Normally, you will need to wait two years after discharge for conventional or FHA financing. If you are planning on moving within Des Moines, consider the Neighborhood Finance Corporation (NFC). They do not exclusively use the standard credit models and fico scores to qualify for their loans. Their number is 515-288-5626. Even if you can't do something now, you will know exactly what you need to do for the future. Plus, you can get up to $10,000 to improve the home that you buy. Contact us when your ready, thanks.

Hi!

I would love to help you qualify for a loan. I work with about four different lenders who all do a tremendous job finding the right loan for my clients. My niece, Michelle Sproul, wrote a perfect answer to your question. She encouraged you to contact me for further assistance in the Des Moines metro area. Let me know what I can do to help you.

Best wishes,

Roberta Brink
REALTOR
Licensed in Iowa
Iowa Realty
80 E. Laurel St.
Waukee, IA 50263
(515) 453-6130
(515) 453-6126 (fax)
Please visit my web site at http://www.RobertaBrink.com
"Don't Make a Move Without Me!"

Hi,
If you would like to talk to a Des Moines area mortgage professional I have a great (and incredibly knowledgeable) one that I can recommend. I understand that your situation is frustrating. Hope you are getting the answers that you are looking for. Please feel free to contact me anytime.

Thanks!
Amber Salmon
Prudential First Realty
515-453-7635

The answer is most likely yes. Using one income to qualify as Jacqueline mentions is probably your simplest option. If you can use only your credit history and income to qualify for a home you can live with, there are many options for purchasing. Iowa does require that even though only one spouse is used to qualify that both spouses are on the end mortgage but this can often be in name only and may not affect rate and qualifying. Often the best option in this situation is an in-house ARM loan with a local lender that is locked for five years or more. This gives you time to clean up the bankruptcy issue and refinance if you choose, without being penalized terribly on the rate. The University of Iowa Credit Union in the Iowa City area (you can call Kim McCoy at 319-341-4502) offers some great options on ARMs, one with a 10 year rate lock at extremely competitive rates (had a client get a 5.125 rate on this the other day with great credit and 5% down). You may still have a lender that does these in the Des Moines area too, so your best bet is to talk to a Realtor there and see what their experience has been locally. My aunt Roberta Brink is an agent there based out of the Waukee Iowa Realty office and would happy to help you, her contact information can be found here: http://robertabrink.iowarealty.com/index.php.

Purchasing a home on contract is also an option. Although I would be hesitant to recommend it because you are leaving a lot to chance when another private individual holds the mortgage on the property. Your rights are limited if they should suddenly stop paying on the home and it would enter foreclosure.

Hi Andreas,

The time limit depends on a few factors:

1. The type of chapter filed,
2. Whether your husband was self employed or w2;
3. Why he resorted to bankruptcy - was it due to a medical event?

You may be able to get a loan 12 months after the bankruptcy (BK)is discharged as long as you have re-established a positive payment history. However, the BK must have been due to an extenuating circumstance, i.e, sudden illness, natural disaster, etc.

You will have to write a letter of explanation to describe what happened and why it was an isolated event.

Also, do you need both incomes to qualify? If not, then you can possibly get the loan on your credit and income. If he makes more money and you need both incomes then you're back to explaining the bk and hoping you'll find an underwriter (the person who reviews your loan application and makes the final decision for the bank) who will go outside the box and approve your loan.

These exceptions can be made by the bank and not all banks will consider a loan soon after BK. You just need to find a mortgage broker who believes in your application and will try to find a bank that will approve a loan based on your circumstances.

Also, banks will make exceptions if other areas of your application are strong. For instance, low debt to income ratios, low loan amount versus the equity (value) of the property, large down payment, strong work and rental history. They consider the whole kit and kaboodle.

Ask your mortgage broker to research bank/lenders that will lend to borrowers with recent BK's; they're out there but be forewarned the rates will be higher than the average 30 yr mortgage.

Good luck,
Jacqueline Clarke
Down Payment Assistance Specialist/Loan Officer
Enterprise Mortgage Group
Winter Park, FL
Direct: 407-739-3853
Email: jclarke@enterprisemortgagegroup.com

If it is just the husband who filed bankcruptcy, the wife with great credit should be able to apply for the loan and try to qualify on her own. I hope that helps answer your question, but still recommend you to consult with a loan officer. A loan officer would know more.