Posted on: 22nd Jan, 2008 08:06 pm
My husband and I filed a chapter 13 in Feb. 2006. We have been renters up until this point. We now have 2 children and really need to make a home purchase but dont know if we will even be considered while we are in a chapter 13. I understand that I will have to obtain permission from the trustee..but even with that, its it possible for someone in my shoes to get a loan? I was thinking FHA loan.......can anyone help? I dont know how/where to get the answers I need.
Welcome Kristy.
It is possible for you get a loan but you need to take the approval for applying for a loan from the bankruptcy court. And, you will have to provide the lender with papers related to the bankruptcy.
Generally lenders require a borrower to have at least 2 years of payments in chapter 13 plan after having filed bankruptcy. In your case, the 2 year period isn't over but just a month is left. So, yes, you can start shopping for a loan in February and while lenders look into your financial situation and credit worthiness which would improve since you opted for chapter 13 and tried to repay the loan, they will also consider the equity you've built through the payments.
You can look out for FHA loans. Recently the government has reduced the down payment requirements as well as increased the county-wise loan limit.
Thanks.
It is possible for you get a loan but you need to take the approval for applying for a loan from the bankruptcy court. And, you will have to provide the lender with papers related to the bankruptcy.
Generally lenders require a borrower to have at least 2 years of payments in chapter 13 plan after having filed bankruptcy. In your case, the 2 year period isn't over but just a month is left. So, yes, you can start shopping for a loan in February and while lenders look into your financial situation and credit worthiness which would improve since you opted for chapter 13 and tried to repay the loan, they will also consider the equity you've built through the payments.
You can look out for FHA loans. Recently the government has reduced the down payment requirements as well as increased the county-wise loan limit.
Thanks.
If you making your BK payments and your debt to income ratio is good you can get a loan but im not sure about FHA loan.
it's actually 1yr..and everything needs to be on time.
You will need to find a lender that can do this...and your average lender/bank will not be able to. Find a local broker that works with BK loans..and he/she will be able to instruct you as in what to do.
You will need to find a lender that can do this...and your average lender/bank will not be able to. Find a local broker that works with BK loans..and he/she will be able to instruct you as in what to do.
