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Mortgage after bankruptcy

I have just past a year since my chapter 7 bankruptcy discharged. I was underemployed for over five years. The bulk of my debt was from credit cards, most of which where used to cover a gap in education expenses and general bills from not making enough money to cover bills. I did not have a foreclosure and have never had a mortgage.

Several months after filing, I received a job promotion that nearly doubled my income. I've been with this employer for over six years, it is a very stable job with reliable job security. I have a car that I bought after filing that I've made on time payments for a year, regular, monthly payments on student loans since the discharge, and I have a credit card that I'm using to help rebuild my credit. I've also been renting for six years and have never been late on rent payments. My FICO score is currently 670.

At this point, is it possible to get an FHA mortgage? I can show extenuating circumstances that led to my bankruptcy and can show how my situation has changed since then making it highly unlikely that I would have financial problems in the future. Even if FHA would give approval for the extenuating circumstances, would have I have any chance of finding a lender that would be willing to give me a mortgage?
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October 10 2013 - Columbus
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Answers (9)

Usually the bankruptcy needs to be 2-5 years from the original filing before you can obtain an FHA loan. There are other lenders that will consider a loan just 1-2 years after the original BK filing. You may want to try some direct loan companies rather than FHA. Your credit score and income are a big factor; having a larger income can help with your situation. Likewise a larger down payment may also help you to qualify for FHA or other home loan options.
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December 07 2013
It seems that you may have to wait another year for an FHA loan. Like the others have said, it usually takes 2 years for someone in your situation. If you'd like you can still speak with a lender directly to get more direct information and help on your situation. So if you have any other questions or need a loan please contact me through the information on my profile page. I hope this helps and good luck!
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October 11 2013
You would need to wait at least 2 years for FHA. Based on your post(s), I don't believe that you would be able to qualify for the new Back to Work program. You have been working for the same employer for the past 6 years, but are just one year out of chapter 7. It doesn't seem like you experienced any kind of reduction to your income, it's just that your income was lower than what it is now. It seems like you were able to manage the credit card debt by not defaulting during the 5 years leading up to filing bankruptcy.
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October 11 2013
You have to wait 24 months after Chapter 7 to look at being able to buy a home again. But there is the new government program you could qualify for. 
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October 11 2013
Seems like your info could work for the FHA Back to Work program. The most important thing with this program is that you are willing to document the circumstances of loss of income. Seems like you are, so start digging for the documentation to prove you had an "economic event." Any lender participating in this program will need it. Don't forget that you will need to complete HUD approved Homeowner's Counseling 30 days Prior to applying, so take care of that now.
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October 10 2013
I agree with Ken, sounds like you qualify for FHA under their 'back to work' initiative. It is for those who due to the economic conditions of the time lost their job and/or suffered from reduced income especially from 2008 forward. They are only offering this program until 2016.  If I can answer any add'l questions, I'd be happy to help. Best wishes otherwise, Kim Lawson, Ohio Licensed Mortgage Loan Originator. Contact and licensing information can be found on my profile.
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October 10 2013
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Here is a little more background information. Prior to 2007, I was working on my degree, living at home, and working full time. I had excellent credit. A year before I finished my degree, the company I worked for relocated so I was no longer working. With my severance package and unemployment, I kept my credit in great standing through graduation although I was putting some of my education cost on a credit card. I graduated in 2007 right as the economy tanked. I took the first and only job I was offered which required me to move to Columbus. Six months after I started, my pay was cut for two years, and raise increases froze after that. In the last two years, with a more stable economy, wage increases reinstalled.  Over the last few years, I accumulated some other credit card debt to cover things like utility bills from time to time. I was making roughly $30,000 when I started, $35,000 last October. My current income is $66,000, the house I'm looking at is $124,000.
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October 10 2013
Yes you should qualify for the FHA back to work program which we offer.  I'm originally from the Columbus area.  You can contact me through my profile and we can go over your options.
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October 10 2013

Let me see if I understand this correctly...you were working, just not in a position you are in now, and got into credit card trouble. You were not in a position prior to getting in trouble of making any more money than when you got in the trouble. You then decided to file ch. 7 to get out of your credit card debt that you accumulated while you were steadily employed making the same amount of money you were making the entire time prior to accumulating this debt. Does this sound correct?

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October 10 2013
 
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