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Question about obtaining a mortgage 1 year after chapter 7

Background, I fought to keep my house and stay out of bankruptcy for several years after having to stay out of work for 2 months. However I was forced out of the house and foreclosed on.  I then had to file Chapter 7 and got a discharge in october 2012 because I was still fighting over a house I hadn't been in for 3 years.

I got the chapter 7, I have a new car loan which is up to date and 1 revolving line of credit at $600 which I had for 6 months.   I am having trouble getting the credit score above 610 right now even keeping up with payments on time and not having any delinquencies or marks against my credit.  

What time frame do I have to wait to get a VA loan (i have 30%) and what credit score do I need for the best rates.  In hindsight it would have been easier to file bankruptcy 4 years ago and have all that time behind me but now how do I and when can I restart with a mortgage?

What are my realistic options?  I also live in the state of Georgia
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September 22 2013 - US
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Answers (1)

VA financing typically requires 2 years after bankruptcy to qualify for new financing. You said that your currently have a credit score of 610? Assuming that your BK waiting period has passed and you are current on all other obligations, a 610 credit score would qualify you. Keep in mind that a 620 score would get you much more favorable rates.

I'll avoid self promotion here, but there are many lenders who can help you "optimize" your credit and get you up a few points for qualification purposes (my company included).

If you are very eager to get into a home now, you can look at FHA financing. FHA just rolled out with a program that allows eligibility after 1 year of most recent derogatory (bankruptcy, foreclosure, short-sale, etc...) however, there are a few conditions to be met. You could always look at getting FHA financing now, and refinancing into a VA loan once you qualify.

I'm personally not licensed in GA, however, my company is. I can get you in contact with a VA loan specialist who can review your scenario with you.

Just let me know.

Good luck!

Brandon
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September 23 2013
 
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