The best approach to this is to meet with a quality lender and lay out the situation (If you've gone through Chapter 7 you've done that a few times - I hope your trustee wasn't a real #$&!!). A good lender can guide you to a gentle landing in this process and get you a good deal also. The key is good communication - with your lender; with your Broker; between your lender and broker.
Doing this is saving you money if the market increases in the next year. If it doesn't then waiting won't hurt.
My guess is the market will go up some. And now is the time to buy.
Save up your 20%, protect your credit and in two years you will hopefully be in a great position to purchase a home.
Tom Inglesby, Broker
RE/MAX Equity Group inc.
CRS, ABR, Earth Advantge Broker, CDPE
The first step you'll need to take is to talk with a good mortgage broker. You ability to buy a home will be dependent upon your credit score. This has been affected by your Chapter 7. Since I'm not a lender/mortgage broker, you should really talk to someone at this time.
I know two which I will refer:
Willie R Williams Jr
Wells Fargo Home Mortgage
14795 SW Murray Scholls Drive Suite 108
Beaverton, OR 97007
Toll Free 1 (877) 881-5531ext 1004
(503)590.3938 x 1004 Tel
(866)839-8072 E -Fax
First Priority Financial
(888) 206-5781 x 1017 Toll free
(916) 802-9743 Cell
(888) 206-5781 E Fax
Both "Williams" (no relation to each other) are VERY good, competent and knowledgable. I've worked with both, and they know their stuff. Please do yourself a favor, and contact them.
You will hear what you need to do in order to plan for a home purchase.
Carla Muss-Jacobs, Principal Broker/Owner
EBA Portland, LLC
Exclusive Buyers' Agent
Assisting Buyers in Metro Portland since 1999
Here are the guidelines regarding "Chapter 7" bankruptcy for FHA or Conventional financing. Keep in mind that credit guidelines continue to change so the information is based on today's rules:
HUD requires that a minimum of two years from date of discharge has passed AND good credit has been re-established. To get the best interest rate, lenders require a minimum qualifying FICO score of 660 or higher.
The wait period is four years from the discharge date. To get the best interest rate, you need a minimum qualifying FICO score of 720.
Both loan programs allow an exception to the wait period for cases with extenuating circumstances. Example, if the BK was the result of job loss, medical bills due to no insurance, disability etc. If you qualify for the exception, the wait is 1 year for FHA and 2 years for Conventional.
NOTE: differerent rules apply for Chapter 13 AND for consumers who have more than one bankruptcy within seven years.
All the Best,