Profile picture for zuser20140609090948884

How soon after bankruptcy...?

I had a bad divorce along with several bouts of unemployment, resulting in bankruptcy (completed about 2 years ago), though I've been at the same job now for a year. I am attempting to rebuild my credit but hate throwing money out on renting. I now find my landlord wants to move back in about 7 months from now. What are my chances for obtaining a mortgage loan with not much down? Who can I contact to discuss the details?
  • June 09 - East Windsor
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (8)

[spam]
  • June 14
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

When it comes to the waiting period for bankruptcy it depends on the type of bankruptcy and type of loan. To obtain an FHA loan or a VA loan after a Chapter 7 bankruptcy, you must wait two years from the date your Chapter 7 is discharged. You can obtain an FHA loan during a Chapter 13 bankruptcy as long as you have made 12 months of satisfactory Chapter 13 plan payments, but you must have bankruptcy court approval to get the loan. In the case of either an FHA loan or a VA loan, you must provide an explanation of the bankruptcy. Although there is an exception for FHA loans. You can possibly obtain an FHA loan after one year if you had an economic event (such as unemployment) that resulted in a loss of income causing you to become bankrupt. Conventional loans have the longest waiting periods. If you want a conventional loan, you must wait four years after receiving a Chapter 7 discharge and two years after receiving a Chapter 13 discharge. If your Chapter 13 case was dismissed without a discharge, you must wait four years from the date of the dismissal. If you would really like a mortgage there are also hard money loan options that you can consider. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • June 09
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

So long as there was no foreclosure attached to your bankruptcy, you can apply using FHA 2 years past your discharge date.  If there was a foreclosure, then you would need to wait 3 to 7 years for most programs, but regardless of which program you go with, you would need to have re established credit and sufficient scores to qualify. 

Feel free to reach out to me via my profile if you have any additional questions or concerns.  William J. Acres, [Promotion removed by Zillow moderator. See our Good Neighbor Policy.]

  • June 09
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Yes FHA, VA and Conventional do have hard and fast limits, however there is another path.  I do work with investors that do loans one day out of BK , one day out of short sale, etc.  The rate and terms aren't the lowest, but it could be a stepping stone to getting into a home and refinancing later rather than waiting and risk being priced out of the market.  Look me up on my profile and send me a message. 
  • June 09
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for zuser20140609090948884
Thank you both. My pre-divorce home was sold as part of the divorce and was not foreclosed on (though I believe it was headed in that direction). That was about 4 years ago. The bankruptcy was a little later. I have since managed to obtain 2 credit cards with low limits to help rebuild my credit, which I believe is in the 650 range. While money is still tight due to alimony, that ends in 18 months, though I will need to move before then.
  • June 09
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I agree with Dave, sit down with a lender NOW and get a solid plan in place vs winging it in 7 months. That lender will spell out exactly what steps to take and find out specific waiting periods depending on the details of your bankruptcy. Good luck!
  • June 09
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

For FHA financing, two years from discharge date is the key. If you had a property foreclosed on, it is three years from the date the deed was taken out of your name.  Other types of financing have differing waiting periods.  USDA is 3 years, VA 2 years and Conventional is 4-5 years.
  • June 09
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Please look me up on my profile.  I am a local NJ licensed mortgage banker.  I can walk you through how to plan for a mortgage so you can buy a home.

Thanks-Dave
  • June 09
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.