How long after a bankruptcy can you get a mortgage at a norm

kimmer, the period is 4 years following the discharge or dismissal of a bankruptcy.

what you'll want to do in the meantime is to beef up your credit score with at least 3 creditors. any late payments will have a negative effect on the score, but even more important, late payments after bankruptcy will stick out like sore thumbs when underwriters view them.

bump your score as high as possible after the bankruptcy, to a minimum of 620 if you want conventional financing; or 580 if you are looking for fha financing.

keep in mind that guidelines are forever changing, so anything said today could be completely different by the time the 4 year period ends.

If my score is above 580 already, actually my experian is at 690 then I just need to wait and wait for 2 to 4 years? I just applied and got approved for a unsecured credit card so that will help me increase my score I guess. Does everyone qualify for the FHA financing?

not necessarily...fha doesn't do investment loans, for example.

i guess your bankruptcy had to have been less than 4 years ago, for your score to have run so high already. i figured you were talking about a recent filing.

It is a recent filing, Oct. 08 it was discharged. I pulled my report because my attorney said that he doesn't fix your report of errors after. I am currently living in the house that I would like to buy, my brother took out the loan for me but I am finding from some lenders have said that if we had a land contract or something actually attaching me to the home I could get a loan sooner. I have been paying the interest only payments for 4 yrs. It took me 3 and a half years to get a divorce... which is why I ended up filing. Basically I need a loan?!

i don't know what the land contract would add to it. guidelines are just that - supposedly, a lender can vary from guidelines on occasion. however, we have found that underwriters will not vary - there is a hardline attitude towards qualifying borrowers for mortgages these days. there've been too many defaults.

ok so even if I can get my score up I still have to wait a min. of 2 years to get a loan, regardless of score?

that's my stance, yes.

Currently own a home and filed chapter 7, never missed a payment, never late, how long must we wait to sell the current house and purchase a new one. We live in Wisconsin 2 years? Or what option might we have to do this we kept our house and cars but filed and cleared all crdit debt etc..?

Hi mc nally,

As far as selling the house is concerned, I think you will be able to sell it off once your bankruptcy is discharged. But as you have filed chapter 7, you will have to wait for 2 years from discharge to get a FHA loan. And for conventional loans, you'll have to wait till 4 years after discharge. So if you want to purchase a property with a FHA loan, you can do this after 2 years of the discharge of your bankruptcy.

Thanks,

Jerry

I recently file bankruptcy ( jan. ) I never pay my mortage late and i never pay my car loan late. Do i have to wait a certain length of time to get out of this interest rate only or can i do a FHA loan that do not care about your credit score or bankruptcy. My mortage company say that there a program that i can go into to get my mortage payment down but the can not speak to me about until my bankruptcy lawyer sign a paper that they fax to him. Do you know what they are talking about.

Hi aimee,

What type of bankruptcy have you filed? If you are under chapter 13 and have been making the mortgage payments on time, you may be able to modify your loan to lower the interest rate. It is allowed under the bankruptcy laws, but is subject to the trustee's approval. You can discuss this with your bankruptcy attorney. He will be able to give you more information on this.

I have been in bankruptcy since Oct 2007.Experian shows my credit rating as 713.As of 2 weeks ago.Equifax showed it as 651 about 4-5 months ago.Is there anyway that I can apply for loan for some home repairs.I am in chapter 13 paying 435.00 a month

Hi Janlee,

Lenders do not generally approve your loan while you are still in bankruptcy. You should wait for at least 2 years after a bankruptcy discharge to qualify for a loan. However, a few lenders are also said to offer loans even in bankruptcy, if you have made satisfactory payments as per chapter 13 plan for the past 1 year or more. Since your credit scores are good, you may have a chance to qualify for a loan. However, most lenders would not give you a loan in this market situation.

Thanks,

Jerry

You have to wait a min of 2 years after a chapter 7 bk discharge, and typically 2 years, after the FILE date of a chapter 13

I have one question to ask that. I have filed Ch. 7 in June 18 08 and it was discharged in 2008 of oct. when a person can start looking for a home and a loan. Does this mean in 18 month to 2 years before a person can start applying a loan to buy a first time home? Thank you