Gregorio (below) has given you the best advice here. Get with a mortgage consultant. They can give you a good idea of where you stand. They will normally give you a free consultation. If you were in my area I could send you to several mortgage consultants that could help. Good luck to you.
Bankruptcy will stay on your credit for 7-10 years and will prevent you from getting a home loan with traditional financing. If you want to purchase a home now and have the money each month to make payments - you will need to do some creative financing. Find a home where the seller will carry-back the loan. This is one way to get back into buying versus renting. You may call me to help find the perfect situation you are looking for!!!
A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from
obtaining an FHA-insured mortgage if at least two years have elapsed since
the date of the discharge of the bankruptcy. During this time, the borrower
â€¢ re-established good credit, or
â€¢ chosen not to incur new credit obligations.
An elapsed period of less than two years, but not less than 12 months, may be
acceptable for an FHA-insured mortgage, if the borrower
â€¢ can show that the bankruptcy was caused by extenuating circumstances
beyond his/her control, and
â€¢ has since exhibited a documented ability to manage his/her financial affairs
in a responsible manner.
A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an
FHA-insured mortgage, provided that the lender documents that
â€¢ one year of the pay-out period under the bankruptcy has elapsed
â€¢ the borrowerâ€™s payment performance has been satisfactory and all required
payments have been made on time, and
â€¢ the borrower has received written permission from bankruptcy court to enter
into the mortgage transaction.
TOTAL Scorecard Accept/Approve Recommendation
Lender documentation must show two years from the discharge date of a
Chapter 13 bankruptcy. If the Chapter 13 bankruptcy has not been discharged
for a minimum period of two years, the loan must be downgraded to a Refer
and evaluated by a Direct Endorsement (DE) underwriter.
Bankruptcy (Chapter 7 or Chapter 11)
A four-year waiting period is required, measured from the discharge or dismissal date of the
Exceptions for Extenuating Circumstances
A two-year waiting period is permitted if extenuating circumstances can be documented, and is
measured from the discharge or dismissal date of the bankruptcy action.
Bankruptcy (Chapter 13)
A distinction is made between Chapter 13 bankruptcies that were discharged and those that
were dismissed. The waiting period required for Chapter 13 bankruptcy actions is measured as
â€¢ two years from the discharge date, or
â€¢ four years from the dismissal date.
The shorter waiting period based on the discharge date recognizes that borrowers have already
met a portion of the waiting period within the time needed for the successful completion of a
Chapter 13 plan and subsequent discharge.
No conventional loans will require you to wait several years.
You will need more of a down payment for most seller carry financing scenarios.
Do you have a co-signor?
You may wish to contact a lender and find out exactly the things you need to do to improve your credit score and develop a timeline to apply for a mortgage.
Put some cash away. You may be able to buy a seller may carry financing home with 15-20% down.
If you have any questions just ask.
Jeff Masich, Realtor
Arizona Homes and Land