Home Buying in Pembroke>Question Details

Gary, Home Buyer in Pembroke, NH

I am desperately trying to find a way to apply for a mortgage. I had a bankruptcy (divorce) which will be two years from discharge in Jan 2012?

Asked by Gary, Pembroke, NH Sat Jun 18, 2011

My wife (remarried) has excellent credit and currently owns a condo. Her debt to income was way out of whack but we have made great improvements to this recently. She could be approved for 175,000 with 25,000 down on her own but my income would help us in so many ways. I keep getting you have to wait 2 years but am reading stories to the contrary. We would be in a better position to be where we want to be with my income included. I have lived there and paid half of everything for almost three years now. Is the two year thing what I HAVE to wait for or is there another option?

Help the community by answering this question:


Gary the person you need to ask is a loan officer, anyone else is just guessing without seeing your credit report and financials, the bets advice is to meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there are any programs that you may quailify for. Some programs may have minimum dates from bankrultcy but not all, it will depend if you re-established your credit. good luck
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Jun 20, 2011
Less than 2-years is acceptable if the cause of the BK was due to extenuating circumstances.

The situation of a BK caused by divorce unfortunately isn't an extenuating circumstance.

If, for example, you got divorced and had joint debts, and the joint debts were named the sole responsibility of your ex-spouse in the divorce decree, and the ex-spouse filed BK, and so those joint debts also were listed as included in BK on your credit report - the the divorce decree would be needed to prove to the new mortgage lender's underwriter that those were the ex-spouse's sole responsibility and should not be held against you when considering you credit-worthy. However that isn't the same situation as filing BK yourself.
0 votes Thank Flag Link Sat Jun 18, 2011
The rule is 2 years for FHA financing. The only time that can be waived is extreme circumstances and I can tell you from personal experience there really is no chance in the mortgage environment that we currently exist. Any chance you have a family member who could be a non-occupying co-borrower? FHA allows for this for qualifying purposes and then one you hit the 2 year mark you could do a rate and term refinance to get this person off the loan. If you want more info I would be willing to help. Jonofrio@annie-mac.com. Hope this helps!

Jeff Onofrio NMLS#38670
AnnieMac Home Mortgage
0 votes Thank Flag Link Sat Jun 18, 2011
Hi Gary!
Interestingly, I just had this question from a client of mine. In researching this I was told that the banking commission requires a minimum of 3 years post discharge before having a new mortgage. I am not a banker and don't want to give financial advice but can connect you with the right people who can. Additionally, have you considered a rent to own situation? I currently work with this type of product and would love to explain how it works. Basically part of your rent every month goes to your down payment. When your discharge is at 3 years you could easily have a great down payment and additional purchase power. I would be happy to answer additional questions you have. Please feel free to contact me at 603-391-5382

Sandy Grimes, Realtor
0 votes Thank Flag Link Sat Jun 18, 2011
Hi Gary

I understand your frustration, and as far as I know 2 years is the rule, but I do have 2 great people I work with that could answer that question for you. If you can email or call me I can give you the numbers or I can have them call you.

Tracey Guy
Prudential Verani Realty
0 votes Thank Flag Link Sat Jun 18, 2011
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