approval before you have put an offer in on a property. This is important so you know not to get your hopes up. If you are in a bankruptcy district that requires you to be under contract, we encourage you to speak with your bankruptcy attorney and get their opinion on past approvals.
Chapter 13 Trustee mortgage approval can slow down the closing process. Some counties are taking longer than average to complete the approval process. This is largely due to the pandemic and fewer staff in the court systems.
Refinancing During Chapter 13 Bankruptcy
Refinancing during a chapter 13 bankruptcy. There can be many reasons to complete a refinance. Whether you are looking to pay off consumer debt, pay your mortgage off faster, or lower your overall monthly payment, a refinance may benefit you and your family. If you are in an active chapter 13 bankruptcy, you will need trustee approval to refinance your home. If you are discharged from your bankruptcy but are not quite at the two-year mark, you will not need permission from your trustee.
Cash-Out Refinance During Chapter 13 Bankruptcy
Refinancing during a chapter 13 bankruptcy can be a little difficult. If you are looking to complete a cash-out refinance, you must have enough equity to pay off the trustee in full. This can result in certain creditors coming back after you after the discharge. In the past, we have seen bankruptcies in which revolving credit card debt is included and being able to come back after the individual because they did not stick to the full repayment plan. Paying the bankruptcy off early is not always the best idea.
Types of Mortgage Options Available With Chapter 13 Trustee Mortgage Approval
You want to talk to your bankruptcy attorney for specifics on your bankruptcy plan. A rate and term refinance is usually signed off by the trustee. This is because you are saving yourself money.
We can help you either purchase or refinance your home during a Chapter 13 Bankruptcy. Many homeowners want to do a cash-out refinance to buy out the Chapter 13 Bankruptcy early. With home values at historic highs, you may have more equity than you would ever have imagined. Why not think about buying out your Chapter 13 Bankruptcy early.
Just because you are in bankruptcy does not mean you cannot put yourself in a better financial situation. Whether you are lowering the term of your mortgage or lowering your monthly obligation. Typically, the trustee will sign off on these transactions. Once again, we strongly encourage you to speak with your bankruptcy attorney before considering refinancing your property.
Chapter 13 Trustee Mortgage Approval During Bankruptcy Repayment Period
As you can gather from our website, we have helped hundreds of mortgage borrowers obtain mortgage loans surrounding chapter 13 bankruptcies. For any questions on the trustee approval process or the manual underwriting process in general, please call Us on (800) 900-8569. You may also email alex@gustancho.com.
Over 80% of our borrowers are folks who could not qualify for a mortgage at other lenders due to tough lender overlays or because they got a last-minute mortgage loan denial. We are used to helping borrowers who got the run-around at other lenders with conditions after conditions.
We are available seven days a week to answer your mortgage questions. There is plenty of contradicting information surrounding mortgage lending on the internet. We encourage you to call us directly to discuss our lending criteria. Many lenders deal with extensive LENDER OVERLAYS and most lenders have added additional overlays during the COVID-19 coronavirus outbreak. The good news is, that Gustan Cho Associates dba of Gustan Cho Associates are still lending without lender overlays to get in the way. Even if you have been turned down by your current lender, we encourage you to reach out to us today.
