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bankrupcy

hello, I filed a bankruptcy on 2010, I would like to know if I can apply to buy a condo or apartment, I am paying to much for rent, please let me know, thanks
  • August 19 2013 - Denver
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Answers (5)

You are making the right choice in moving from a renter to a home owner.  The benefits of home ownership greatly outweigh the convenience of renting.  

As the others have mentioned there are options available to you.  It really depends on the type of bankruptcy and more importantly the steps you have taken since to repair your credit.

Please feel free to reach out to me and we can discuss the process that lies before you.  I have a few lenders I can put you in touch with.  

The first step in this process is getting pre-approved to see what you can afford. More importantly, it allows you to shop with the ability to write a strong offer when you find the right home.   

I work all over Denver and have helped many buyers looking for townhouses and condos.  

I look forward to speaking with you,

Ryan
  • October 01 2013
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Was this a chapter seven or thirteen. If discharged more than 2 years, which it should be you should be ok to apply for an FHA or VA loan

  • October 01 2013
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What was the date of the discharge of the BK?  Have you maintained and rebuilt your credit since then?  If so you should be eligible for new FHA financing. Send me a message if you would like help in evaluating your current options.

  • August 20 2013
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If undergone bankruptcy, it doesn't mean that you can't buy a home. Rather they are being encouraged to build credit by taking on debt. But yes, debt will be closely scrutinized, come in smaller amounts, and have higher interest rates. This is just done to minimise the risk.

  • August 20 2013
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Profile picture for davidhawke
From the FHA website... (assuming you have had PERFECT re-establishment of credit since the BK was discharged, with no new lates)...

After Chapter 7 bankruptcy, (not to be confused with Chapter 13 bankruptcy rules) the borrower must wait out the FHA's minimum "seasoning" period. At the time of this writng, that period is two years plus any additional amount required by the lender. Some banks will require that a borrower wait a total of three years before applying for a new home loan.

Other lenders may be willing to work with qualified borrowers after the FHA two-year minimum for Chapter 7, but it is important to note that the required waiting period begins from the time the bankruptcy is discharged--NOT the time the bankruptcy is filed.

Here is some additional information on waiting periods and other requirements for both Chapter 13 and Chapter 7 bankruptcy:

CHAPTER 13 BANKRUPTCY WAITING PERIODS

FHA rules allow a lender to consider approving an FHA loan application from a borrower who is still paying on a Chapter 13 Bankruptcy-but only if those payments have been made and verified for a period of at least one year. 

The borrower isn't automatically able to apply for a new FHA loan if they meet this requirement--the court trustee's written approval is a condition of the policy. Additionally, the borrower must write a detailed explanation of the bankruptcy and submit it with the loan application. The borrower must have good credit, a satisfactory employment history and other financial qualifications.

CHAPTER 7 BANKRUPTCY WAITING PERIODS

As mentioned above, all borrowers must wait least two years after the discharge date of a Chapter 7 Bankruptcy. The discharge date should not be confused with the date bankruptcy was filed. 

As with Chapter 13 bankruptcy, FHA regulations demand a full explanation to be submitted with the FHA home loan application. To get a new FHA insured mortgage loan after Chapter 7, the borrower must qualify financially, establish a history of good credit in the wake of the filing of the Chapter 7, and meet other FHA requirements. 
  • August 19 2013
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