Zillow Advice: Credit Scores - Obtaining a Mortgage 1 year after bankruptcy discharge...advice please :) http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ Zillow Advice | Zillow Real Estate FHA allows for a purchase ... http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ FHA allows for a purchase after 12 months if the borrower can show that the bankruptcy was caused by extenuating circumstances that are not likely to recur. They also need to demonstrate that they have their finances in order, so most likely will need some form of re established credit, even thought FHA states that "choosing not to obtain new credit" constitutes financial responsibility. Wed, 16 Apr 2014 11:53:00 GMT http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ 2014-04-16T11:53:00Z Randall,That is somewhat ... http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ Randall,<br/><br/>That is somewhat odd to post in this thread since AngelHealth never lost her home. The question is about a Chapter 7, not a foreclosure or short sale.&nbsp; Thu, 29 Aug 2013 15:17:00 GMT http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ 2013-08-29T15:17:00Z [Off topic removed by Zillow ... http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ <strong>[Off topic removed by Zillow moderator. Please see our Good Neighbor Policy for information.]<br/></strong><br/> Thu, 29 Aug 2013 03:47:00 GMT http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ 2013-08-29T03:47:00Z Oh my goodness...I'm glad ... http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ Oh my goodness...I'm glad I found this forum...all the advice has been amazing (I don't know how to pick the best answer because they are all good!).&nbsp; This is exactly what I was looking for....advice on how we stand right now and how we can improve!&nbsp; :)&nbsp; <br/><br/>The Medical debt is about $4400 ($3200 for my daughter's ER visit-she ate a mushroom from my sisters backyard that we couldn't identify...she was out of the Er in 6 hours with only a coal drink and the bill was outrageous!&nbsp; And $1200 for my ER visit - food poisoning from crab after I attended a benefit crab feed-it was horrible). Her bill was actually $6000 but we paid it down to the $3200 since last October...now we are working on that.&nbsp; And we got better insurance now so if anything else happens girls are covered with no deductibles-just a co-pay and I have a low deductible plan.&nbsp; <br/><br/>We will continue to pay that down and get back on track again!&nbsp; To answer the question about the foreclosure-we did have a foreclosure that closed back in 2006 or early 2007...that was not in our bankruptcy as it had already been done.&nbsp; What was in our bankruptcy was just all of our credit card debt from that house (when we were in our home, we were trying to remodel and update things and then life got the better of us).&nbsp; I regret not filing bankruptcy back in 2006 when we left our home (before any assistance was available to homeowners going through rough times) and just starting fresh then.&nbsp; Hindsight is 20/20 right?&nbsp; But we are following a budget now and no new credit except my little credit card.&nbsp; I am using that only for work related expenses that I get re-imbursed for (I'm a Commercial Loan Audit assistant working for a Bank auditing firm here in California)...so i pay that off just about every month. <br/><br/>Thank you again everyone for your advice!&nbsp; <br/>Angel :) Thu, 06 Oct 2011 19:24:00 GMT http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ 2011-10-06T19:24:00Z Angel,It looks like you'll ... http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ <p class="MsoNormal">Angel,<br/><br/>It looks like you'll have to wait about a year before you can qualify for anything. FHA allows people to buy two years from Chapter 7 discharge.<br/><br/> One thing you'll want to keep in mind is guidelines state that a buyer should have reestablished some new credit (as you are doing with your new credit card) and not have any derogatory marks on your credit report since the bankruptcy. But since your two collections are medical-related it may still be OK. I would do all I can to take care of them ASAP if you seriously want to buy as soon as possible.<br/><br/> As far as the down payment goes, 5% is more than enough and is actually the sweet spot for FHA loans (which only require 3.5% down).<br/><br/>If you're serious about buying once those two years are up I'd start talking to experienced, professional, local lenders about getting "mortgage ready" now so all is in order once those two years have passed.<br/><br/> Hope this information helps a little...<br/><br/>Sincerely,<br/>Greg<br/>Innerwork Mortgage<br/>Roseville, CA</p> Thu, 06 Oct 2011 18:51:00 GMT http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ 2011-10-06T18:51:00Z Angel,currently FHA requires ... http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ Angel,<br/>currently FHA requires 2 years from the discharge date of a ch 7.&nbsp;To confirm,&nbsp;did your ch 7 inculde a forclosure; a forclosure will increase the time frame&nbsp;too 3 years from the title&nbsp;transfer date of the property. It is very important to start rebuilding your credit and credit score. a good rule of thumb is 3 tradelines (aka credit lines) opened for minmium 12-24 months. I have many clients in your present stiuation and many that have taken the right step to achieved home ownership. it is very important to have no derogitory credit after a bankrupty. even thou underwriters are more forgiving of medical debts, my best advice would be meet with local lender, follow&nbsp;thier advice, and refferals. <br/><br/>Justin <br/>Vitek Mortgage Group <br/>Cameron Park, CA Thu, 06 Oct 2011 18:11:00 GMT http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ 2011-10-06T18:11:00Z Hi Angel,You would need to ... http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ Hi Angel,<br/>You would need to wait another year and continue working on your (and your husband) credit score. And yes if all goes well, you may be able to qualify for an FHA loan with as little as 3.5% down.<br/><br/>content removed due to self promotion, violates good neighbor policy Thu, 06 Oct 2011 04:12:00 GMT http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ 2011-10-06T04:12:00Z Put together a time line ... http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ Put together a time line for achieving your dream of home ownership. It isn't going to happen today or tomorrow.&nbsp; It may be several years.&nbsp; &nbsp; Review your financials details with a lender in person (to a level of detail you wouldn't want to do in a public forum).&nbsp; The medical bills a month after discharge are a biggie.&nbsp; If you have a strategy for improving credit, saving up a substantial down payment and knowing what is realistic then you can work to that plan.&nbsp;&nbsp; Now isn't a good time to be looking at houses.<br/><br/> Thu, 06 Oct 2011 03:53:00 GMT http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ 2011-10-06T03:53:00Z unlikely to be able to do ... http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ unlikely to be able to do anyhting for another year or two ...maybe longer Thu, 06 Oct 2011 03:36:00 GMT http://www.zillow.com/advice-thread/Obtaining-a-Mortgage-1-year-after-bankruptcy-discharge-advice-please/418261/ 2011-10-06T03:36:00Z