Legal Question in Bankruptcy in North Carolina
obtaining a mortgage under chapter 13
I have been in a chapter 13 plan for 4 years. No late payments. Would like to purchase a home but can't find the right loan. FHA? Conventional? Are there limits on how much I can borrow regardless of current income? i've been told the ceiling is $120650. max.. Annual income appx. 57000 with appx payout each month 900. want to make a 5% down payment but understand 3% isn't unheard of. house is listed at 132900. Current interest rate at 7.50
1 Answer from Attorneys
Mortgage while in 13
You cannot voluntarily incur new debt while ina Chapter 13 without court approval, and it isdoubtful that a lender would lend under thosecircumstances anyway. See your bankruptcy lawyer. Most likely you will need to pay off the plan (which you can do in a lump sum) prior to borrowing the new money.