Wandering Wonderer asked:
Years ago (when I was a loan officer) there were many programs that offered mortgages to those who had discharged from their BK CH7 or CH13. Are there still any programs like that? I know FHA will after two years (or at least they did as of 8 mos ago) but I think that a CH13 discharge does not occur for 5 years. Am I looking at seven years before I am able to purchase another home?
MAJOR
Years ago (when I was a loan officer) there were many programs that offered mortgages to those who had discharged from their BK CH7 or CH13. Are there still any programs like that? I know FHA will after two years (or at least they did as of 8 mos ago) but I think that a CH13 discharge does not occur for 5 years. Am I looking at seven years before I am able to purchase another home?
MAJOR
WESLEY
No. Lending standards are very strict. 2 to 5 years ago, anyone with a pulse would qualify. Those days are long gone.
Comment by Gaytheist Buddha — August 9, 2009 @ 4:12 am
ALPHONSO
Figure at least a few years. Subprime mortgages are a thing of the past. You can still get an FHA backed loan 2 years after bankruptcy discharge assuming your credit record remains clean for those two years.
Comment by Steve D — August 11, 2009 @ 9:20 pm
GREG
For chapter 7, you have to wait 2 yrs for FHA. For chapter 13, as long as you have no lates after you filed the BK and your fica is 620 or better you may qualify. In some cases you can get permission from the BK trustee and get a mortgage while still in ch 13. Any late payments after a BK can be deal breaker. You will need a good explanation for the BK (something other than “I got in over my head”) and a lender that will do manual underwriting. At least this has been my experience in selling manufactured and modular homes.
Comment by michaelb31061 — August 12, 2009 @ 9:44 pm