Tough questions. As you already know, you have challenges here. Usually the banks like to see 2 full years out of bankruptcy before considering any type of loan. You didn't say if you have owned a home before but I'm assuming that you'll be applying for an FHA, unless either of you were in the armed services and can get a VA loan.

Missing those student loan payments was probably not a great idea. Nothing is impossible but you'll have your work cut out for you. Read up everything that you can on how to improve your credit score. I wouldn't recommend a service - many of these just really want to get you on their monthly plan and suck you dry. You can do all the stuff they can by yourself - usually.

Definitely keep paying those credit cards off. But pay of the balance entirely. That's important. Since you "have 2 cards" I'm guessing that you had more and cancelled them - that probably hurt your credit. Seems counter-intuitive but it's true.

DO keep using your credit cards a bit - activity is good - but pay it all off and then pay them off each month.

Each of you should get 2nd jobs if you don't already have them - and sock away as much as you can (after paying all credit cards off). Don't eat out - bring lunch to work, live very frugally and "get your house in order".

Do you have to have 2 cars? Can you get by on one? The market will be good for you for quite a while - don't worry about "missing it" if you don't buy by Dec - what you really need is to seriously improve your credit, put away a down payment, have extra left over as a buffer zone, and demonstrate to all lenders that this was the year that you totally committed yourselves to new great habits.

A difficult question to answer even with the details you provided. Can it be done? Absolutely...!
Bankruptcy is not as difficult to overcome as some may think, but in this lending enviroment questions need to be answered and cleared.

I work with buyers such as yourself all the time. The key to re- establishing credit worthiness is to adhere to a strict plan, when you've had difficulties with credit in the past.
Even with your details provided the best way to provide a clean answer is to do a pre-qualification that takes only a few minutes. It is very possible you can obtain a mortgage even before Jan.
If you can take advantage of the low interest rates that are happening now it would greatly benefit you. In the past couple of days there has been a significant drop in rates below 5%...

You can call me if you like, but do not discuss too much personal info or any personal info over this forum or any other for that matter.

My phone is
609-868-1171
Larry Sarlo
Weichert Realtors
Turnersville, NJ http://www.searchcamdencounty.com http://www.NJHomeHunter.com

Unfortunately,credit score requirements are going higher all the time. For a conventionalloan you would need a 720 score and at least 20% down. The lender would also look at your work history--you would need 2 years at the same job. they also look at debt to income ratio. For an FHA you would need a 620 and 3.5% down. you would also need enough for closing costs,insurance,taxes(which are sky high in new jersey) and maintenance. will you have sufficient reserves if the roof or AC unit goes out? The only 100% financing left is VA and with 100% financing,your payments would be considerably higher than if you had a down payment. If you feel you can qualify under these circumstances,I suggest you sit down with a reputable local lender & discuss your options. Your other option would be to try to find some type of owner financing or lease purchase option.

good luck!

Odessa,

Your qualifications is based on your credit score and debt to income ratios. FHA allows qualified buyers to put a minimum 3.5% down. 620 minimum score required. There's plenty of things you can do to improve your score in the meantime if it is weak. Call me and I can offer you some specialized assistance.

Best Regards,

Jeremy S. Hill, Realtor Associate
Keller Williams Realty http://www.YourPhillyHomeSearch.com http://www.SouthNewJerseyHomes.com
Office: 856.685.1651
Direct: 609.876.5817
Fax: 609.482.8235
Licensed PA, NJ
"Your Interest 1st Always