Keane information and advice is correct. Its a 2 year wait period from the date of discharge for Chapter 7. 3 years for foreclosures. So even though you may be discharged from the Chapter 7, if there was a joint (included in the chapter 7) or separate foreclosures as well, you have another 12 months to go at least.
Once you're out, you'll need a LOX (letter of explanantion) explaining how and why the chapter 7 and foreclosure happened. Lost of a job due to a lay off or company closing, cut in pay, divorce, debilitating health issues are the most acceptable reasons.
If you do have another 12 months to wait, you should be doing what you can now to make certain your score and history are as high and spotless as possible. Furthermore, make certain you don't fall behind on any other open credit you may still have. Key note to remember is that any lates or collections that happen after a bankruptcy or foreclosures is heavily frown upon and will more than likely kill any and all chance of you getting a mortgage.
If you're renting right now, make certain you're never more than 30 days late. A clean and 12 months or longer rental history is looked upon as a mortgage payment by underwriters, and the strongest indicator of your ability to responsibily honor a new mortgage. Especially if your present rental payment will be comparable to your future mortgage payment.
If you need any further assistance I'm a local direct lender who specializes in FHA financing and credit restoration. The latter service is free and available to you if you wish me to assist you further.
Rudy R. McDowell / Senior Loan Officer
770 S Adams Birmingham, MI. 48009
o: 800-678-6663 Ext 5154 / f:248-594-6156 /d: 313-410-1344
"Referrals are the Best Indicators of My Service and Your Satisfaction"
2 years for a chapter 7 bankruptcy
3 years for foreclosure or shortsale (Shortsale may not have that long of seasoning depending on your scenario, see this blog post for more details - http://www.keaneloans.com/2009/12/22/how-long-do-i-have-to-w )
no seasoning required for chapter 13 bankruptcy if all chapter 13 payments in the last 12 months were on time.
Keep the good payments on the two loans you have. Keep the balance of your credit card low to keep your score higher.
I would also check your credit right now and make sure it's accurate and see what your score is. If you're serious about buying, I would begin monitoring your credit with one of those credit monitoring services. The cost is usually $20-30 a month and you're notified of all changes to your credit as well as a credit report once a month (for most services). I use TrueCredit which is Trans Union. Even though they're owned by only one of the bureaus, I do get updates for all 3 scores.
The only drawback is that FHA 30 year loans have mortgage insurance INCLUDING if you put 20% down. Since you have a larger down payment, I would consider getting a FHA 15 year loan which only requires 10% down to avoid monthly mortgage insurance. The lower rate and lack of insurance makes the payment only marginally higher and will pay off the house faster.
All conventional programs take longer than 3 years from a foreclosure. If you're a military veteran, the same seasoning requirements apply except the VA doesn't have specific guides for buying after a shortsale like FHA.
Google FNMA underwriting short sales for 8/08 update to provide you a better and clear understanding.
First Weber Group
Certified Distressed Property Expert
Glad that you are back on track with hard work and being careful to be a new you. Proud of you.
It might depend on the current credit score.
You can send an email to firstname.lastname@example.org and I can put in touch with the mortgage broker that we use for most of the transactions. He can walk you through.
I believe the rule of thumb was two-three years out of bankruptcy/foreclosure before they look at anything. If you have a hardship reason why you went through that, (divorce, family medical issues, ect), a local bank may look into you other contributing factors like 20% down and no late payments for the last two years and bend the rules slightly. This usually only happens when you credit has rebounded, you have a strong work history, and with a bank that will keep the loan in house, (called portfolio).