I have a bankruptcy a chapter 7 that was discharged in 5/2010 is there a bank or program to get me financed?

Asked by Ed, 14228 Wed Aug 24, 2011

my crdit score is in the 600's and have 2 credit cards in good standing.

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Wed Aug 24, 2011
Hi Ed

With FHA you could not close your new mortgage until you have been Discharged for 2 years. As long as you have re-established new credit and have a credit score above 640 - you can purchase utilizing FHA. You can actually enter into a contract at 22 months from discharge and close the loan after you have passed the exact date in May of 2012.

I would be more than happy to answer any other questions you might have - Please do not hesitate to contact me!
1 vote
Lauryn Eadie, Agent, Reston, VA
Wed Aug 24, 2011

Lenders will also probably ask for a letter of explanation in regards to your bankruptcy once you get to underwriting. So making sure that you have a solid financing contingency in your purchase contract will be very important. Make sure your agent is aware of the situation so they can properly prepare your offer to protect you in case something comes up and financing falls through.
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james harner, Agent, Limerick, PA
Wed Aug 24, 2011
The simplest answer is no. You are going to have to wait 3 years after your discharge to obtain financing, these are underwriting guidelines for all federally underwritten loans.. In the interim I would try to build credit thru secured credit cards, short term financing, dept. store cards and paying balances on time and carrying a balance for 6 months at least.

you may just want to try to go lease purchase if you can find a seller willing to finance. This is an excellent option in today's difficult lending environment.
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