Home Buying in Bakersfield>Question Details

Blanca Alvear…, Home Buyer in Bakersfield, CA

I actually athe end of my Chapter 13 Payment Prog my credit is @700's I have heard that I can qualify to purchase a home is that correct??

Asked by Blanca Alvear Rivera, Bakersfield, CA Mon Mar 31, 2014

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Yes, you can purchase a home after chapter 13 bankruptcy as long as you have sat through the waiting period and rebuilt your credit (which you have done). The length of the waiting period can depend on the type of loan you desire. You can obtain an FHA loan during a Chapter 13 bankruptcy as long as you have made 12 months of satisfactory Chapter 13 plan payments, but you must have bankruptcy court approval to get the loan. In the case of either an FHA loan or a VA loan, you must provide an explanation of the bankruptcy. Conventional loans have the longest waiting periods. If you want a conventional loan, you must wait two years after receiving a Chapter 13 discharge. If your Chapter 13 case was dismissed without a discharge, you must wait four years from the date of the dismissal. If you would really like a mortgage there are also hard money loan options that you can consider. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Thu Apr 3, 2014
Awesome thank you for all your help..
0 votes Thank Flag Link Thu Apr 3, 2014
A Chapter 13 bankruptcy has the shortest waiting period and you can certainly consult with a loan professional to determine your options now. Realize too that FICO scores play a part in eligibility so hopefully as you have completed your payment plan your credit has also been restored.

All loan approvals are an analysis of income, assets and credit. Good for you for getting your BK behind you and as you get serious about buying a home, a good loan professional will help you keep all of the qualifying criteria, not just the BK, in line so that you meet success.

Let us know if we can help.

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Thu Apr 3, 2014
Yes, that is correct. The underwriter will look at your Chapter 13 payment history, debt-to-income ratio, assets, credit scores and stability of income, to determined your qualification for a mortgage.

Best regards,

Elva A. Wormley
Mortgage Consultant
Office (408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / BRE #01274093
0 votes Thank Flag Link Mon Mar 31, 2014
I'm a lender...and yes...you are able to qualify for a home loan 12 months into your repayment on a Chapter 13 Bankruptcy.
The BK Trustee must approve this.
As long as your payment history with the BK Trustee has been satisfactory, you will qualify for an FHA or VA home mortgage.
Good for you!!
0 votes Thank Flag Link Mon Mar 31, 2014
Riverafambam,
It might be. Only a lender with a full view of your entire situation can say for sure. There are programs that may accept you one day after chapter 13, so find a great local lender now. They will tell you what you may need to do to make sure you are fully prepared and qualified now, or sooner than if put it off.
0 votes Thank Flag Link Mon Mar 31, 2014
Thank You Dan I will do that..
It's true I would rather know now and work on everything now rather than wait and then find out later.. Thanks again..
Flag Thu Apr 3, 2014
Riverfam,
Your welcome. The reason I would encourage you to meet with a lender sooner rather than later is there is more than the BK and credit scores to be aware of. Sometimes, when I was a lender someone would show up when they thought they'd finalized everything only to uncover something they could have dealt with earlier. The new issue ends up delaying the plan to buy even further.
Because you meet with someone tomorrow, doesn't mean your shopping for a home the next day. The purpose for an early meeting is to verify what you believe you know and to find out what you didn't know. If you want to start shopping seriously in 5 to 6 months, I'd meet with a lender right away.
ownWir around
Flag Mon Mar 31, 2014
Dan,
Thank You for your words I was hoping to wait a bit since I only have 4 more payments left these were a long 5 years and am hoping to say those 600 a month and put away for a nice down payment... My curiosity always gets the best of me but I've been renting and I'm paying 1500 a month of rent.. so I think i'm ready!!!
Flag Mon Mar 31, 2014
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