You're going to get a lot of advice to work on your Credit Score to be able to qualify for a Conventional Mortgage. And that's not bad advice. As for an FHA loan, it will depend on the type of bankruptcy you had. If it was a Chapter 13 Reorganization, you may be able to qualify for and FHA loan after 2 years of being discharged if your Credit Score is high enough. If your bankruptcy was a Chapter 7. it will take 3 years before they will consider you.
There is another way for you to acquire a Home Mortgage and more and more buyers are resorting to it. There are very few of us who have not had their credit dinged by the unfortunate circumstances of the last few years. At the same time, the Banks and Mortgage Lenders, who seem to have been assigned the blame for this mess, have been inundated with rules and regulations and Regulatory Agencies looking over every move they make to the point where they are demanding reams of information and qualifications before they are willing to make a loan.
The alternate source of a Home Mortgage is to resort to Private Lenders.
Many individuals and groups of investors, having seen the vacuum created by the difficulty of obtaining a Conventional Loan, are becoming licensed by the State to issue Home Mortgages. Their down payment requirements are higher that Conventional money and their interest rates are higher but they are providing the vehicle for potential buyers to get financed when no other avenue seems to open to them.
Private Lenders are more expensive that Banks but, consider this. The home you buy today is selling for about 70% of what it sold for 4 years ago and hopefully 60% to 70% of what it will sell for again 2 to 3 years from now. You, therefore will have considerable equity in your home in a lesser amount of time. Your bankruptcy will not be a consideration in their decision to lend to you. They look for your income and assets that will enable you to repay the loan and the Appraised value of the property you will use as collateral.
If you research some of the Private Lending Companies, be sure to ask if they have a Pre-Payment Penalty. You don;t want to be locked into a high interest loan when you have gotten your affairs in order and can refinance to a more economical Conventional Loan. These Companies will usually lend up to 10 or 12 years but they do so expecting that you will pay it off early.
I have worked with a Company for several years now who are licensed here in Georgia, with excellent results. If you would like to explore that avenue of financing a home, here's their contact information:
The Westmoore Group, LLC
Ph: (646) 801-6190
Fx: (646) 619-4291
The Westmoore Group, LLC is a licensed lender in the State of Georgia and operates under the license #30544.