Hello there Hobart.
With all due respect,So far, both of the answers you have received are correct and NOT correct. Based on the product or loan that you would be receiving, the information changes greatly. For example, if you wanted to go with a CONVENTIONAL loan, that is 4 years! FHA/VA, have a 2 year "rule" as Dana says, BUT, and this is BUT, there is a small possiblilty that you could get approved now, but it depends on the REASON for the bankruptcy, and you have to have a completely strong file! Reasons for the BK cannot be just trivial things...it has to be something major like a loss of life, injury, medical disaster, huge job loss, etc..etc..etc...I hate to be harsh..and I am sorry for sounding insensitive, but short of 2 years from Date of Discharge can only be done with...as I said...A STRONG FILE< and QUALITY explanation of the situation, in addition to NO PAYMENT SHOCK from rent ot house payment, and many others! There are tons of other factors as well, but these are the biggies! So, Gwen is partially correct.
In addition, there is a Guaranteed Rural Housing program that I am hugely a fan of and VERY familiar with, as I have done over 300 of them in my career! Our company specializes in this product! There is a local Rural Development office in Fon Du Lac for example. HOWEVER< and this is where you HAVE TO WORK with someon who knows this product...THERE are what are called LENDER OVERLAYS! In other words, THE USDA may say it is okay for a bankrupcty to be one year old, but the LENDER/FUNDER OF THE LOAN, like JP Morgan Chase, has a 2 year rule! I know, it doesnt make sense, but that is how it works! Wells Fargo does USDA loans too..and once again..2 year rule. For example, there is no real Bankrupcty RULE with USDA loans..but...................Inside of 2 years, you have to have all of the above..good reasons etc..and a good credit score. The Rural Development Website clearly states that you must show creditworthiness, and that credit scores, bk's etc..dont' matter..>But that is NOT the case with the Funder that actually FUNDS the loan!
You can email me directly at Darin@Osmwi.com if you have any further questions or concerns! I KNOW it is confusing! Sorry..but that is why you need someone who knows these products...not what they MIGHT BE< or how it MAY happen! My phone# is 608-592-2227 I have been in the Mtg industry for 21 years, and currently do not originate loans, but Manage a large team of people who do! Thanks so much! Darin
I have done SEVERAL BLOGS on USDA loan!! here's a good one for you!