December 2, 2021

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Articles Published in: December 2014

FHA Loan Waiting Times Post-Bankruptcy: A Reader Question

A reader asks, “I had a bankruptcy discharged in July 2014. How long do I have to wait to purchase another home with 10% down payment with a credit score of 590?” Post-bankruptcy, a borrower must work hard to establish the best credit possible in order to qualify for a new home loan. You may find that lenders are willing to work with borrowers with credit scores starting at around 620 or higher. The nature of a borrower’s wait time to apply after bankruptcy depends on the nature of the bankruptcy. The rules governing this are found in HUD 4155.1 Chapter Four. On Chapter 7 bankruptcy, Chapter 7 says: “A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA-insured mortgage if at least two years have | more...

 

FHA Loan Rules For Wells: A Reader Question

A reader asks, “A property has a well under the garage floor which is accessed through a steel covering. Is this acceptable if the Health Dept approves it?” The answer to this question depends greatly on whether the well as described is acceptable under state or local building code. FHA loan minimum property requirements don’t overrule state and local building codes, so compliance with those codes would be required–in the appraisal process, if the appraiser notes a condition that does not comply with either FHA loan rules or state/local building codes, corrections may be required as a consition of loan approval. When it comes to wells,  FHA rules printed in HUD 4150.2 state: ” A domestic well must be a minimum of 50 feet from a septic tank, 100 feet | more...