Purchasing a home after Bankruptcy and waiting period?

Asked by Dan, Buffalo, NY Wed Oct 16, 2013

I'm currently in a Chapter 13 plan and will finish in 5 months. During this time I was able to obtain 2 secured credit cards and work on reestablishing good credit and currently have a score of 728. I've also been working for the same company for 17 years. I'm a first time home buyer and was looking into using VA/FHA Loan. However, I'm a little confused with the new FHA rules and the waiting period after discharge.

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Wed Oct 16, 2013
Hi Dan,

The rules are different based on the chapter of BK you filed. Chapter 7 requires 2 years from the discharge but a chapter 13 BK does NOT have to be discharged in order for you to be eligible for either VA or FHA in fact you may be eligible 1 year after you filed!

With that said, VA Is going to be the best option for you hands down because it's no money down & the monthly mortgage insurance on FHA is ridiculously high. For example: On a $200,000 loan the FHA MI will add $225 to your monthly payment.

Check out my recommendations here on Trulia from some of my past clients by clicking the following link.


Please feel free to contact me for more information or help. You can also find info on my VA Mortgage website by clicking the link below.

John Burke
Senior Mortgage Banker
Peoples Bank & Trust
0 votes
Joe Sorrenti…, , Buffalo, NY
Wed Oct 16, 2013
This is a question is for a Bankruptcy Attorney or licensed mortgage banker. Anyone else answering this question here on-line is engaging in Substantive Contact with you without signed full disclosure which is a violation of NYS Real Property Law and possibly NYS Banking laws.

Unfortunately, Big Brother is always watching especially now on these these type of sites.
Stop down at your local bank. I wish you luck
3 votes
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