Credit Score in Dallas>Question Details

Ladyme, Home Buyer in Dallas, TX

I am in a consolidation (ch13) of my debt which I am paying back through a court appointed trustee. Would this hender me in qualifing for a home loan?

Asked by Ladyme, Dallas, TX Mon Nov 21, 2011

Current Ch 13, stable work history and income

Help the community by answering this question:


As AV mentioned you have had to have made at least 12 months of on time payments, but with the way lenders are feeling about risks, they may deny you until your Bankruptcy has been discharged. You won't truly know until you sit down with a Mortgage Broker. You may even consider talking to a local Credit Union as their guidelines are a little more laxed than traditional lenders.

Best of Luck;

Christina Solorzano;
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Broker of 10+ years

We also have DIY Packages available.
0 votes Thank Flag Link Fri May 3, 2013
Recommend to contact a mortgage broker direct to review your entire circumstance

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Sun Nov 27, 2011
Here is the guideline:

• Chapter 13:
A minimum of 12 months of the payout period has elapsed under the bankruptcy and the payout
performance has been satisfactory with all required payments
made on time. Borrowers must also receive written permission from the (Trustee or Bankruptcy
Judge) to enter into the mortgage transaction.
0 votes Thank Flag Link Mon Nov 21, 2011
Lenders are very picky right now. I wouldn't count on it. I would contact any lender of your choice and just ask. It won't cost you anything but your time.


0 votes Thank Flag Link Mon Nov 21, 2011

There are very low interest rates available currently with minimum pricing adjustments for the situation.
0 votes Thank Flag Link Mon Nov 21, 2011
Good afternoon,

If you are wanting to finance most the balance of a new home purchase and are currently under ch. 13 protection and reorganization, it will be very difficult to qualify for a mortage. You should also not expect to qualify for a low interest loan (in the unlikely event that you were to be approved at all.)

It may be in your best interest right now, to work on your debt issues and savings while you rent or even better, live with a family member. Over time, paying off the debts will better position your credit score and allow you more options in the future with regard to mortgage loans.

This is a very abbreviated answer, I know. But options right now for those that cannot demonstrate credit worthiness are extremely limited (and virtually non-existant in the conventional loan market.)

A question to consider, if you have to pay down structured debt, where would you get money for a down payment and closing costs (not to mention other purchase expenses?) How would your court appointed trustee respond to your interest in using funds for a new home instead of debt resolution? Would the court even allow you purchse in light of your present obligations to your creditors?
0 votes Thank Flag Link Mon Nov 21, 2011
Much will depend on how long you have been paying back and were all payments made on time and satisfactory; therefore visit with any loan officer, after reviewing all your information, a determination can be made...
0 votes Thank Flag Link Mon Nov 21, 2011
That would not. We can currently offer loans to those in Chapter 13 BK's. Email me at for a free consultation.
0 votes Thank Flag Link Mon Nov 21, 2011
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