Denise Hess…, Other/Just Looking in San Diego, CA

Home loan after bankruptcy?

Asked by Denise Hess Gilles, San Diego, CA Mon Jul 9, 2012

My spouse and I filed for bankruptcy more than 2 years ago. Since then we have worked diligently to rebuild our credit. We have a credit score of 620 & 640. We currently have 0 debt, 5% to put down on a home, make 70K a year, how likely is it that we can get approved for a home loan?

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lendersnetwo…, Agent, Plano, TX
Thu Oct 24, 2013
12 months after a BK you're now eligible for a new HUD program for an FHA loan, as long as you have reestablished positive payment history.

The U.S. Department of Housing and Urban Development (HUD) recently announced the “Back to Work – Extenuating Circumstances” program, aimed to help people who have lost their home through foreclosure, short sale or bankruptcy. HUD has reduced the previously required minimum of 36 months to 12 months before they may be able to finance another home, given that they meet HUD’s minimum eligibility requirements.
1 vote
Roy Bush, Both Buyer And Seller, Phoenix, AZ
Sun Jul 21, 2013
Check out CFS Mortgage's loan program at They allow a mortgage after a foreclosure, short sale, or chapter 7 bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
1 vote
Patti Kane, Home Buyer, Boulder, CO
Tue Jun 11, 2013
I had a short sale last year and my Realtor recommend for a home loan. I am very happy to be able to purchase again.
CFS Mortgage assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.
1 vote
George Tirs, , Richmond, VA
Thu Nov 29, 2012
We can get it done! Call me!
0 votes
Ellen Clark, Agent, Midlothian, VA
Tue Jul 10, 2012
Your best bet is to call a local lender and they can help you on whether you can buy now or not. They can also advise you as to how long you might have to wait or what you can do to bring your credit ratings up. Good Luck.
0 votes
Lee Newcomb, Agent, Midlothian, VA
Mon Jul 9, 2012
Nevermind, just realized that trulia is emailing me questions from people in a different state. Not sure why!
0 votes
that's because the inquiry was placed in the Midlothian zip code area
Flag Tue Jun 11, 2013
Lee Newcomb, Agent, Midlothian, VA
Mon Jul 9, 2012
If it was Chapter 7 you probably can get a loan. If it was Chapter 13 I don't believe it has been long enough. Call me and I will get you on the phone with the best lender around. If he can't make the loan then no one can.

Lee Newcomb, Realtor
Long and Foster Real Estate
0 votes
Gregorio Den…, , San Diego, CA
Mon Jul 9, 2012
It depends on what type of BK it was and what type of financing you are seeking. It's niot a blanket 2 years. It is possible to purchase again after bankruptcy after the following time frames and conditions have been met.

A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA-insured mortgage if at least two years have elapsed since the date of the discharge of the bankruptcy. During this time, the borrower must have

• re-established good credit, or
• chosen not to incur new credit obligations. An elapsed period of less than two years, but not less than 12 months, may be acceptable for an FHA-insured mortgage, if the borrower

• can show that the bankruptcy was caused by extenuating circumstances beyond his/her control, and
• has since exhibited a documented ability to manage his/her financial affairs in a responsible manner.

A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents that

• one year of the pay-out period under the bankruptcy has elapsed
• the borrower's payment performance has been satisfactory and all required payments have been made on time, and
• the borrower has received written permission from bankruptcy court to enter into the mortgage transaction.

Bankruptcy (Chapter 7 or Chapter 11) A four-year waiting period is required, measured from the discharge or dismissal date of the bankruptcy action. Exceptions for Extenuating Circumstances A two-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the discharge or dismissal date of the bankruptcy action.

Bankruptcy (Chapter 13) A distinction is made between Chapter 13 bankruptcies that were discharged and those that were dismissed. The waiting period required for Chapter 13 bankruptcy actions is measured as follows:

• two years from the discharge date, or
• four years from the dismissal date. The shorter waiting period based on the discharge date recognizes that borrowers have already met a portion of the waiting period within the time needed for the successful completion of a Chapter 13 plan and subsequent discharge.
0 votes
Tina Beasley, Agent, Saint Augustine, FL
Mon Jul 9, 2012
I believe it is possible for you if it has been 2 years since your bankruptcy was released. I have a lender that I would like for you to call. I think he just might be able to help you. Give me a call as soon as you can and let's discuss this in a little more detail so that I can better assist you.

Tina Beasley
Associate Broker
804-972-9927 Cell Direct
0 votes
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