how soon can u buy a house after filing for chapter 13?
2006-12-28 03:26:50 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
There are two different mortgage markets out there. Conforming will require at least 2yrs since discharge with no adverse credit since the discharge. These are the normal interest rates you hear about.
Subprime you can get a mortgage in as little as one day after the discharge but your rate will be much higher and generally you'll have to accept a 2yr arm with a 3yr prepay.
The problem with a Chapter 13 is that you need to get approval of the trustee in your BK case to buy a home, and it is doubtful you'll get it as you are making payments to creditors. A chapter 13 takes several yrs before the discharge while a Chapter 7 takes only a couple months to go through the process. So really a chapter 7 is much quicker and allows you to get back on your feet sooner.
2006-12-28 03:41:20 · answer #1 · answered by Nicholas M 3 · 0⤊ 0⤋
If you have completed your re-organization (Chapter 13), by paying off all the debts you should be able to purchase a home. I can refinance people who do not have a discharged Chapter 13 if they use the loan proceeds to pay off the debts listed in the Bankruptcy (Wells Fargo - Home Credit Solutions). They won't loan you 100% of the purchase price right away but will finance you if you have money down.
2006-12-28 03:37:23 · answer #2 · answered by Martini Babee 4 · 0⤊ 0⤋
We bought within two years of filing. You really have to find a finance person that is going to work for you. It is possible. They usually need the bankruptcy to be discharged first. That usually occurs within a few months of filing. Good luck
2006-12-28 03:30:28 · answer #3 · answered by morgansway3 2 · 0⤊ 1⤋
bankruptcy usually stays on your credit report for seven years.
2006-12-28 03:29:45 · answer #4 · answered by ken s 6 · 0⤊ 1⤋