Depending on the BK and re-established credit the typical waiting period is 2 - 3 years. Banks will use the mid score from the weakest borrower to determine rates & programs. The only way to know for sure is to talk to a local lender and discuss your details. They will need to know the type of BK (chap 7 or 13), the level of re-establishment of your credit, your husbandâ€™s mid score and the rest of your application.
We have seen several individuals in your same situation-the Bankruptcy time table also depends on whether a house was part of the bankruptcy. I have a lender that will work with you and your individual needs and if need be they will keep the loan in house. So first would get with a Realtor-Lender team and see exactly where you are by submitting a loan application. Sometimes some small things can be done that will positively impact your credit score quickly.
As far as down payment and closing costs-that will depend on where you are lookingfor a home, to determine the type of loan. Would be glad to explain all of those to you .
Sonia Roberts, RealtorÂ®
"A satisfied customer is the best business strategy of all."
For Chapter 7 you have to wait two years from the discharge date in most cases. It is very important to have reestablished credit with no derogatory credit since then. If you can show you have 3 credit ratings at least 12 months long on your credit report and also show 12 monthsâ€™ rent payments then you are GOLD. You can do with less credit ratings if you can show alternative credit, i.e. PGE, Gas, Phone, Ins, cable, etc paid on time 12 months. The lender wants to see that you have the ability to make your payments on time and this will do it. We need at least 580 FICO, but it would be much higher than that if you reestablished credit.
If there is a foreclosure you need to wait 3 years from Trustee Deeds date. If you are a Veteran it is a 2 year wait.
Mark R. Barrett
DRE LICENSE #: 01438387
NMLS #: 279056