buying a home after bankruptcy

Guest 0.10 Dollars($)

I have been discharged from bankruptcy recently. I am thinking for a mortgage to buy a home. Will there be any problem?

Guest 0.10 Dollars($)

Congratulations on your discharge. Smile

But regarding home buying now, I shall strongly oppose.

Samantha · Posted: Tue Jan 31, 2006 11:44 am Post subject:

Hi Darren,

If you ask me I shall advise to wait for some time before you proceed with your home buying process after getting discharged from bankruptcy.

There is a negative mark left on your credit report after the discharge. Many lenders would deny from offering a loan to you after a recent bankruptcy.

Though you will be able to get a loan from some lenders but the penalties are too high. Although you may get a comparable rate but it will not help to boost your score if you immediately go for a purchase after bankruptcy.

God bless you.

For MortgageFit,
Samantha

jameshogg · Posted: Tue Jan 31, 2006 11:50 am Post subject:

Hi Darren,

Although there is no mandatory waiting period for getting a mortgage after a mortgage, but it may not be the best of plans.

You will get the mortgage rates very high and will need to make high monthly payments.

James

Guest 0.10 Dollars($)

Hi,

I feel this is good opportunity to rebuild your credit slowly and then for a mortgage loan. You may start with a secured credit card and continue to be regualr on your payments.

Thanks
Rhonda

Guest 0.10 Dollars($)

When do you think I should go for a home loan?

Thanks

Samantha · Posted: Tue Jan 31, 2006 12:43 pm Post subject:

Hi Darren,

I think you should wait for at least 24 months before moving forward with your plans. This will help you to get a comparable low rate.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

I have a recent discharge and want to purchase a home, I have a secured and insured CalVet Eligibility letter that gaurantee's the lender will not lose money but I cannot get a lender to loan until I wait 24 Months, is there any ,lenders out there that can do I t sooner? I alsoi have a VA letter of eligibility. We didn't want to file bankruptcy but after I was hurt and coule not work we had no choice.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi BRHoyle.

Welcome to the forum.

What type of bankruptcy have you filed? Was it chapter13 or chapter7? If you have filed chapter 7 then you will have to wait at least 2 yours. BTW you can get loan now but the interest rates will be higher. So first try to improve your credit.

BTW how good your credit and how much do you earn now?

Best of luck.
Larry

dgikas · Posted: Sat Jul 19, 2008 2:15 pm Post subject:

With the way the market has been and the lenders that have shut their doors. Your options are FHA or VA loan. Both would like to see 24 months from discharge for a Chapter 7. If you have a great explanation and can document it, you may qualify after 12 months. This is a case by case basis.

If you filed a Chapter 13, it would be 12 months from FILE date, all payments on time to the trustee and the trustee would have to approve the new debt.

Hope this helps a bit.

brian1 · Posted: Sun Jul 20, 2008 8:32 pm Post subject:

The guidelines do state that you can get an exception and loss of income to primary wage earner because of illness or acident is one HOWEVER be warned that most underwriters will still deny regardless. They just are not taking any chances these days
Brian

Caron · Posted: Mon Jul 21, 2008 5:45 am Post subject: RE:home loan after bankruptcy

Hi Dgikas,

I agree with you. If it's a Chapter 13 bankruptcy, then the poster can apply for an FHA or VA loan after 1 year of getting discharged. For chapter 7, it's more than a year, isn't it?

For conventional loans, however, if the poster has filed Chapter 13, then it will be 2 years after which he can get approved for an FHA or VA loan.

0.10 Dollars($)

Caron,

It is 12 months from the FILE date NOT the discharge date for chapter 13..which means they can be IN the Chapter 13 and we can either buy them out of it or we can redo their mortgage and leave the other debts in the Chapter 13...the trustee needs to approve of this.

Chapter 7 is TWO years from DISCHARGE, some exceptions can be made after ONE year but it is not common. I do have access to lenders who are STILL doing common sense "manual underwrites" (not many of those left anymore!).

VA has different guidelines, they are similar, but again when dealing with a BK, the lender will not only look at how long, but what has the borrower done to make sure they are past their financial problems.

Caron · Posted: Tue Jul 22, 2008 6:03 am Post subject: RE: loan after bankruptcy

Well, is this Dgikas or a new guest? I'm not sure but anyway thanks for the information.

What I've come to know is it's 1 year from the discharge date in case of chapter 13, for anyone to get a home loan, that too not a conventional one but the FHA insured mortgages. Well, it may vary from lender to lender. There's a similar discussion on getting mortgage after bankruptcy where our community experts have participated. You may have a look at it and share your views there.

Good luck

0.10 Dollars($)

It was me, Dgikas..I thought I was logged in.

Ok, one more time....it is one year from the FILE date for a chapter 13, NOT FROM DISCHARGE DATE.

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