Went and applyed for the FHA construction loan Tue. We had all ready met with this lender a few weeks back when she pulled our credit & said we were eligable for the FHA. Spent 1 1/2 hours doing paper work. We get all done, she hands us the truth & lending papers. Then she says, "Oh, your BK is not out of discharge long enough. It must be two years." Which would be the beggining of Dec. this year. It's two years from filing at the moment. Then she says we'd have to go conventional. Which of course means higher rates, more down & throws us right out of the running to do this. The way FHA works a construction/perm loan is it is a regualr construction loan with the FHA as the permanent. So if the house wouldn't even be finished until November, 2001. The actual FHA would then be started on the two year mark. So what's the problem? Has anyone done this type of loan? Thanks
Re: Applying for FHA loan. Pro Construciton Loans are one of the hardest to qualify for. They won't approve you until you are approved for permanant financing. They want to make sure they will get paid off before you ever get the loan. Qualifying for a pre-built home is much easier. Was your BK a chap. 7 or 13. Sub-prime lenders use file date for chap. 13's. Rates are the lowest they have been for a long time and some sub-prime lenders are offering rates as low as FHA without having to pay MI(mortgage insurance.) Talk to your broker and have him/her explore some other options. If they don't know of any e-mail me and I might be able to refer you to someone in your area. cforney@premierloans.com
Hi CF It's good to see you posting, haven't seen you in awhile. I might email you to pick your brain a little more if you don't mind?? Thanks Mom
Re: Hi CF Feel free. My server is down now so I may not respond for a few days. Just wanted to let you know I'm not ignoring you. CF
Re: Hi CF Okay thanks so much, I promise my questions are not as complicated as before since I have learned alot from talking with you LOL. I email you soon Thanks Mom
CF on construction loan Hi thanks for responding. It was a ch 13 filed on 3/2001 discharged in 12/2001. We have been waiting to hear for two days now if their going FHA or not. She said we would quialfy for a subprime loan, but it would be at min. 9% interest. The FHA was to be at 7.25% The other hinderence with going to a conventional loan is the amount of downpayment needed. Which we have little of. Any & all suggestions are welcome we are in Central Florida. We got taken several years ago by a mortgage co & we are very apprehensive. At present we are in a rent to purchase home. It is way over priced & needs a lot of work. so we decided we could build a much better place for the same price.
Re: CF on construction loan I'm not involved with FHA loans so I can't tell you anything about the BK restrictions. But sub-prime you're better off to wait until it's 2 years old. E-mail me at cforney@premierloans.com and I'll give you a name and phone number of someone in Florida. CF
Re: CF on construction loan Total mistake on my previous message the CH 13 was filed in 3/99 & discharged in 12/99. Not 2001. Maybe that makes more sense Becky
