i did a BK chapter 7 a year ago. my credit score is 652 i have really good income. can i purchase a home?

Asked by Cesar, Tue Mar 5, 2013

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6
Alex Montelo…, Agent, Seal Beach, CA
Thu Dec 18, 2014
From the previous comments from the lenders in this forum, It looks like the odds are in your favor.
You may need a Broker to help you find your property. When you have the time, please give me a call. I'd be glad to assist.

All the best,

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRE Lic #01456982
0 votes
, ,
Fri Sep 13, 2013
No problem, though you will pay a higher rate for your credit score. If you came to me for a loan, I would review your situation and see how I could get the credit score up, in order to get you the bes rate possible.

Rich Littlefield
949-297-1207

NMLS 287206
0 votes
Roy Bush, Both Buyer And Seller, Phoenix, AZ
Sun Jul 28, 2013
CFS Mortgage, http://www.cfsflex.com, has a flexible loan program. 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.
0 votes
, ,
Tue Mar 5, 2013
You will be eligible for an FHA loan 2 years from the day of the discharge of the BK.
in the mean time, make sure every remaining debt is paid on time.
Lets work on getting that credit score increased by paying down high credit limits to 50% or less.
0 votes
, ,
Tue Mar 5, 2013
Hi Cesar
FHA guidelines are the most forgiving. In most cases you need to wait until 2 years after the discharge date to apply for a new mortgage. Below are the guidelines direct from the FHA underwriting guide:

"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.

Note: The lender must document that the borrower’s current situation
indicates that the events which led to the bankruptcy are not likely to recur."

Normally "extenuating circumstances" would include serious extended illness or death of a wage earner. Divorce or job loss/transfer would typically not count.

Hope this helps!
0 votes
Linda S. Cef…, Agent, Franklin, WI
Tue Mar 5, 2013
Yes, Cesar, you should be able to move forward. The best thing for you to do is find a good lender that can guide and advise you. It sounds like you are in a good place to buy a home.
0 votes
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