Right now I would avoid any new debt as much possible and save as much as possible. Your income will be huge. How long have you been with your current employer? Investors really look at your down payment, debt to income ratio and job stability.
There are a couple debt service places that may help with the chapter 7 on your credit report also.
Only a lender can tell you when/whether you can qualify for buying a new home. You might also want to hire a credit repair company to help you improve your credit qualifications as quickly as possible. There are some efforts that may move the score up quicker if implemented. However, expect that a foreclosure will create some hard limitations that you will need to overcome.
If you need the name of a qualified lender, ask here and many will respond. Good luck!
It is an excellent time to buy, so I understand your concern. Unfortunately lending is the way it is right now, but it is a good idea to stay in contact with a lender so that they are able to get you on the right path to owning a home again soon.
Is it your job that is transfering you out here? Maybe look for rentals around the area where you'll be working. We are a full service brokerage and also have rentals available.
Sacramento has a lot to offer. We have a great downtown, the river, bike trails, lots of trees, a great nightlife, art, music and very close to many great destinations.
got two relevant things for you to read -- this is a blog excerpt from Bill Zielinski...
The FHA is introducing new guidelines on loan to value ratios and the minimum credit score required for FHA borrowers. As detailed in a Mortgagee Letter from the Department of Housing and Urban Development (HUD), the following credit requirements will apply for FHA borrowers, effective October 4, 2010.
* To be eligible for maximum financing, borrowers will need a minimum credit score of 580 or higher.
* Borrowers with a credit score between 500 and 579 will be limited to a loan to value of 90%. A sub 580 FICO credit score borrower will henceforth need to make a 10% minimum down payment on a purchase transaction.
* All borrowers with a credit score below 500 will not be eligible for FHA-insured mortgage financing.
HUDâ€™s newly introduced minimum credit score and loan to value requirements will apply to all single family loan programs, except for Reverse Mortgages (Home Equity Conversion Mortgages) and Hope for Homeowners.
The new credit requirements are not expected to dramatically change the number of FHA mortgage approvals. Most lenders had already imposed a minimum credit score requirement of 640 or higher for FHA borrowers. In limited cases, borrowers with scores between 620 and 639 could still obtain mortgage approval.
Many potential FHA borrowers with scores below 640 who cannot obtain mortgage approval may be left wondering why this is the case if the FHA has established a minimum score of only 580. The explanation for this is that the FHA does not make mortgage loans but rather insures FHA loans made by lenders. Despite the FHA insurance, banks do not have an iron clad protection from loss.
... rest of that blog at http://seekingalpha.com/article/223956-the-fha-s-new-minimum
And I wrote a 10 part blog called "Top 10 Credit Myths" which is good..
Renting for 6 months to a year gives you time to explore the different areas, see what is close to your work, close to the recreation you like to do, shopping etc.
Sub-prime is also known as "B" "C" or "Hard Money" depending on just how far below an "A" rating you are.
Generally the rates for "subprime" are way way way higher than conventional. The fees are higher and the down payment must be hefty....
So, with such a good income, you could probably buy, (provided that you have at least 20% down and will be owner occupant. Oh, and be willing to pay an exorbitant interest rate. The high rate is commensurate with the perceived risk.
Renting is probably the lower cost option for now... It is a good idea to build up your down payment even if you later qualify for conventional...The larger a down payment you can put, the less you pay in private mortgage insurance.
Good luck to you.