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I am in a ch13 bankruptcy with a 510 score. When can I purchase my first home?

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November 14 2013 - Indianapolis
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Typically 2 yrs after discharge with approved credit  usually around 620 min. 
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November 15 2013
Profile picture for wetdawgs
Dear jgosman7:

If you have all cash, you can purchase sooner than later.     Perhaps you were asking when you can get a mortgage.   The lenders have given sensible advice.  

Now it is up to you.   How are your savings for down payment, closing costs and an emergency fund?    How's your action plan for improving your credit score.   It doesn't happen magically.   It may improve without concerted effort, but it has a better chance of improving if you identify an action plan and follow the plan rigorously.

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November 15 2013
Usually takes two years.  Shop around for a good mortgage broker.  Some don't want to work with people who have had prior bankruptcies, and they will tell you you still need to wait before you can purchase a home.  It is their way of shinning you on.
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November 15 2013
Most waiting periods bankruptcies are around 2 years but can be more depending on your current finances, financial record, your lender/loan type, and circumstances of the loan. Also, since you have to go through a waiting period anyways, I suggest you spend the next couple years improving your credit score. As of now, your credit score can be very difficult for a lender to deal with. The lowest credit scores lenders can do are around 580, but aim for 600 or above do give yourself more options. Well I hope this helps and good luck to you!
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November 15 2013
[Irrelevant content removed from post, please see our Good Neighbor Policy]

Chapter 13; FHA and VA will allow when you are 1 year into it, with caveats, it does not yet have to be discharged.

The 510 score; very few lenders touching that. FHA will allow it with 10% down; and VA doesn't have a score floor but many lenders are steering clear of scores in the 500's.
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November 14 2013
Typically the standard is 2 years after the discharge date but you may have better luck with a small local bank or credit union as they may allow for 1 year after discharge. Establishing new trade lines (like credit cards) will definitely help with the approval process-that's of course if your trustee allows you to open one. Secured cards are always a viable option. Good luck! 
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November 14 2013
If you are still paying on a Chapter 13 Bankruptcy and those payments have been satisfactorily made and verified for a period of one year, then you can qualify for a home purchase today.

The court trustee's written approval will be needed in order to proceed with the loan, and you will have to give a full explanation of the bankruptcy with the loan application and must also have re-established good credit, qualify financially and have good job stability. 

Hopefully you can keep the credit score above 500, once you get under it then there's no way to get any loans done. 

I hope this answer helped!
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November 14 2013
The rule of thumb is that after a Chapter 13, a mortgage company will not even consider a mortgage until 2 years after the discharge date. Some companies that are strict will wait 3 years. Remember that a Chapter 13 will remain on your credit report for about 7 years, and in that time you should, in my opinion, always pay on time and really try to increase your credit score as much as possible in those 2 years after the Chapter 13. A good credit score helps you get a better interest rate, and with a ch. 13 you should expect a more than average interest rate. 

Hope this helps! And Good Luck!
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November 14 2013
 
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