You need the advice of a Certified Mortgage Planner who can give you credit repair advice. Certified Mortgage Planners are also well versed in creative financing.

http://www.cmpsinstitute.org/public/find_cmps
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Hi Jessie ~

Based on the information you provided, FHA financing will offer you the soonest opportunity to qualify for a mortgage. The wait after a Chapter 7 BK is 2 years from discharge. The waiting period after a foreclosure is 3 years an the soonest of all other programs.

To answer your question about credit ... there are ways to improve your credit score so the best thing to do is choose a mortgage advisor and allow them to run your credit report. Get answers to these questions and others:

1) what are your FICO scores now and where do they need to be? Shoot for a mid-FICO of 640
2) how many tradelines do you have and how many do you need?
3) can you use alternative trade lines?

The answer to questions 2 and 3 are different for each FHA lender. Some have rules that say a borrower must have at least 3 tradelines with a year of history. Other FHA lenders don't and may be OK with 1 tradeline. I recommend you choose a mortgage broker who has several FHA lenders so they can identify which of them has qualifying guidelines best suited for you.

One more important thing ... have you saved any money for the down payment? Based on your target price of $255,000 you should plan on $8925 which is 3.5%, FHA's minimum. If you don't have it, a family member can "gift" it to you.

To Your Success,

Barbara

Hi Jessie,

There is such a thing as what is called a "Rapid Re-Score". Some lenders have applications that scan your report to identify immediate opportunities to increase your scores. This service may require you pay down some balances from a $100 to $1,000's. By doing so, the lender can process the documentation showing the new balances and immediately have the 3 major credit bureaus increase your scores within 72 hours.

To start your process, I suggest working on your credit report first and that would allow you to put some definite marks on your plan.

If you'd like, we can review any potential credit opportunities to raise your score and determine if it is possible to get your score to a minimum of 620.

Give me a call if you'd like.

Ted Canto

Whether or not your goal of owning a home becomes a reality will depend a great deal on your credit. FHA requires a minimum 2 years since the discharge or a Chapter 7 bankruptcy, and 3 years from a foreclosure before you can apply for a mortgage. However, you should contact a good lender in your area and get pre-approved for a mortgage before you begin looking for a new home.

And yes, you can start looking for a home before the 2 and 3 year mark. However, you won't be able to make settlement on your new home until after those 2 milestones.

As for "speeding up" the process of improving your credit score, there's not much that can be done except time and the re-establishment of good credit.

Have you checked your score? Most lenders require 2-3 years waiting period, so you are close. I can give you free websites to check your score or I can help connect you to someone who can pull a report for you. Are you currently in Riverside area? I would be happy to give you some help and advice with further information (no obligation). Call me, I actually answer my phone! Dani-Lynn Trevino - (951) 970-1615 DRE# 01788846 or visit my website at http://www.DIALdani.com

Jessie;

Make sure that you are working with a licensed mortgage broker.Depending on your oncome and down payment, you could very well qualify now forr FHA financing. Contact a reputable lender fo info. If you need a referral, I am happy to give you a couple.