So, my client did get his house. He was very happy about everything except the increased payments on the bankruptcy. His lender was terrific - Jim Langdon at Homebuyer's Assistance, phone # 916-717-5626.
â€¢ You can be still *in* a Ch 13 BK with FHA, USDA or VA financing, it is just required that:
- one year of the pay-out period under the bankruptcy has elapsed
- your payment performance has been satisfactory and all required payments have been made on time, and
- you have received written permission from bankruptcy court to enter into the mortgage transaction.
â€¢ If it was a dismissed BK then 2 years from the dismissal date for FHA or VA financing (3 for USDA)
â€¢ Fannie Mae & Freddie Mac require 2 years from discharge date & 4 years from dismissal date (2 years from dismissal with extenuating circumstances)
However you need at least 12 months of re-established credit and 3 traditional trade lines, some lenders want 3 trade lines of 12 months each. Trade lines that survived a BK, such as a credit card you kept open, a car loan you maintained payments on/didn't include, student loans that you are making payments on that couldn't be included, etc. can count towards the re-established credit.
Having a verifiable on time housing payment history goes a long way to making an underwriter feel comfortable, as well as taking a pre-purchase housing counseling class with a budgeting/financial module. Practically anything you can do to prove that you have made & kept a vow to make all payments on time will be helpful.
Please see my blog with tips on getting a mortgage
Chris Stahl at Summit Funding is working this weekend and he's my go-to guy. he can be reached at (916) 768-8000. If you can't qualify now, it's not too early to work towards rebuilding your credit so either way, he should be able to give you good advice.