Posted on: 19th Mar, 2013 10:57 am
I am in California and my Ch 7 was discharged 2 years ago.
I was able to keep my house as there was little equity at the time. I have found a buyer and want to sell so that I can purchase a smaller house had halve my mortgage. I will have 1/4 down on the total purchase price after sale.
I also have a large steady income as a tenured college professor (that has been supporting a huge mortgage for 11 years and so am more than capable of carrying a loan that is half of what I have been paying). I chose not to ever take out credit cards again (have been without them for 4 years now and feeling very liberated). I don't know my credit score currently.
Will I be able to find a decent conventional loan on an existing house or a construction loan for a lot I may purchase outright?
I was able to keep my house as there was little equity at the time. I have found a buyer and want to sell so that I can purchase a smaller house had halve my mortgage. I will have 1/4 down on the total purchase price after sale.
I also have a large steady income as a tenured college professor (that has been supporting a huge mortgage for 11 years and so am more than capable of carrying a loan that is half of what I have been paying). I chose not to ever take out credit cards again (have been without them for 4 years now and feeling very liberated). I don't know my credit score currently.
Will I be able to find a decent conventional loan on an existing house or a construction loan for a lot I may purchase outright?
First of all, you must check your credit report. Though staying away from credit cards is a good habit, yet you need to show a good credit history and for this you may take out a secured credit card, and use it wisely to add up to your credit history as well as improve your credit rating. Once your credit score gets somewhere in the range of 640-700, then you'll be able to qualify for an affordable mortgage loan and that too at comfortable terms and conditions.
Hi melinda,
After 2 years of Chapter 7 discharge, you can get qualified for a FHA loan. In order to get a conventional loan, you will have to wait for 4 years.
After 2 years of Chapter 7 discharge, you can get qualified for a FHA loan. In order to get a conventional loan, you will have to wait for 4 years.
While it is great you have avoided having bad debts, having a credit card and never being late on the payments is one way you can improve on your credit scores.