Financing in 43123>Question Details

Mark Thomas, Home Buyer in Columbus, OH

I am looking into buying a home, however, I am 16 months out of a discharged Chapter 7 bankruptcy, with a

Asked by Mark Thomas, Columbus, OH Sat May 3, 2008

current beacon score of around 580. There are no negatives on my credit history since the bankruptcy and I have re-established credit since the bankruptcy with a few credit cards, auto loans with my credit bureau, and unsecured personal loans. Are there any lenders out there who can finance someone with this background. I have heard different stories on FHA financing, some saying two years after a discharge I can be financed, some saying one year after a discharge, still others saying two years after the filing date. Any advice???

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I'm a columbus local banker, I love the buckeyes, and would be more than happy to help you out. Call me when you get a chance. My FHA underwriter is superb! Is this your first home?

Brent Bester
Mortgage Professional
614-622-8916
bbester@usavingsbank.com
0 votes Thank Flag Link Fri May 16, 2008
What is the reason for your bankruptcy? If you can document that it was caused by extenuating circumstances beyond your control, you mighht have a chance. You would also need to show that you have improved your total financial picture: credit, work history, savings, DTI...
1 vote Thank Flag Link Thu Jul 24, 2008
it is two yrs. for fha.....from the date of discharge......and three from a foreclosure.....however......if there were extenuating circumstances that caused the bk.....you can be approved in less time......a car accident....and off work...for example..anything beyond your control that can be documented...bob mcclure -mortgage now- farmington, michigan...i am licensed in ohio.(248) 806-0366
1 vote Thank Flag Link Thu Jul 24, 2008
extenuating circumstances.....This loan is closed and funded Thanks Mark!! -Great Client

Brent Bester
Mortgage Professional
614-622-8916
0 votes Thank Flag Link Fri Aug 1, 2008
Look for a lease-to-own or a land contract.
0 votes Thank Flag Link Sun Jul 6, 2008
You need to get to the two year mark before you will be able to do anything.
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Sun May 18, 2008
Mark,
You seem like you are doing the proper steps to re-establish your credit. I work with a great lender that can still finance just a few days outside of bankruptcy, providing that other conditions have been met. Please visit my site for more information. thank you, Tracey Hartson
0 votes Thank Flag Link Fri May 16, 2008
Hi Mark,

This is the best time for you to meet with a reputable lender to make sure you are ready to go 8 months from now when you hit the 2 year discharge mark. They can help you review and clean up your credit report plus advise you on steps to take to raise your credit score. You would also be wise to save up for a down payment, the mortgage industry has changed a great deal this year and there is no guarantee that a seller will be allowed to assist with your down payment.

Contact me if you want some lender recommendations, there are several that have worked with my clients for months, even years as they recovered from bankruptcy and worked towards buying a home.

Thanks for the question and best wishes!
Cheryl
Web Reference: http://DublinHomes.Us
0 votes Thank Flag Link Sat May 10, 2008
You have to wait at least two years post discharge to get the home loan. You need to continue to work on getting your score up to at least a 680 in order for things to go smoothly. FHA will be your best bet, so keep working toward a higher score and it will happen after the two year mark hits. Get with a lender now who can help you with some tips on how to raise your score.
Web Reference: http://www.SWOhioRealty.com
0 votes Thank Flag Link Sat May 3, 2008
Hi Mark,

"At least two years must have elapsed since the discharge date of the borrower and / or spouse's Chapter 7 Bankruptcy, according to FHA guidelines. This is not to be confused with the bankruptcy filing date. A full explanation will be required with the loan application. In order to qualify for an FHA loan, the borrower must qualify financially, have re-established good credit, and have a stable job."

Hope this helps!

Katie McCann
0 votes Thank Flag Link Sat May 3, 2008
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