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First Time Homebuyer & Chapter 13

I will make my final payment to the Chapter 13 Trustee July 2014. When should I start the process of purchasing my first home? Should I wait until after I receive the discharge letter?
  • January 03 2014 - US
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Answers (5)

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Brian I have been in the Chapter 13 payment plan since July 2009. All payments were made on time.
  • January 07 2014
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Thank you everyone. All of you have been very helpful.
  • January 07 2014
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How long have you been in your Chapter 13 payment plan? If you have been in it for 1 year with a history of on time payment, you have a chance at obtaining a FHA loan. This has other requirements as well but it is a possibility that you should look further into. Also, it never hurts to get started as soon as you can when it comes to the lending side. In other words, it wouldn't hurt to contact a lender to see what you should do between now and July. Lenders like myself can give you great advice on how to prepare your finances, so as the time comes, you will be ready. So the best thing for you to do is to speak with a lender directly to see if you can get started on financing with your situation. There are lenders like myself that would be glad to speak with you to help you get the loan that you need. Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • January 06 2014
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 If you feel you are ready, you can start your home search now.

If I were you, I would find a lender I trust to do a thorough pre-approval for an FHA loan. Your Chapter 13 is only one part of your total credit picture. Your current credit score and debt ratios will also prove key to your ability to purchase.

I congratulate you on making the hard choices and being so close to paying off your debt. Good luck in your househunting!
  • January 03 2014
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If you are looking to purchase an FHA home loan, the following would apply for a chapter 13:

Eligible, subject to all of the following documentation:
Evidence that the borrower is at least 12 months into payment plan
Evidence of payment amount and that all payments have been made on time
and Evidence of court permission to enter into mortgage

  • January 03 2014
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