Home Buying in Waukegan>Question Details

jayflavorz69, Other/Just Looking in Waukegan, IL

I filed a bankruptcy in 2012, About how long do I usually have to wait to buy a home?

Asked by jayflavorz69, Waukegan, IL Fri Jun 21, 2013

Help the community by answering this question:


CH 13 one year with what other conditions? Can a person have a 65% DTI? Or in a job less than one year. And what about cash reserves requirement? Geeez, Hard for a non bk buyer to get a loan, and frankly I am ok with someone having to wait longer than 2 years for the privilege of home ownership. Not a right, a privilege.
0 votes Thank Flag Link Fri Nov 22, 2013
They need to have made all of their payments on time for 12 months and have a letter from the court saying they can obtain a new mortgage.

Usually max DTI is 55%, with lower credit scores it is usually less at 43%

They need to have been working in the same line of business for at least 2 years.

Cash reserves, usually about 2 months PITI
Flag Tue Nov 26, 2013
It depends on the type of bankruptcy:

Chapter 13: 1 year from discharge date

Chapter 7: 2 years from discharge date

If you have any other questions feel free to contact me.

Thank you,

Ashley Pimentel
Market Place Mortgage
Lombard, IL 60148
Phone: (630) 217-7013
Fax: (630) 396-3698
0 votes Thank Flag Link Fri Nov 22, 2013
Depending on your credit score, and the amount you have to put down, you may be able to get a mortgage in as little as 2 years. You'll need to check with a lender to see. If you have access to a Credit Union you may want to speak with them as they may be willing to work with you when a traditional bank will not.
0 votes Thank Flag Link Fri Nov 22, 2013
Aside from credit score and time, you need to have low debt to income ratio, under 45% and consistent job history and wages. Having cash in bank isn't great either, banks are wise to strategic sellers and scammers... Scenario, After owner bankrolls the mortgage payments for 18 months instead of paying bank payments house goes to foreclosure and that seller uses a BK defense and has 50k in the bank. Also if you were unemployed in the last 18 months that would be tough...
0 votes Thank Flag Link Fri Nov 22, 2013
Talk to a mortgage lender, but what I am told by most lenders is that it must be 24 months from the discharge date. And, of course, you need to get your credit score back up. 640 right now seems to be the magic number right now, but subject to change. And they don't usually allow any late payments on new accounts post bk.
0 votes Thank Flag Link Fri Jun 21, 2013
Typically 4 years. A lender will be able to tell you a better time frame. It will also depend on your credit score
0 votes Thank Flag Link Fri Jun 21, 2013
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