I am about to get discharge from chapter 13 bankruptcy at the end of the year. I just got married and I am about to have a baby. I want to buy a house next summer. Is this possible? I have three credit cards right now that I have been paying on time to help boost my credit score but I know that bankruptcy is going to mess me up. Any advice..........
2007-05-11 06:54:28 · 10 answers · asked by Tankman 1 in Business & Finance ➔ Credit
After the Court grants your discharge, you may purchase a house as soon as a Lender agrees to extend a loan to you.
Depending on your employment situation, there are some lenders who would lend to you right away, after the discharge. I must comment, though on the loan terms which might be extended to you. Please do not be persuaded to enter into an Adjustable Rate Mortgage (ARM) or some other exotic. If the rate is not fixed, ask for a complete amortization showing a worst case scenario for every payment through the 30 years of the loan term. It might shock you. Of course, the loan officer will not be able to predict what will happen to insurance rates and real property taxes, or other items for which they will require advance payments into escrow.
You are just about to exit a Ch. 13; caution will keep you from reentering bankruptcy.
Good luck!
2007-05-11 07:04:08 · answer #1 · answered by Rob B, of MD 4 · 3⤊ 0⤋
Not all mortgage lenders are created equal. Especially those targeting bankrupt people. Because there are several different types of mortgage lenders, it's critical you use the right one.
The lender you need should be capable of doing an FHA mortgage. FHA stands for Federal Housing Administration. The good news about FHA is that they don't use FICO® credit scoring to make a loan decision.
To qualify for an FHA loan you need:
* 24 months after your Chapter 7 discharge
* A discharged Chapter 13
* 12 months of on-time Chapter 13 payments if you're still paying your trustee—and of course, trustee approval
Also, FHA loans have limits on them. Be sure your loan doesn't exceed the loan limit for your area.
Once you know what your loan limit is, simply contact an FHA mortgage lender and inquire about becoming pre-approved.
2007-05-12 15:55:57 · answer #2 · answered by Brian H 2 · 0⤊ 0⤋
It takes seven years to completely repair your credit. The credit cards are good, however having that much credit out there may not be helping you much at all. If you are able to get a mortgage it may be at a very high rate if you have not gone through the seven years if you can find one at all. Start calling banks and see what they can do for you and what rates they can offer. The more homework you do, the better of a deal you can get. I also recomend picking up a copy of "bankrupcy for dummies" (no, Im not calling you a dummie) this book will put it in really easy terms what you will need to do step by step to repair your credit and help you with some tips to improve your chances at a good rate on a new home. Good luck.
2007-05-11 07:46:32 · answer #3 · answered by shadowsthathunt 6 · 0⤊ 1⤋
If you want to get a mortgage loan from a REPUTABLE lender, they will want to see that your bankruptcy has been discharged for at least two years. They also want to see that you've reestablished credit and have not defaulted at all - not even one late payment. Your interest rates will still be on the higher side, but two years is a good rule of thumb if you work with a good lender.
2007-05-11 09:34:56 · answer #4 · answered by YSIC 7 · 0⤊ 1⤋
There's no law saying you can't buy a house the day after declaring bankruptcy.
The problem is finding someone willing to lend you money after you've proved yourself to be a deadbeat.
2007-05-12 15:14:38 · answer #5 · answered by Quixotic 3 · 0⤊ 0⤋
Generally it takes about 2 years depending on how much debt you have and how long it takes to discharge it.
2007-05-11 08:12:21 · answer #6 · answered by pleasure6910462 2 · 1⤊ 0⤋
I think u should be OK. Keep paying your bills on time and if your score is 620 and up u will be fine
2007-05-11 08:04:48 · answer #7 · answered by shorty21 5 · 0⤊ 0⤋
cani buy with just 4 months left in cp 13
2015-11-12 11:44:27 · answer #8 · answered by Rose Kennedy 1 · 1⤊ 0⤋
Depends on your income and down payment.
Some banks approve anyone if they can get 25% or more down. And if you have great income you can probably get a loan as well.
2007-05-11 07:04:27 · answer #9 · answered by Anonymous · 1⤊ 0⤋
The next day, if you can find anyone to give you the loan. I can't imagine the rates you're going to have to pay.
2007-05-11 07:02:16 · answer #10 · answered by Anonymous · 1⤊ 1⤋