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How difficult is it to buy a home after discharging a Ch 13 bankruptcy?

My husband and I discharged a Ch 13 in June of 2012.  We would like to buy a home again. We are both employed with a combined income around 70K per annum.  Our credit scores currently range between 630 and 680.  We have had a car loan since August of 2012 with no late payments.

Our biggest problem is putting together a down payment. We hope to have between 3 - 5 % for the down payment and closing costs.  

Do we have even a snowball's chance of getting a loan approval?  We are desperate to get OUT of a very cramped apartment.  We are looking for something around 110K - 120K.
  • February 19 2013 - Nashville
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Answers (6)

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  • October 06 2013
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There are mortgage experts that deal specifically with credit issues.  They will be able to tell you if you can purchase a home, and possibly help raise those scores before you do so that you will qualify for the lowest rate.  I would start now with asking a professional loan officer what you can do right now and what your expected time frame is.  A lease purchase might also be a good option for you.  You should be able to negotiate those closing costs with the seller no matter when you are able to purchase to free up your cash for the down payment.
  • February 24 2013
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Profile picture for user2185536
Aloha from the Big Island of Hawaii!

This is a question best asked to lenders.  Realtors help you find your dream property, but can not know all the details and programs about mortgage and lending.  Lending guidelines can differ from bank to bank and loan brokers. Also it was loose lending guidelines that brought about the recent boom and bust.  Best wishes for you to be able to buy again soon!

Marti Morishige, PB  Orchid Properties, LLC
  • February 19 2013
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Profile picture for elisajjenkins
We have been told there is a two year wait.  No one can tell us if this is mandated by law or is merely a guideline some lenders use.

Why do lenders penalize those who were forced (unwillingly, kicking and screaming the whole way) into bankruptcy due to job layoffs, once they have recovered and are once again financially stable?  It makes no sense.
  • February 19 2013
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Profile picture for Ofe Polack
Call at least two mortgage brokers and explain your situation, they should offer you good advice once they can analyze your financial profile.
  • February 19 2013
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It's my understanding you have to wait 2-3 years before you can purchase again.  You can double check this with your lender.

  • February 19 2013
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