I'm a little over a year out from a chapter 7 bankruptcy and want to purchase a home. The selling price of the property is 125,000. My wife and I

John
Home Buyer
Williamsburg, IA

have stable jobs,no debt,and about $45,000 cash. Is there a lender we can get financing from?

Answers (2)
Robert Chomento...
Mortgage Broker
or Lender

San Diego, CA

Carl gave you good advice. The standard rule is you have to wait 2 years from the discharge of a BK 7 to be able to get a loan. Make sure you check the discharge date, as sometimes that is a year after you start filing for a BK. Getting a lender allow you to get another loan before 2 yrs is rare. The extenuating circumstance has to be severe (sever illness, death of an income earning spouse, etc...) and you have to document it. Losing your job would not be considered an extenuating circumstance for example.

Make sure you re-establish credit and do not have any derogatory credit post BK.

Mon Sep 28 2009, 21:09
Carl Snyder
Mortgage Broker
or Lender

San Diego, CA
FIRST ANSWER

You may be eligible for an FHA loan after one year has elapsed from the date of the Chapter 7 discharge, by: 1.) re-establishing good credit or choosing not to incur new credit obligations,
2.) show that the bankruptcy was caused by extenuating circumstances beyond your control, and
3.) demonstrated a documented ability to responsibly manage your financial affairs, and
4.) that your current situation indicates that the events that led to the bankruptcy are not likely to recur.

Mon Sep 28 2009, 13:46

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