Financing in Atlanta>Question Details

Katisha Chase,  in Atlanta, GA

I am in a Chapter 13BK and will be done with it in the next 6 months. How long would we have to wait or do we have to wait to purchase a home?

Asked by Katisha Chase, Atlanta, GA Mon Feb 11, 2013

My husband has a VA certificate to purchase a home and we have never used it. He is self employed. I am an in the accounting field and have been for the last 25 years, however I have only been in my most current role for the last 5 months. He has been self employed at least 2 years with income being put in the bank.

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Robert Robbins’ answer
Rodney is all over this one. The only thing I would add is most banks are going to want to see re-Established Credit. At least 3 credit lines open for a year since the BK started. If you RE-Affirmed some debt, these can count towards this. If you wrote everything off you will brand new ones (secured cards are a great way to go) also know you will still need to have credit score to support the purchase as well FHA and VA are going to be approximately 640+

Last question though? did your BK involve a home? if it didn't no worries. But if it did then you are looking at following Foreclosure Rules and not just BK rules.

I hope this helps,

Best Wishes,

Rob Robbins
Senior Mortgage Consultant
Cornerstone Mortgage Group
6151 Powers Ferry Road NW
Suite 610 Atlanta GA 30339
Office 678-578-7613
Cell 404-932-5353
1 vote Thank Flag Link Mon Feb 11, 2013
If you utilize your husbands VA eligibility, the waiting period is 2 years. If the BK included your home or any other real estate, the waiting perod is 3 years. Call me so I can help you!!!
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0 votes Thank Flag Link Thu Feb 28, 2013
Ms. Chase,

I am a licensed Georgia Loan Officer and I can tell you that if you want to use your husband's VA Certificate of Eligibility then you would have to be out of the bankruptcy for two years. If you have 3.5% down payment if might be possible for you to purchase now using a FHA mortgage. Please call me for further details.

Kindest Regards,

Lisa Cunningham
NMLS # 401505
Licensed Georgia Loan Officer
Licensed Georgia Real Estate Broker
0 votes Thank Flag Link Mon Feb 11, 2013
FHA/VA mortgages are the least restrictive for a previous bankruptcy. HUD requires that a minimum of 24 months must have elapsed from the DISCHARGE date of a Chapter 7 Bankruptcy before a borrower can be eligible for an FHA or VA mortgage.

For a Chapter 13 Bankruptcy, then you must have made at least 12 on time payments. Additionally, you must also have permission to purchase from the Bankruptcy Court.

In the time since the Bankruptcy, there should be no new derogatory items such as late payments, collection accounts, liens, judgments, etc. Having late payments after a Bankruptcy is often viewed as a disregard for the importance of credit. It also reflects that you are still having financial struggles.

If a mortgage was included in the Bankruptcy, HUD requires that you must wait at least 36 months from the foreclosure date to be eligible for an FHA or VA mortgage. Sometimes, the foreclosure happens well after the Discharge Date of the Bankruptcy. If the mortgage was not re-affirmed, there is not much that can be done until the property get foreclosed on.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Mon Feb 11, 2013
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