Brandi,

Everybody answered assuming you had to use conventional "bank" financing. There are other ways to buy a home than just hope a bank will give you the money.

I am a broker in Tallahassee. Please check out my blog link below and feel free to contact me if you would like to be in a home in the next month or two.

Tom is right on with his answer. I'd like to add that, in addition to 2 years needing to elapse since the BK, you also need to have re-established credit. This likely means needing at least 3-4 active tradelines opened with at least a 12 month history and NO late payments in the last 12 months. You need to demonstrate to the lender that you have righted your financial ship since the bankruptcy and that you are a good credit risk now.

As of now you need to close by Dec 1st to qualify for the tax credit, but my gut tells me that someway, somehow the tax credit deadline will be extended.

Best of luck

Assuming you qualify otherwise, the lender should be able to get your loan underwritten and preliminarily approved in October. The final approval will occur after the BK discharge is 2 years removed. Many of the automated systems will not approve your application with the BK so the file may have to be manually underwritten, which will bring in stricter guidelines as far as income and debt ratios, etc. That being said, there are other issues affected by the bankruptcy, so you should be speaking with a lender now who you allow to pull your credit (only if they tell you they can overcome the BK issue) and verify that you qualify once the BK is "seasoned."

You should also be working with an agent on your side to find the right property, the right seller and structure the purchase contract properly.

You may not realize how much cheaper homes will be in 2010. Expect marked price declines in housing throughout next year. The $8000 credit may even be doubled for next year.

All talk of recovery has to be dismissed for total lack of credibility.

I can help you here. Please drop me an email or call (678)522-5340. Thanks Wade