Hi Vanessa -
If you haven't had your question answered yet, I'd be happy to help. Luke's answer is the best so far. You will only know for sure if you have your application run through the automated underwriting systems. If it is not approved through that method, you can not be approved until you’ve gone 2 years since the bankruptcy discharge. If you were not on the mortgage that was foreclosed upon, then when you are past your two years you will be the only one that can be on the loan. So you will have to qualify based upon your credit and income alone. Having your credit run will not be a huge hit to your credit scores and it is the only way to see what you can do. After 60 days, it will not be a negative on your scores any longer. The credit score you are referring to may not the score we would be looking at for mortgage qualifying if you got the score by obtaining a consumer credit report. They use a different scoring model now that is not directly correlated to the mortgage scoring models used. However, pulling the consumer reports is a good way for you to keep tabs on what is going on with your credit and disputing items that should be disputed. It is very helpful to work with a lender who is knowledgeable about how to work with your credit report to maximize your scores. Planning ahead is also a great idea. If buying a home as soon as you are two years removed from the BK discharge is an important goal, then working with a mortgage professional to plan for that event is the best thing you can do to help you attain your goal. Let me know if I can be of any help!

Brian Cardenas
President / Mortgage Consultant
Antigua Capital Funding
(480) 515-1491x1

Hey Vanessa...

In all honesty, what do you have to lose by consulting with a good Loan Officer and allowing them to pull a tri-merge credit report? A couple of points on your FICO scores? What if you were to find out that there was indeed a way to buy a home in the near future? Is it worth it?

As I said before, nobody on this forum or ANY forum for that matter can answer your question. Only you can decide to 'face the dragon' and talk with a reputable lender. And once again, I would be more than happy to recommend a great one - just email me privately.

Warmest regards,

...randy

Randy Hooker
Buyer's Broker

I just pulled my husband's credit and it's a 710 with experian. There is something on there that I am disputing, so it may be even a bit higher. Will it hurt our credit to run it? Every point counts at this time for us. Do we really have a chance at all due to the bankruptcy AND Forclosure? Thank you all for your guidance.

Vanessa-

The FHA guildeline for Bankruptcy is as follows:
"Borrowers with a bankruptcy discharged within the past two years will not be approved without an
Approve or Accept response from the FHA Total Scorecard."

What that means is that when an FHA loan is submitted for approval, you get 1 of 2 repsonses: Approve or Refer.

Under normal circumstances a Refer response simply means that an underwriter has to manually approve or deny the loan. But in this case, the underwriter would be obligate to deny the file.

I think that your best bet is to simply go ahead and try and apply. What do you have to lose? You would know in about 10 minutes.

I would be more than happy to run your file for approval and let you know if you can get approved. I only need a few minutes. Thanks.

Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com

Apply Online: flagstarloans.com/lallison

FHA loans have the most lenient guidelines. On a conforming loan you have to be at least 2 years since the discharge of a bankruptcy and 5 years from foreclosure.

On an FHA loan, the guidelines state that 2 years must pass from the bankruptcy discharge and 3 years from the completion of a foreclosure or deed in lieu of foreclosure. The guidelines provide for exceptions to be made if their were extenuating circumstances causing the BK or foreclosure, but the only things an underwriter normally illness or permanent disablity, or death or disablity of a spouse/co-borrower. A failed business is classified as "financial mismanagement" and is thus subject to the full waiting period.

So it sounds like you are SOL right now, but the fact that your credit scores appear to be OK signifies that you have worked hard to re-establish good credit, and that will go a long ways towards getting you approved in a year or two. Best of luck!

FHA is pretty strict about being 2 years our of BK. Your close :) so hang in there!

Keep up the good credit, NEVER make a late payment, and keep some money in the bank.

Hi Vanessa!

I'm sorry it's been such a rough few years for you. As much as I'm sure you would like to have a simple Yes or No to your question, I'm afraid there's nothing simple anybody can say. The true answer as to whether or not you and/or your husband can qualify for a mortgage loan at this time is, "It depends!" It's possible that you could qualify on your own. It's also possible that within 6 months you guys will be able to qualify together.

The very best advice I could give you is to consult with an experienced, reputable, local mortgage lender. A good loan officer will be able to give you a complete assessment, at no charge, and otherwise let you know exactly where you stand and what your options are. If you would like to discuss your situation further, please feel free to contact me. And if you would like to have the name and contact info for one of the finest loan officers in the state, just let me know.

All the best to you, Vanessa!

...randy

Hi Vanessa,

Contact me and I can connect you to a financial adviser that has helped many of my clients. A simple phone conversation should answer your questions.