Financing in Los Angeles>Question Details

Christian, Home Buyer in Rancho Cucamonga, CA

Looking to move to Downtown LA and buy a condo but..

Asked by Christian, Rancho Cucamonga, CA Wed Jul 4, 2012

Hello, I am planning to move to Downtown LA by February 2013 and have started to research the area. I would like to buy a condo for less than $200,000. My problem is I had a short sale in 2008 and had a Chapter 7 BK discharged in February 2011. I was told by an Agent that I would qualify for financing in 2 years so by February 2013 I should be able to qualify. My Fico and credit has been excellent since then. I am planning to put 20% down with an extra 1 year in reserve liquid assets. Would it be possible to get financing?

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Hi Christian:

Actually you will find that almost every if not all lenders require that you must wait 3 years after the date of discharge of a bankruptcy before they will consider financing you for a home. The only way around this is a private lender NOT a bank. Of course with a private lender you will pay a higher rate and fees. If you are interested just give me a call

0 votes Thank Flag Link Mon Aug 27, 2012
Do you have a loan person?
It is 4 years for the BK issue from what I believe... They will know
0 votes Thank Flag Link Wed Jul 4, 2012
You have 2 issues here to contend with and I will assume there were no extenuating circumstances involved in either the BK or short sale.

Regarding the short sale, the conventional guidelines are 2 years with 20% down so you will qualify in that aspect with reestablished credit. The problem is the BK7 with conventional requires 4 years from discharge. This means conventional is out for 4 years. (Again assuming no documentable extenuating circumstances.

With FHA, you have to wait 3 years because of the short sale even though the BK7 allows a 2 year waiting period.

When you combine the guidelines, the soonest you will be able to repurchase without extenuating circumstances is 3 years with FHA financing.
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0 votes Thank Flag Link Wed Jul 4, 2012
That is only part true. The key is what is your credit score and also, did you have lates on your shortsale. If you remained current on your payment all the way through your shortsale, you could buy immediately through fha but the bk is another story. Talk to a loan broker, not a bank teller and give them your situation. BTW.. I am one of the few "original" downtown LA brokers. I have sold in every building and know them all in detail, even behind the scenes stuff on most. When you get your financing questions resolved, I would be more than happy to assist you on the loft purchase. Please keep me in mind. Happy and safe 4th of July!
0 votes Thank Flag Link Wed Jul 4, 2012
My middle Fico is now 661. I was late on my short sale, but it has been 5 years ago. I short saled in 2008. I just read online where its only 2 years after discharge for fha financing, but I was also told that the condo buildings must be approved as well. What does that mean? Which ones are approved?
Flag Wed Jul 4, 2012
At this point in time, no. You'll need 4 years from the discharge date to qualify. Sorry!
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0 votes Thank Flag Link Wed Jul 4, 2012
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