IS IT POSSIBLE TO BUY A HOME JUST COMING OUT OF BANKRUPTCY?

Asked by RENAE NEAL, South Holland, IL Thu Feb 25, 2010

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Bradley Egge…, Mortgage Broker Or Lender, Oakbrook Terrace, IL
Fri Feb 26, 2010
Renae,

It depends on what you mean by "just coming out of bankruptcy". If within the last few months, then no. FHA and Fannie Mae have different requirements depending on the type of bankruptcy filing

If you filed Chapter 7, you will have to wait 24 months from discharge to qualify for FHA financing. Even then, you must have re-established good credit (or chosen not to incur any new credit obligations). There is an exception if it has been less than 24 months but more than 12 months since discharge, but the exception only applies in cases where there was a death or serious illnes of a primary wage earner.

FHA requires at least 1 year of a satisfactory payout period to be completed for Chapter 13 bankruptcies.

The wait is even longer for conventional financing: at least 4 years from discharge of Chapter 7 and 2 years from discharge of Chapter 13.

I hope this helps. If you want further clarification, you can call me at the number below or email me. Our CEO has also written a great article on credit here: http://www.richardhartian.com


Bradley Eggers
Loan originator
Ardain Mortgage Corp
847-963-1000
bradley.eggers@ardain.com
Web Reference:  http://www.bradleyeggers.com
1 vote
Tonya Brobeck, , Everett, WA
Thu Feb 25, 2010
Most likely your bk needs to be atleast 2 years old for FHA to approve a loan. A lender in your area should be able to add more detail.
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