how can someone bankrupt get a new loan for a home?

Asked by nalah64, Lindale, GA Tue Jul 24, 2012

i filed chaper 13 couple years ago then when my husband passed away i changed it to chaper 7

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Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Wed Jul 25, 2012
FHA mortgages are the least restrictive for a previous bankruptcy. HUD requires that a minimum of 24 months must have elapsed from the DISCHARGE date of a Chapter 7 Bankruptcy before a borrower can be eligible for an FHA mortgage.

For a Chapter 13 Bankruptcy, then you must have made at least 12 on time payments. Additionally, you must also have permission to purchase from the Bankruptcy Court.

In the time since the Bankruptcy, there should be no new derogatory items such as late payments, collection accounts, liens, judgments, etc. Having late payments after a Bankruptcy is often viewed as a disregard for the importance of credit. It also reflects that you are still having financial struggles.

If a mortgage was included in the Bankruptcy, you must wait at least 36 months from the foreclosure date to be eligible for an FHA mortgage. Sometimes, the foreclosure happens well after the Discharge Date of the Bankruptcy. If the mortgage was no re-affirmed, there is not much that can be done until the property get foreclosed on.

Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified you purchase, you can submit your request online at

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
1 vote
Sonja Tani, Agent, SNELLVILLE, GA
Sun Dec 2, 2012
Hi Nalah,
I'm sorry for your loss. Through normal channels you would have to wait 2 to 3 years after a Chapter 7 bankruptcy to get a conventional loan. However there are other ways to get a home loan. I have worked for several years now with a Private lending company who specializes in clients in just your situation. They will require a larger down payment than most conventional mortgages but they will not put the weight on the bankruptcy. It may sound expenseive at first look but when you consider the great deal on homes that are out there today, you would still be better off than waiting 2 to 3 years and paying more for the home.
This company will lend up to 12 years with no pre-payment penalty. That means that as soon as that bankruptcy is no longer a problem, you can refinance to a Conventional Mortgage.
Here Is their contact information should you want to call them to discuss it with them.

The Westmoore Group, LLC
Ph: (646) 801-6190
Fx: (646) 619-4291

Good Luck.
0 votes
William Pola…, Mortgage Broker Or Lender, Suwanee, GA
Sun Jul 29, 2012
Rodney gave great advice. Follow it. Make sure you have 3 credit cards at least a year old each. Car payment can substitute for a credit card.
Most people have low scores because they didn't open credit after the bankruptcy. Crazy huh? Credit gets us in trouble and then we're told to get more to buy stuff. Just doesn't make sense.
You can also buy with owner financing. Our group is currently doing this in TN and just now tapping into GA. In order to do this, we have to find people in pre-foreclosure status. It's important that you find something you can afford, get everything in writing, reviewed by a Realtor and always pay the bank directly with checks. If the owner says cash only, walk away. Get an inspection of the house (rent or buy) before you move in and write down even the smallest problems. Take pictures with date on picture.
0 votes
Suzanne MacD…, Agent, Morristown, NJ
Wed Jul 25, 2012
The typical waiting period for buying a home after bankruptcy is two years. For foreclosure it's three years. If you're taken measures to rehabilitate your credit rating, and it's been a few years, I would suggest you talk to a local mortgage banker and see what they can do for you, you may be pleasantly surprised. At the very least you will know what needs to be done and how long that will take so you have an idea when you will be able to buy.

Good Luck!
0 votes
Shelley Woma…, Agent, Rome, GA
Wed Jul 25, 2012
Email me and I will give you some direction.
0 votes
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